📊 Small Business Profiles for Major Metropolitan Areas of the South 2025: Economic Summary
The “Small Business Profiles for Major Metropolitan Areas of the South 2025” report, produced by the U.S. Small Business Administration’s Office of Advocacy, provides a comprehensive look at the role and performance of small businesses across the largest Southern metropolitan areas. This summary highlights the key economic findings, trends, and implications for the broader U.S. economy, focusing on employment, industry distribution, self-employment, and income dynamics.
Overview of Small Business in the South
Small businesses are a cornerstone of the Southern metropolitan economies. In every major metro area covered, small firms (defined as those with fewer than 500 employees) make up over 90% of all businesses, often exceeding 99%. These businesses are vital employers, providing between 39% and 54% of all private-sector jobs in their respective regions.
Key Findings by Metropolitan Area
- Business Prevalence and Employment
- 🏢 In Dallas-Fort Worth-Arlington, there are 988,987 small businesses, accounting for 99.6% of all businesses and employing 1.4 million people (42.1% of the workforce).
- 🏙️ Houston-Pasadena-The Woodlands hosts 951,805 small businesses (99.6% of businesses), with 1.3 million employees (46.3%).
- 🌴 Miami-Fort Lauderdale-West Palm Beach stands out with 1.5 million small businesses (99.8%), employing 1.3 million (53.6%).
- 🎸 Nashville-Davidson–Murfreesboro–Franklin has 264,045 small businesses (99.1%), with 394,843 employees (41.4%).
- 🚚 Memphis features 157,158 small businesses (99.0%), employing 228,500 (42.0%).
- Growth Trends (2012–2022)
- 📈 All major metros saw increases in both the number of small employers and small business employment over the past decade.
- For example, Dallas-Fort Worth-Arlington’s small employers grew from 109,373 to 142,152, and employment rose from 1.1 million to 1.4 million.
- Miami’s small employer count increased from 152,217 to 190,069, with employment rising from 1.0 million to 1.3 million.
- Industry Distribution
- 🛠️ The most common sector for small businesses is Professional, Scientific, and Technical Services in most metros.
- 🏥 Health Care and Social Assistance is the top employer among small businesses in Dallas and Houston.
- 🍽️ Accommodation and Food Services leads in employment for Atlanta and Memphis.
- 🚚 Transportation and Warehousing is notably significant in Louisville.
- Self-Employment and Income
- 👤 Self-employment rates are robust, ranging from 11.3% (Memphis) to 14.3% (Nashville) of private workers.
- 💵 Median incomes for the self-employed have risen since 2018. For example, in Dallas, incorporated self-employed median income reached $76,929 (up 6%), while unincorporated self-employed earned $47,501 (up 24.4%).
- Miami’s self-employed median incomes are among the highest, reflecting the region’s entrepreneurial dynamism.
Economic Implications and Regional Nuances
- 🏆 The South’s major metros are economic engines, with small businesses driving job creation and innovation.
- 📊 The diversity of leading industries—ranging from tech and health care to hospitality and logistics—shows the adaptability and breadth of the Southern economy.
- 📈 Rising self-employment and increasing median incomes suggest a healthy entrepreneurial environment, though disparities exist between incorporated and unincorporated self-employed workers.
- ⚠️ The share of employment provided by small businesses varies, with some metros (like Miami) relying more heavily on small firms, which may indicate greater economic resilience but also potential vulnerability to sector-specific shocks.
Summary
The 2025 report underscores the critical role of small businesses in the Southern metropolitan economies. They are the backbone of job creation, economic growth, and innovation, representing over 99% of all businesses and employing up to half of the workforce in many areas. Growth in both the number of small businesses and their employment contributions over the past decade highlights their resilience and importance. Industry diversity and rising self-employment incomes point to a dynamic, evolving economic landscape. For policymakers and economic planners, supporting small business health is essential for sustained regional and national prosperity.
References:
Small Business Profiles for Major Metropolitan Areas of the South 2025, U.S. Small Business Administration