A new study has found the top 10 most successful industries for small business with Professional, Scientific, and Technical Services topping the ranking.
Business valuation experts Eton Venture Services gathered data from the U.S. Small Business Administration to analyze the best industries for small business. They ranked the industries from highest to lowest number of small business to determine the top 10.
1. — At the top of the ranking is the Professional, Scientific, and Technical Services industry. This sector includes activities like legal advice and representation; accounting, bookkeeping, and payroll; architectural, engineering, and specialized design; advertising and photographic services; and veterinary services, among others.
2. — In second place is the Construction industry, which involves the construction of buildings or engineering projects like highways and utility systems. Establishments engaged in preparing sites for new construction and subdividing land for sale as building sites are also included in this sector.
3.— Third place belongs to the Transportation and Warehousing sector. This industry provides transportation of passengers and cargo, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation. These establishments use transportation equipment, including air, rail, water, road and pipeline, as productive assets.
4. — The Real Estate and Rental and Leasing industry is in fourth place. Establishments in this sector engage in renting, leasing, or otherwise allowing the use of tangible or intangible assets or providing related services. A major portion of this sector comprises establishments that rent, lease, or otherwise allow the use of their own assets by others, as well as managing, selling, renting, or buying real estate for others and appraising real estate.
5. — The industry in fifth place is the Administrative, Support, and Waste Management sector, where 2,910,983 small business flourished last year. In this industry, establishments engage in activities that support the day-to-day operations of other organizations. These establishments specialize in processes that all businesses must do and have traditionally done for themselves, such as general management, personnel, clerical, and cleaning activities.
6. — Sixth place belongs to the Retail Trade industry, with a total of 2,894,105 small businesses. Retail Trade includes establishments retailing merchandise without altering the product and services incidental to the sale of merchandise. These establishments sell merchandise in small quantities to the public, consisting of both store and non-store retailers.
7. — In seventh place is Health Care and Social Assistance. This industry includes establishments that provide medical care exclusively, health care and social assistance, as well as establishments that provide only social assistance. The services provided by these establishments are delivered by trained professionals and are defined based on the educational degrees held by the practitioners.
8. — The Arts, Entertainment and Recreation industry placed eighth, with 1,477,386 small businesses succeeding last year. These are establishments that provide services to meet cultural, entertainment and recreational interests. It includes establishments that are involved in producing, promoting, or participating in live performances, events, or exhibits, preserving and exhibiting objects and sites of historical, cultural, or educational interest and providing services that enable participation in recreational activities or amusement, hobby, and leisure time interests.
9. — Ninth place belongs to Accommodation and Food Services. Establishments in the Accommodation and Food Services industry provide customers with lodging and can also include businesses that prepare meals, snacks, and beverages for immediate consumption. The sector includes both accommodation and food services because the two activities are often combined at the same establishment, such as hotels.
10. — Lastly, in tenth place is the Finance and Insurance industry. These are establishments engaged in financial transactions (transactions involving the creation, liquidation, or change in ownership of financial assets). Activities include raising funds by taking deposits, collecting fees, insurance premiums, or annuity considerations, and providing specialized services supporting financial intermediation, insurance, and employee benefit programs.
Chris Walton, President and CEO of Eton Venture Services, commented on these findings.
“Small business are the backbone of America’s economy, offering innovation and personalized services across diverse industries,” Walton says. “Starting a small business requires courage and vision, as entrepreneurs transform ideas into realities that drive local and national growth.
“Owning and maintaining a small business navigating challenges with resilience and adaptability, creating not just profit but also community impact and job opportunities.”