Starting a Small Business in Minnesota

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

Minnesota 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 Minnesota economy's most significant 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. Health & Medical Insurance (Revenue: $62.6 billion)
2. Medical Supplies Wholesaling (Revenue: $34.3 billion)
3. Life Insurance & Annuities (Revenue: $33.6 billion)
4. Third-Party Administrators & Insurance Claims Adjusters  (Revenue: $31.2 billion)
5. Commercial Banking (Revenue: $28.5 billion)
6. Hospitals (Revenue: $27.6 billion)
7. Automobile Wholesaling (Revenue: $23.0 billion)
8. New Car Dealers  (Revenue: $21.0 billion)
9. Wholesale Trade Agents & Brokers (Revenue: $19.5 billion)
10. Corn, Wheat & Soybean Wholesaling (Revenue: $18.0 billion)

Minnesota Sector Statistics

When starting a small business in Minnesota, 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 contributing most to Minnesota's GDP in 2022 were Manufacturing; Real Estate, Rentals & Leasing; and Healthcare & Social Assistance. Combined, these three sectors represented 38.8% of the state's GDP. In 2022, the sectors that contributed most to Minnesota's GDP included:

1. Manufacturing (Value: $54.1 billion* | Annual growth: 4.3%)
2. Real Estate, Rentals & Leasing (Value: $38.1 billion* | Annual growth: 0.9%)
3. Healthcare & Social Assistance (Value: $34.4 billion* | Annual growth: 2.9%)
4. Finance & Insurance (Value: $29.4 billion* | Annual growth: 4.2%)
5. Professional, Scientific & Technical Services (Value: $26.2 billion* | Annual growth: 3.4%)
6. Wholesale Trade (Value: $25.1 billion* | Annual growth: 1.2%)
7. Management of Companies & Enterprises (Value: $18.3 billion* | Annual growth: 5.8%)
8. Retail Trade (Value: $18.0 billion* | Annual growth: -1.1%)
9. Information (Value: $15.3 billion* | Annual growth: 3.2%)
10. Construction (Value: $14.1 billion* | Annual growth: 3.7%)
11. Agriculture, Forestry, Fishing & Hunting (Value: $10.9 billion* | Annual growth: 12.1%)
12. Administration, Business Support & Waste Management Services (Value: $9.6 billion* | Annual growth: 6.8%)
13. Transportation & Warehousing (Value: $7.6 billion* | Annual growth: -5.4%)
14. Accommodation & Food Services (Value: $6.3 billion* | Annual growth: 2.2%)
15. Other Services (except Public Administration)  (Value: $5.8 billion* | Annual growth: -1.7%)

*Approximately

Minnesota 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 2023, counties with the highest populations in Minnesota included:

1. Hennepin (Population: 1.3m | Annual growth rate*: 14.57%)
2. Ramsey (Population: 565,465 | Annual growth rate*: 11.17%)
3. Dakota (Population: 452,281 | Annual growth rate*: 13.48%)
4. Anoka (Population: 373,799 | Annual growth rate*: 12.98%)
5. Washington (Population: 276,397 | Annual growth rate*: 16.07%)
6. St. Louis (Population: 200,231 | Annual growth rate*: 0%)
7. Olmsted (Population: 168,427 | Annual growth rate*: 16.76%)
8. Stearns (Population: 160,587 | Annual growth rate*: 6.6%)
9. Scott (Population: 157,228 | Annual growth rate*: 21.01%)
10. Wright (Population: 146,329 | Annual growth rate*: 17.34%)
11. Carver (Population: 111,686 | Annual growth rate*: 22.68%)
12. Sherburne (Population: 99,787 | Annual growth rate*: 12.75%)
13. Blue Earth (Population: 70,642 | Annual growth rate*: 10.36%)
14. Rice (Population: 67,985 | Annual growth rate*: 5.99%)
15. Clay (Population: 9,200 | Annual growth rate*: 13.92%)

*From 2010 to 2023.

Minnesota Business Opportunities

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