Starting a Small Business in Illinois

Welcome to the Small Business Startup Illinois Franchise Directory! Here, you’ll find everything you need to begin your journey to business ownership in The Prairie State. If you’re thinking about starting a small business in Illinois, read on for an overview of the state economy. Afterward, explore business opportunities and franchises for sale with our llinois Franchise Search Tool.

Illinois Industry Trends

If an industry is performing well, business opportunities within it are often worth exploring. Begin your market research with this list of the Illinois economy's largest industries in 2022. Afterward, take your research one step further by investigating niche markets and B2B opportunities within one of these top revenue-generating industries.

1. Drug, Cosmetic & Toiletry Wholesaling (Revenue: $75.8 billion)
2. Property, Casualty & Direct Insurance (Revenue: $67.2 billion)
3. Commercial Banking (Revenue: $51.1 billion)
4. Hospitals (Revenue: $46.2 billion)
5. Health & Medical Insurance (Revenue: $44.6 billion)
6. Gasoline & Petroleum Wholesaling (Revenue: $42.2 billion)
7. New Car Dealers (Revenue: $42.1 billion)
8. Colleges & Universities (Revenue: $33.7 billion)
9. Video Games (Revenue: $32.5 billion)
10. Brand Name Pharmaceutical Manufacturing (Revenue: $31.9 billion)

Illinois Sector Statistics

When starting a small business in Illinois, gross domestic product (GDP) is another tool that entrepreneurs can use to make investment decisions. Generally, a steadily rising GDP means that people are spending more money and more jobs are being created.

The three sectors that contributed most to Illinois’ GDP in 2022 were Manufacturing; Real Estate, Rentals & Leasing; and Finance & Insurance. Combined, these three sectors represented 38.7% of the state’s GDP. In 2022, the 10 sectors that contributed most to Illinois’ GDP included:

1. Manufacturing (Value: $110.8 billion* | Annual growth: 3.3%)
2. Real Estate, Rentals & Leasing (Value: $92.5 billion* | Annual growth: -0.7%)
3. Finance and Insurance (Value: $77 billion* | Annual growth: 3.8%)
4. Professional, Scientific & Technical Services (Value: $74.8 billion* | Annual growth: 4.0%)
5. Wholesale Trade (Value: $58.7 billion* | Annual growth: 0.2%)
6. Healthcare & Social Assistance (Value: $56 billion* | Annual growth: 0.8%)
7. Retail Trade (Value: $42 billion* | Annual growth: 0.5%)
8. Media Production & Distribution (Value: $41.6 billion* | Annual growth: 7.4%)
9. Administration, Business Support & Waste Management Services (Value: $31.2 billion* | Annual growth: 7.0%)
10. Transportation and Warehousing (Value: $25.5 billion* | Annual growth: -2.3%)

*Approximately

Illinois Population Statistics

A growing population often means greater demand and a steady flow of new customers. If you are undecided about the location of your new business, start by investigating population statistics. Afterward, take your research a step further by exploring population demographics. By doing so, you can decide whether a location is a good match for your target market.

In 2022, counties with the highest populations in Illinois included:

1. Cook (Population: 5 million | Annual growth rate*: -0.6%)
2. DuPage (Population: 908,8k | Annual growth rate*: -0.5%)
3. Lake (Population: 687,600 | Annual growth rate*: -0.4%)
4. Will (Population: 687,500 | Annual growth rate*: -0.1%)
5. Kane (Population: 530,000 | Annual growth rate*: -0.1%)
6. McHenry (Population: 304,100 | Annual growth rate*: -0.3%)
7. Winnebago (Population: 279,000 | Annual growth rate*: -0.4%)
8. Madison (Population: 260,900 | Annual growth rate*: -0.3%)
9. St. Clair (Population: 254,900 | Annual growth rate*: -0.6%)
10. Champaign (Population: 208,500 | Annual growth rate*: -0.2%)
11. Sangamon (Population: 191,900 | Annual growth rate*: -0.5%)
12. Peoria (Population: 174,400 | Annual growth rate*: -0.9%)
13. Mclean (Population: 170,500 | Annual growth rate*: -0.2%)
14. Rock Island (Population: 139,100 | Annual growth rate*: -0.6%)
15. Kendall (Population: 133,800 | Annual growth rate*: 1.2%)
16. Tazewell (Population: 129,100 | Annual growth rate*: -0.7%)
17. Kankakee (Population: 107,200 | Annual growth rate*: -0.6%)
18. Lasalle (Population: 106,100 | Annual growth rate*: -0.7%)
19. Dekalb (Population: 104,200 | Annual growth rate*: -0.2%)
20. Macon (Population: 101,400 | Annual growth rate*: -0.8%)

*From 2017 to 2022.

Illinois Business Opportunities

We hope this snapshot of the Illinois economy helps as you investigate business opportunities in The Prairie State! Starting a small business in Illinois is an exciting journey, and we know you’re probably eager to get started. But remember, take your time to explore all your options. While you’ll always have the “opportunity” to start your own business, sometimes, it makes more sense to invest in an opportunity that already exists. These are called “Franchise Opportunities,” and they offer several benefits, including the recognition of a well-established brand and a proven track record of success.

To learn more, start by exploring franchise opportunities in Illinois, below!