Study Compares Small Business Owner Salaries by State

Ooma’s new study gives crucial insight into small business ownership with a map and analysis comparing average yearly salaries in every state and Washington, D.C. The study offers key insights into the world of entrepreneurship today. They used data from ZipRecruiter to create a map that systematically compares wages across the country. The team also shows that the national average annual wage across industries is $66,621, providing invaluable context for the listed salaries.

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The maps contain geographic insight into earning potential. We see Washington state in the lead with small business owners earning an impressive $144,941 a year on average. That’s an incredible 127.2% higher than the national average salaries. The team points out that the Pacific Northwest is a small business hotspot for a reason. Seattle and the Puget Sound area are hubs for innovation and technology, supported by helpful infrastructure for small businesses, plentiful coworking space, and fresh talent setting out on their own after building experience with huge companies like Google, Microsoft, and Amazon. These factors have created an environment where small businesses can not only survive but thrive thanks to low business taxes and a talented pool of entrepreneurs and employees.

The data shows that 15 states and Washington, D.C., have earning averages that are double the national average. Washington, D.C., came in second place for small business owner wages at $144,612. It’s another technology hub that enjoys the benefits of being the nation’s capital, with access to government incentives and programs that can help entrepreneurs get their ideas off the ground.

The team’s analysis didn’t look away from more challenging regions. Florida had the lowest annual salary at $95,633 a year, though, as we can see, small business owners in Florida still earn more than the national wage average. Florida is a competitive market driven by tourism, yet small business ownership is still a lucrative option here. Ooma explains that Florida business owners do face unique challenges, like a tourism market that ebbs and flows with economic changes, fewer benefits for business owners, and a high concentration of small businesses.

Apart from the pure data, we can find lots of interesting context that helps us understand regional business climates. Cost of living and market dynamics influence how much entrepreneurs can earn, and we can see facts like this visualized in the colorful map the team created. Data that could be complex becomes easy to digest and quick to reference.

Ooma did an excellent job transforming data into geographic insights that can offer people practical small business guidance. Aspiring entrepreneurs can use the data here to launch a new idea, relocate or expand successfully, while industry observers can learn new things about the small business climate. Rigorous data, practical insights, and smooth visuals combine to create an enjoyable and practical presentation of small business owner wage data.