Kentucky small businesses thrive in these counties

In 2021, the IRS received a whopping 5.4 million business applications—an all-time high since the U.S. government began tracking this data in 2004. The year with the second-highest number of new business applications? 2020. Today, small businesses employ nearly half of the nation’s workers, according to a Chamber of Commerce report.

It’s fair to say that the past few years have been banner years for small businesses, but what about regional differences? The business climate in a small town in Texas is likely not the same as a small town in Connecticut. The Chamber of Commerce report found that the Midwest was the most business-friendly region, thanks to the relatively low cost of living, well-educated workforce, and regulations lowering taxes and easing zoning restrictions for businesses.

Of course, the East and West coasts also have plenty to offer, from California’s Silicon Valley and Hollywood studios to New York’s financial hub to Massachusetts’ prominence in the aerospace, defense, and information technology industries. A few states—including Delaware, Wyoming, and Nevada—even allow you to incorporate your business within their borders without ever setting foot there.

For even more specific data, let’s take it a step further by analyzing counties. Are certain counties more friendly to small businesses than others? To pinpoint the areas where small businesses abound, altLINE used Census Bureau data to find the counties in Kentucky with the highest concentration of small businesses in 2021, calculated as small establishments per 1,000 residents. Small establishments are defined as those with fewer than 500 employees. Counties with fewer than 1,000 residents were excluded from the analysis, as well as counties for which the Census Bureau didn’t have population estimates.

Another important factor to consider: States where nonresidents are allowed to incorporate businesses will also have a higher ratio of small businesses to residents since not all small businesses are actually operated by people living in that state.

Taking a close look at the type of counties that topped the list in each state also reveals some interesting trends. World-class vacation destinations are well represented on the lists of each state, perhaps because tourists are looking to get a sense of how the locals live through small businesses like restaurants, bakeries, bars, and boutiques.

While the top counties in each state do include a few major cities, less populated counties with smaller towns are much more common. Although most of the nation’s small businesses are located in major metropolitan areas, those that are located in rural areas tend to be more stable—possibly due to loyalty from local residents or the absence of competition from large corporations.

Keep reading to discover the counties in Kentucky with the highest concentration of small businesses, and see how it compares across 50 states. It just might give you inspiration for your next endeavor.

This story features data reporting by Paxtyn Merten, writing by Annalise Mantz, and is part of a series utilizing data automation across 50 states.

Brian Kenney // Shutterstock

#49. Cumberland County

– Total small business establishments: 102 (17.3 per 1,000 residents)
– Share of establishments that are small: 99.0%
– 2021 population: 5,892

Canva

#49. McLean County

– Total small business establishments: 158 (17.3 per 1,000 residents)
– Share of establishments that are small: 98.8%
– 2021 population: 9,127

Canva

#48. Fulton County

– Total small business establishments: 116 (17.8 per 1,000 residents)
– Share of establishments that are small: 98.3%
– 2021 population: 6,513

Canva

#47. Clinton County

– Total small business establishments: 168 (18.1 per 1,000 residents)
– Share of establishments that are small: 98.8%
– 2021 population: 9,288

Canva

#46. Barren County

– Total small business establishments: 811 (18.2 per 1,000 residents)
– Share of establishments that are small: 99.9%
– 2021 population: 44,599

Canva

#45. Monroe County

– Total small business establishments: 205 (18.2 per 1,000 residents)
– Share of establishments that are small: 99.5%
– 2021 population: 11,269

Canva

#44. Bourbon County

– Total small business establishments: 368 (18.2 per 1,000 residents)
– Share of establishments that are small: 99.7%
– 2021 population: 20,218

Canva

#43. Carlisle County

– Total small business establishments: 87 (18.3 per 1,000 residents)
– Share of establishments that are small: 98.9%
– 2021 population: 4,760

Canva

#42. Campbell County

– Total small business establishments: 1,712 (18.4 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 92,856

Gabriel Quiles // Shutterstock

#41. Russell County

– Total small business establishments: 336 (18.5 per 1,000 residents)
– Share of establishments that are small: 99.7%
– 2021 population: 18,195

Canva

#40. Madison County

– Total small business establishments: 1,733 (18.5 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 93,473

Canva

#39. Union County

– Total small business establishments: 245 (18.6 per 1,000 residents)
– Share of establishments that are small: 98.8%
– 2021 population: 13,166

Canva

#38. Graves County

– Total small business establishments: 691 (18.9 per 1,000 residents)
– Share of establishments that are small: 99.9%
– 2021 population: 36,634

Canva

#37. Kenton County

– Total small business establishments: 3,206 (18.9 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 169,734

Canva

#36. Bell County

– Total small business establishments: 452 (19.0 per 1,000 residents)
– Share of establishments that are small: 99.3%
– 2021 population: 23,765

Cody Thane Prater // Shutterstock

#35. Pike County

– Total small business establishments: 1,093 (19.1 per 1,000 residents)
– Share of establishments that are small: 99.9%
– 2021 population: 57,362

JNix // Shutterstock

#34. Laurel County

– Total small business establishments: 1,196 (19.1 per 1,000 residents)
– Share of establishments that are small: 99.5%
– 2021 population: 62,592

Canva

#32. Lyon County

– Total small business establishments: 162 (19.2 per 1,000 residents)
– Share of establishments that are small: 100.0%
– 2021 population: 8,436

Stephen Bailey // Shutterstock

#32. Oldham County

– Total small business establishments: 1,310 (19.2 per 1,000 residents)
– Share of establishments that are small: 99.9%
– 2021 population: 68,232

Canva

#31. Montgomery County

– Total small business establishments: 544 (19.3 per 1,000 residents)
– Share of establishments that are small: 99.6%
– 2021 population: 28,231

Nate Hovee // Shutterstock

#30. Floyd County

– Total small business establishments: 687 (19.5 per 1,000 residents)
– Share of establishments that are small: 100.0%
– 2021 population: 35,300

Canva

#29. Perry County

– Total small business establishments: 544 (19.5 per 1,000 residents)
– Share of establishments that are small: 99.6%
– 2021 population: 27,906

Canva

#28. Ballard County

– Total small business establishments: 150 (19.5 per 1,000 residents)
– Share of establishments that are small: 99.3%
– 2021 population: 7,690

Canva

#27. Hopkins County

– Total small business establishments: 887 (19.7 per 1,000 residents)
– Share of establishments that are small: 99.7%
– 2021 population: 45,096

Canva

#26. Washington County

– Total small business establishments: 238 (19.7 per 1,000 residents)
– Share of establishments that are small: 98.3%
– 2021 population: 12,091

Canva

#25. Hardin County

– Total small business establishments: 2,211 (19.8 per 1,000 residents)
– Share of establishments that are small: 99.6%
– 2021 population: 111,766

Canva

#24. Simpson County

– Total small business establishments: 392 (19.9 per 1,000 residents)
– Share of establishments that are small: 99.5%
– 2021 population: 19,716

Canva

#23. Carroll County

– Total small business establishments: 222 (20.4 per 1,000 residents)
– Share of establishments that are small: 98.7%
– 2021 population: 10,884

Canva

#22. Clark County

– Total small business establishments: 755 (20.5 per 1,000 residents)
– Share of establishments that are small: 99.7%
– 2021 population: 36,925

Canva

#21. Caldwell County

– Total small business establishments: 263 (20.8 per 1,000 residents)
– Share of establishments that are small: 98.5%
– 2021 population: 12,644

Ivelin Denev // Shutterstock

#20. Woodford County

– Total small business establishments: 566 (20.9 per 1,000 residents)
– Share of establishments that are small: 100.0%
– 2021 population: 27,090

Ryan_hoel // Shutterstock

#19. Nelson County

– Total small business establishments: 986 (20.9 per 1,000 residents)
– Share of establishments that are small: 99.6%
– 2021 population: 47,149

Real Window Creative // Shutterstock

#18. Warren County

– Total small business establishments: 2,903 (21.2 per 1,000 residents)
– Share of establishments that are small: 99.7%
– 2021 population: 137,148

ScottymanPhoto // Shutterstock

#17. Rowan County

– Total small business establishments: 526 (21.4 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 24,586

Canva

#16. Pulaski County

– Total small business establishments: 1,434 (21.9 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 65,561

Canva

#15. Marshall County

– Total small business establishments: 698 (21.9 per 1,000 residents)
– Share of establishments that are small: 100.0%
– 2021 population: 31,820

Canva

#14. Shelby County

– Total small business establishments: 1,068 (22.0 per 1,000 residents)
– Share of establishments that are small: 99.6%
– 2021 population: 48,580

The American Explorer // Shutterstock

#13. Henderson County

– Total small business establishments: 978 (22.0 per 1,000 residents)
– Share of establishments that are small: 99.6%
– 2021 population: 44,417

Canva

#12. Boone County

– Total small business establishments: 3,132 (22.7 per 1,000 residents)
– Share of establishments that are small: 99.3%
– 2021 population: 137,760

Canva

#11. Jessamine County

– Total small business establishments: 1,223 (22.8 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 53,609

hw22 // Shutterstock

#10. Taylor County

– Total small business establishments: 599 (22.9 per 1,000 residents)
– Share of establishments that are small: 99.3%
– 2021 population: 26,158

Canva

#9. Daviess County

– Total small business establishments: 2,369 (23.0 per 1,000 residents)
– Share of establishments that are small: 99.6%
– 2021 population: 103,140

Real Window Creative // Shutterstock

#8. Franklin County

– Total small business establishments: 1,201 (23.2 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 51,683

Canva

#7. Calloway County

– Total small business establishments: 872 (23.3 per 1,000 residents)
– Share of establishments that are small: 99.5%
– 2021 population: 37,489

Canva

#6. Mason County

– Total small business establishments: 416 (24.5 per 1,000 residents)
– Share of establishments that are small: 100.0%
– 2021 population: 16,965

Patrick Jennings // Shutterstock

#5. Boyle County

– Total small business establishments: 760 (24.8 per 1,000 residents)
– Share of establishments that are small: 99.2%
– 2021 population: 30,649

Rosemarie Mosteller // Shutterstock

#4. Boyd County

– Total small business establishments: 1,198 (25.1 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 47,767

f11photo // Shutterstock

#3. Jefferson County

– Total small business establishments: 20,039 (25.8 per 1,000 residents)
– Share of establishments that are small: 99.6%
– 2021 population: 777,378

Canva

#2. Fayette County

– Total small business establishments: 8,925 (27.9 per 1,000 residents)
– Share of establishments that are small: 99.7%
– 2021 population: 320,473

Canva

#1. McCracken County

– Total small business establishments: 2,033 (30.1 per 1,000 residents)
– Share of establishments that are small: 99.8%
– 2021 population: 67,612

This story originally appeared on altLINE and was produced and
distributed in partnership with Stacker Studio.