Starting a Small Business in Alaska

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

Alaska 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 Alaska 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. Tourism (Revenue: $70.1 billion)
2. Oil Drilling & Gas Extraction (Revenue: $34.5 billion)
3. Gasoline & Petroleum Bulk Stations (Revenue: $10.7 billion)
4. Real Estate Investment Trusts  (Revenue: $5.9 billion)
5. Hospitals (Revenue: $4.4 billion)
6. Seafood Preparation (Revenue: $3.0 billion)
7. Warehouse Clubs & Supercenters (Revenue: $2.7 billion)
8. New Car Dealers (Revenue: $2.2 billion)
9. Supermarkets & Grocery Stores (Revenue: $2.2 billion)
10. Petroleum Refining (Revenue: $2.1 billion)

Alaska Sector Statistics

When starting a small business in Alaska, 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 Alaska's GDP in 2022 were Mining; Transportation; and Real Estate, Rentals & Leasing. Combined, these three sectors represented 53.5% of the state's GDP. In 2022, the sectors that contributed most to Alaska's GDP included:

1. Mining (Value: $9.3 billion* | Annual growth: -8.8%)
2. Transportation & Warehousing (Value: $5.6 billion* | Annual growth: 0.7%)
3. Real Estate, Rentals & Leasing (Value: $4.6 billion* | Annual growth: -0.3%)
4. Healthcare & Social Assistance (Value: $4.1 billion* | Annual growth: 2.0%)
5. Retail Trade (Value: $2.2 billion* | Annual growth: -1.1%)
6. Construction (Value: $1.6 billion* | Annual growth: -4.8%)
7. Professional, Scientific & Technical Services (Value: $1.6 billion* | Annual growth: -2.1%)
8. Information (Value: $1.4 billion* | Annual growth: 1.5%)
9. Wholesale Trade (Value: $1.1 billion* | Annual growth: -2.7%)
10. Finance & Insurance (Value: $1.0 billion* | Annual growth: 0.4%)
11. Accommodation & Food Services (Value: $931.8 million* | Annual growth: -0.9%)
12. Administration, Business Support & Waste Management Services (Value: $834.5 million* | Annual growth: -2.0%)
13. Utilities (Value: $824.9 million* | Annual growth: 3.3%)
14. Other Services (except Public Administration)  (Value: $636.1 million* | Annual growth: -3.4%)
15. Management of Companies and Enterprises  (Value: $395.9 million* | Annual growth: 1.3%)

*Approximately

Alaska 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 Alaska included:

1. Anchorage Municipality (Population: 282,800 | Annual growth rate*: -0.7%)
2. Matanuska-Susitna Borough (Population: 113,300 | Annual growth rate*: 1.4%)
3. Fairbanks North Star Borough (Population: 93,100 | Annual growth rate*: -1.3%)
4. Kenai Peninsula Borough (Population: 60,100 | Annual growth rate*: 0.6%)
5. Juneau City and Borough (Population: 31,600 | Annual growth rate*: -0.4%)
6. Bethel Census Area (Population: 18,600 | Annual growth rate*: 0.4%)
7. Ketchikan Gateway Borough (Population: 13,600 | Annual growth rate*: -0.5%)
8. Kodiak Island Borough (Population: 12,600 | Annual growth rate*: -1.4%)
9. Nome Census Area (Population: 9,800 | Annual growth rate*: -0.6%)
10. North Slope Borough (Population: 9,200 | Annual growth rate*: -0.7%)
11. Kusilvak Census Area (Population: 8,300 | Annual growth rate*: N/A)
12. Sitka City and Borough (Population: 8,200 | Annual growth rate*: -0.9%)
13. Northwest Arctic Borough (Population: 7,600 | Annual growth rate*: -0.4%)
14. Southeast Fairbanks Census Area (Population: 7,000 | Annual growth rate*: 0.4%)
15. Prince of Wales-Hyder Census Area (Population: 6,000 | Annual growth rate*: -1.3%)

*From 2017 to 2022.

Alaska Business Opportunities

We hope this snapshot of the Alaska economy helps as you investigate business opportunities in The Last Frontier State! Starting a small business in Alaska 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 Alaska below!