Starting a Small Business in Indiana

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

Indiana 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 Indiana 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. Iron & Steel Manufacturing (Revenue: $28.1 billion)
2. New Car Dealers (Revenue: $23.0 billion)
3. Truck, Trailer & Motor Home Manufacturing (Revenue: $22.7 billion)
4. Hospitals (Revenue: $22.3 billion)
5. SUV & Light Truck Manufacturing (Revenue: $20.6 billion)
6. Health & Medical Insurance (Revenue: $19.3 billion)
7. E-Commerce & Online Auctions (Revenue: $16.9 billion)
8. Life Insurance & Annuities (Revenue: $16.5 billion)
9. Warehouse Clubs & Supercenters (Revenue: $15.2 billion)
10. Sustainable Building Material Manufacturing (Revenue: $14.7 billion)

Indiana Sector Statistics

When starting a small business in Indiana, 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 Indiana’s GDP in 2022 were Manufacturing; Real Estate, Rentals & Leasing; and Healthcare & Social Assistance. Combined, these three sectors represented 53.3% of the state’s GDP. In 2022, the sectors that contributed most to Indiana’s GDP included:

1. Manufacturing (Value: $108.2 billion* | Annual growth: 6.2%)
2. Real Estate, Rentals & Leasing (Value: $35.0 billion* | Annual growth: 2.0%)
3. Healthcare & Social Assistance (Value: $29.8 billion* | Annual growth: 1.9%)
4. Wholesale Trade (Value: $19.8 billion* | Annual growth: 1.6%)
5. Retail Trade (Value: $19.4 billion* | Annual growth: 0.3%)
6. Finance & Insurance (Value: $19.1 billion* | Annual growth: 2.1%)
7. Professional, Scientific & Technical Services (Value: $18.3 billion* | Annual growth: 5.8%)
8. Construction (Value: $13.1 billion* | Annual growth: 1.7%)
9. Administration, Business Support & Waste Management Services (Value: $11.4 billion* | Annual growth: 7.1%)
10. Transportation & Warehousing (Value: $11.1 billion* | Annual growth: 1.0%)
11. Accommodation & Food Services Enterprises (Value: $7.4 billion* | Annual growth: 2.8%)
12. Information (Value: $7.4 billion* | Annual growth: 2.5%)
13. Other Services (except Public Administration) (Value: $6.4 billion* | Annual growth: -0.7%)
14. Management of Companies & Enterprises (Value: $6.4 billion* | Annual growth: 7.8%)
15. Utilities (Value: $5.7 billion* | Annual growth: -2.2%)

*Approximately

Indiana 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 Indiana included:

1. Marion (Population: 974,000 | Annual growth rate*: 0.4%)
2. Lake (Population: 489,100 | Annual growth rate*: 0.2%)
3. Allen (Population: 388,700 | Annual growth rate*: 0.9%)
4. Hamilton (Population: 358,200 | Annual growth rate*: 2.0%)
5. St. Joseph (Population: 272,000 | Annual growth rate*: 0.1%)
6. Elkhart (Population: 206,900 | Annual growth rate*: 0.2%)
7. Tippecanoe (Population: 199,000 | Annual growth rate*: 0.7%)
8. Vanderburgh (Population: 183,500 | Annual growth rate*: 0.3%)
9. Hendricks (Population: 179,800 | Annual growth rate*: 1.9%)
10. Porter (Population: 172,300 | Annual growth rate*: 0.4%)
11. Johnson (Population: 165,100 | Annual growth rate*: 1.4%)
12. Monroe (Population: 149,000 | Annual growth rate*: 0.3%)
13. Madison (Population: 129,900 | Annual growth rate*: 0.1%)
14. Clark (Population: 121,200 | Annual growth rate*: 0.8%)
15. Delaware (Population: 112,600 | Annual growth rate*: -0.4%)
16. Laporte (Population: 109,200 | Annual growth rate*: -0.2%)
17. Vigo (Population: 105,900 | Annual growth rate*: -0.3%)
18. Bartholomew (Population: 85,600 | Annual growth rate*: 0.7%)
19. Howard (Population: 83,000 | Annual growth rate*: 0.1%)
20. Hancock (Population: 82,500 | Annual growth rate*: 1.8%)

*From 2017 to 2022.

Indiana Business Opportunities

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