The more than 400,000 small businesses in Louisiana are responsible for employing around 53 percent of the state’s workers, according to the US. Small Business Administration.
The SBA released its annual profiles of Small Business across the nation. Louisiana’s 2019 Small Business profile showed that the number of small businesses in the state increased by 10,000 from 2015 to 2016, but the economy’s growth rate was not as significant.
Louisiana grew at a rate of 1.9 percent in the third quarter of 2018, significantly slower than the overall U.S. growth rate of 3.4 percent. And although more than half of Louisiana workers found employment with small businesses, as of February 2019, the unemployment rate was 4.9 percent. This is up from 4.7 percent in 2018 and higher than the national rate of 3.8 percent.
These rates may also be reflected in the number of jobs in Louisiana. In 2016, small businesses lost 10,105 net jobs, but firms with fewer than 20 employees did experience some growth, adding 9,751 net jobs.
Overall, Louisiana small businesses account for 99.5 percent of the state’s business and its best industries for employment include health care and social assistance, food services, and retail trade.
