Starting a Small Business in Washington

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

Washington 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 Washington 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. Software Publishing (Revenue: $64.4 billion)
2. Hospitals (Revenue: $33.5 billion)
3. New Car Dealers (Revenue: $27.1 billion)
4. Drug, Cosmetic & Toiletry Wholesaling (Revenue: $27.1 billion)
5. E-Commerce & Online Auctions (Revenue: $25.5 billion)
6. Aircraft, Engine & Parts Manufacturing (Revenue: $22.7 billion)
7. Wireless Telecommunications Carriers (Revenue: $21.9 billion)
8. Supermarkets & Grocery Stores (Revenue: $21.2 billion)
9. Petroleum Refining (Revenue: $20.9 billion)
10. Operating Systems & Productivity Software Publishing (Revenue: $20 billion)

Washington Sector Statistics

When starting a small business in Washington, 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 Washington’s GDP in 2022 were Information; Real Estate, Rentals & Leasing; and Retail Trade. Combined, these three sectors represented 48.3% of the state’s GDP. In 2022, the sectors that contributed most to Washington’s GDP included:

1. Information (Value: $140.8 billion* | Annual growth: 15.3%)
2. Real Estate, Rentals & Leasing (Value: $65.3 billion* | Annual growth: 2.4%)
3. Retail Trade (Value: $57.6 billion* | Annual growth: 5.2%)
4. Manufacturing (Value: $50.5 billion* | Annual growth: -3.5%)
5. Professional, Scientific & Technical Services (Value: $47.7 billion* | Annual growth: 9.3%)
6. Healthcare & Social Assistance (Value: $35.0 billion* | Annual growth: 3.4%)
7. Wholesale Trade (Value: $29.1 billion* | Annual growth: 3.1%)
8. Finance & Insurance (Value: $23.8 billion* | Annual growth: 3.1%)
9. Construction (Value: $21.3 billion* | Annual growth: 4.8%)
10. Administration, Business Support, and Waste Management Services (Value: $16.6 billion* | Annual growth: 7.8%)
11. Accommodation & Food Services Enterprises (Value: $11.3 billion* | Annual growth: 1.3%)
12. Transportation & Warehousing (Value: $11.3 billion* | Annual growth: -2.4%)
13. Other Services (except Public Administration) (Value: $8.7 billion* | Annual growth: 0.1%)
14. Management of Companies & Enterprises (Value: $8.6 billion* | Annual growth: 4.1%)
15. Agriculture, Forestry, Fishing & Hunting (Value: $8.5 billion* | Annual growth: -5.7%)

*Approximately

Washington 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 Washington included:

1. King (Population: 2.3m | Annual growth rate*: 1.1%)
2. Pierce (Population: 935,300 | Annual growth rate*: 1.2%)
3. Snohomish (Population: 849,200 | Annual growth rate*: 1.1%)
4. Spokane (Population: 542,700 | Annual growth rate*: 1.4%)
5. Clark (Population: 512,100 | Annual growth rate*: 1.5%)
6. Thurston (Population: 303,400 | Annual growth rate*: 1.6%)
7. Kitsap (Population: 276,200 | Annual growth rate*: 0.6%)
8. Yakima (Population: 253,100 | Annual growth rate*: 0.2%)
9. Whatcom (Population: 237,300 | Annual growth rate*: 1.3%)
10. Benton (Population: 212,000 | Annual growth rate*: 1.3%)
11. Skagit (Population: 134,100 | Annual growth rate*: 1.3%)
12. Cowlitz (Population: 114,200 | Annual growth rate*: 1.2%)
13. Grant (Population: 102,100 | Annual growth rate*: 1.4%)
14. Franklin (Population: 100,500 | Annual growth rate*: 1.7%)
15. Island (Population: 87,800 | Annual growth rate*: 1.0%)
16. Lewis (Population: 84,900 | Annual growth rate*: 1.7%)
17. Clallam (Population: 79,600 | Annual growth rate*: 1.0%)
18. Chelan (Population: 78,600 | Annual growth rate*: 0.6%)
19. Grays Harbor (Population: 78,000 | Annual growth rate*: 1.4%)
20. Mason (Population: 71,100 | Annual growth rate*: 2.1%)

*From 2017 to 2022.

Washington Business Opportunities

We hope this snapshot of the Washington economy helps as you investigate business opportunities in The Evergreen State! Starting a small business in Washington 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 Washington, below!