Starting a Small Business in Rhode Island

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

Rhode Island 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 Rhode Island economy's most prominent 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. Commercial Banking (Revenue: $7.3 billion)
2. Colleges & Universities (Revenue: $6.3 billion)
3. Property, Casualty & Direct Insurance (Revenue: $5.8 billion)
4. Hospitals (Revenue: $5.5 billion)
5. Public Schools (Revenue: $4.8 billion)
6. Third-Party Administrators & Insurance Claims Adjusters (Revenue: $3.6 billion)
7. Health & Medical Insurance (Revenue: $3.2 billion)
8. New Car Dealers (Revenue: $3.0 billion)
9. Supermarkets & Grocery Stores (Revenue: $2.9 billion)
10. Jewelry & Watch Wholesaling (Revenue: $2.4 billion)

Rhode Island Sector Statistics

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

The three sectors that contributed most to Rhode Island's GDP in 2022 were Real Estate, Rentals & Leasing; Healthcare & Social Assistance; and Finance & Insurance. Combined, these three sectors represented 36.7% of the state's GDP. In 2022, the sectors that contributed most to Rhode Island's GDP included:

1. Real Estate, Rentals & Leasing (Value: $7.5 billion* | Annual growth: 2.2%)
2. Healthcare and Social Assistance (Value: $5.5 billion* | Annual growth: 0.6%)
3. Finance & Insurance (Value: $5.1 billion* | Annual growth: 1.8%)
4. Manufacturing (Value: $4.6 billion* | Annual growth: 2.2%)
5. Professional, Scientific & Technical Services (Value: $4.0 billion* | Annual growth: 5.3%)
6. Retail Trade (Value: $3.4 billion* | Annual growth: 1.4%)
7. Wholesale Trade (Value: $3.0 billion* | Annual growth: 0.4%)
8. Management of Companies and Enterprises (Value: $2.6 billion* | Annual growth: -11.2%)
9. Administration, Business Support & Waste Management Services (Value: $2.0 billion* | Annual growth: 6.4%)
10. Construction (Value: $1.9 billion* | Annual growth: 2.8%)
11. Information (Value: $1.8 billion* | Annual growth: 4.4%)
12. Accommodation & Food Services (Value: $1.6 billion* | Annual growth: -17.4%)
13. Educational Services (Value: $1.5 billion* | Annual growth: -2.5%)
14. Other Services (except Public Administration) (Value: $885.8 million* | Annual growth: -3.0%)
15. Utilities (Value: $868.4 million* | Annual growth: 1.3%)

*Approximately

Rhode Island 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. Doing so lets you decide whether a location is a good match for your target market.

In 2022, counties with the highest populations in Rhode Island included:

1. Providence (Population: 636,600 | Annual growth rate*: N/A)
2. Kent (Population: 165,200 | Annual growth rate*: 0.2%)
3. Washington (Population: 125,400 | Annual growth rate*: -0.1%)
4. Newport (Population: 80,900 | Annual growth rate*: -0.6%)
5. Bristol (Population: 48,000 | Annual growth rate*: -0.3%)

*From 2017 to 2022.

Rhode Island Business Opportunities

We hope this snapshot of the Rhode Island economy helps as you investigate business opportunities in The Ocean State! Starting a small business in Rhode Island 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 Rhode Island below!