How Much Small Businesses Pay Their Employees in Every State

Running a small business is rarely straightforward, particularly throughout inflationary intervals. In 2023, when the common rate of inflation was 4.1%, 35% of small companies reported decreasing workers because of growing prices, in keeping with a survey of 1,000 small enterprise house owners carried out by OnePoll on behalf of Melio.

Originally of 2024, 22 states and 38 counties and cities raised their minimum wages, impacting 10 million employees throughout the nation, per the American Institute for Economic Research — and the various small businesses who’ve them on their payroll.

Associated: Here’s What Millions of Small Businesses Have in Common, According to a New Survey

The place do small business owners need to pay their workers probably the most? The small enterprise lending firm OnDeck determined to search out out extra about this by analyzing U.S. Census Bureau knowledge for companies with fewer than 500 workers.

In keeping with the analysis, Massachusetts, California and New York are the highest three states the place small enterprise house owners can count on to pay their workers probably the most, averaging annual salaries of $72,151, $67,237 and $66,924, respectively.

On the opposite finish of the spectrum, small enterprise house owners pay their workers the bottom common annual wage in Mississippi — $39,310, in keeping with the information.

Associated: A Survey Asked Small Business Owners What They Really Care About in the 2024 Election — The Results Were Surprising

Try the infographic beneath to see the complete rating compiled from OnDeck’s analysis:

^{Picture Credit score: Courtesy of OnDeck}