A new study has revealed the US states in which small businesses pay the best salaries.
Analysis of recently released data by business advice company Venture Smarter established the average salary for employees in businesses of fewer than 5, 5-9, and 10-19 employees.
Which states earn the most in small businesses of fewer than five employees?
California has the highest-earning employees in these tiny businesses. The average wage in such a company in the Golden State is as much as $73,500. This is a huge 32% above the nationwide average salary for such businesses, which is $55,800.
Delaware is the second-highest paying state for these miniature companies, with the average wage coming in at $69,400, 24% above the nationwide average.
Nevada employees in businesses smaller than five earn the third-highest average rate nationwide. The average salary is 22% over the nationwide average, at $68,300.
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By GlobalData| Rank | State | Ave. wage in <5 employee businesses ($) | vs US average (%) |
| 1 | California | 73,533.44 | +31.72 |
| 2 | Delaware | 69,383.70 | +24.29 |
| 3 | Nevada | 68,306.00 | +22.36 |
| 4 | Massachusetts | 66,632.23 | +19.36 |
| 5 | Alaska | 64,015.91 | +14.67 |
| 6 | Colorado | 60,948.33 | +9.18 |
| 7 | New Hampshire | 60,248.09 | +7.92 |
| 8 | New York | 60,060.32 | +7.58 |
| 9 | Maryland | 59,657.09 | +6.86 |
| 10 | Connecticut | 59,602.68 | +6.77 |
Which states earn the most in small businesses of 5-9 employees?
Massachusetts boasts the highest average wage in businesses of this size. While the US average wage is $44,900, such businesses in Massachusetts pay an average wage of $55,200. This comes in 23% above the nationwide average.
Delaware ranks second with employees earning an average of $51,800. This comes in at 15% above average in the size category of businesses that pay the lowest average wage.
California employees in businesses fewer than ten while more than five earn an average of $51,400, the third-highest rate in this category and 15% higher than the nationwide average figure.
| Rank | State | Ave. wage 5-10 employee businesses ($) | vs US average (%) |
| 1 | Massachusetts | 55,183.64 | +22.99 |
| 2 | Delaware | 51,772.51 | +15.39 |
| 3 | California | 51,375.29 | +14.51 |
| 4 | New York | 51,090.05 | +13.87 |
| 5 | Connecticut | 50,244.81 | +11.99 |
| 6 | Alaska | 49,428.13 | +10.17 |
| 7 | New Hampshire | 49,350.99 | +9.99 |
| 8 | Maryland | 48,864.52 | +8.91 |
| 9 | New Jersey | 48,459.12 | +8.01 |
| 10 | Colorado | 47,898.29 | +6.76 |
Which states earn the most in small businesses of 10-19 employees?
Massachusetts is also revealed to have the highest average wages within businesses of 10-19 employees. The nationwide average wage in businesses this size sits close to $46,800. Massachusetts exceeds this by as much as 27%, the average in the state reaching $59,600.
Alaska businesses of this size have the second-highest average pay nationwide. The state’s average of $55,500 comes in 18% above the US average.
California is the only top three state in all these size business categories. In companies of 10-19 employees, the Golden State’s average wage exceeds the nationwide average by 16%, coming in at $54,100.
| Rank | State | Ave. wage 10-19 employee businesses ($) | vs US average (%) |
| 1 | Massachusetts | 59,590.04 | +27.27 |
| 2 | Alaska | 55,473.37 | +18.48 |
| 3 | California | 54,106.66 | +15.56 |
| 4 | New York | 54,020.46 | +15.38 |
| 5 | Connecticut | 52,954.17 | +13.10 |
| 6 | New Jersey | 51,957.66 | +10.97 |
| 7 | Maryland | 51,702.50 | +10.43 |
| 8 | Illinois | 51,378.68 | +9.73 |
| 9 | Washington | 51,133.87 | +9.21 |
| 10 | New Hampshire | 50,747.25 | +8.39 |
A spokesperson from Venture Smarter spoke on the findings: “This information sheds light on the diverse financial landscapes within the country, and it is certainly interesting to establish the states that offer more lucrative opportunities for small business workers.
“Recognising and understanding these highlighted wage disparities among small businesses is crucial for businesses and workers alike. Factors such as the cost of living vary by area, and employers have a social responsibility to ensure they pay adequate and fair wages for their employees’ locations.
“Awareness of wage disparities also allows businesses to stay competitive when it comes to attracting and hiring skilled workers. ”
