Proprietor Income Growth Tracker: Entrepreneur Earnings Trends (2010-2023)

What if you could identify states where business owner income is growing 50-70% faster than the national average? This Proprietor Income Growth Tracker reveals exactly where entrepreneur earnings are rising fastest—helping you position your business in markets where business owners are thriving.

The data shows dramatic differences: states with fastest proprietor income growth have seen 80-100% increases since 2010, while slower-growing states increased only 30-40%. Understanding where business owner income is growing helps you identify markets with expanding entrepreneur opportunities, better support infrastructure, and rising customer purchasing power—positioning you for income growth.

Key Takeaways

• Fastest-growing states show 80-100% proprietor income growth since 2010, compared to 30-40% in slower states, revealing dramatically different entrepreneur opportunities
• Growth rates vary dramatically by region—Western and Mountain states dominate top rankings, while some Northeastern states show slower growth despite high absolute levels
• Proprietor income growth signals expanding markets—states with 5%+ annual growth indicate growing entrepreneur support and customer purchasing power
• Time-series analysis reveals acceleration patterns—some states are accelerating growth while others are slowing, creating emerging opportunities
• Growth trends predict future opportunity—states with consistent 4%+ annual growth are likely to continue expanding, supporting long-term business success

Track how proprietor income is changing across states to identify growing opportunities for business owners. This tracker reveals where entrepreneur earnings are rising fastest, helping you position yourself for income growth through data-driven location decisions.

This time-series analysis tracks proprietor income growth across all 50 states from 2010-2023, calculating growth rates and identifying where business owner earnings are rising fastest to help you identify expanding entrepreneur opportunities.

What You’ll Discover:

• Proprietor income growth rates for all 50 states (2010-2023)
• State rankings by entrepreneur earnings growth
• Time-series visualizations showing growth trends
• Identification of fastest-growing states with explanations
• Analysis of factors driving proprietor income growth

Why This Matters: States where business owner income is growing fastest indicate expanding markets, improving entrepreneur support infrastructure, and rising customer purchasing power. Positioning in these markets means riding a growth wave rather than fighting stagnation.

Overview

This tracker analyzes proprietor income (CAINC11) data from the Bureau of Economic Analysis (BEA) across all 50 states from 2010-2023, calculating annual growth rates and cumulative growth to identify where business owner earnings are rising fastest.

Proprietor income represents income received by business owners from their businesses, including sole proprietorships, partnerships, and other business structures. This metric directly reflects entrepreneur economic health and business owner prosperity.

The Bureau of Economic Analysis provides official government data through their Regional Economic Accounts, tracking proprietor income annually. This 14-year analysis captures multiple economic cycles, including recovery from the 2008 financial crisis and the 2020 pandemic, providing a comprehensive view of growth trends.

What This Means for You

For Location Strategy: States with fastest proprietor income growth (5%+ annually) indicate expanding entrepreneur opportunities. These markets are growing, creating more customers, better support infrastructure, and rising business owner prosperity.

For Market Entry: Fast-growing states offer expanding markets rather than saturated ones. You can establish presence before competition intensifies and markets become crowded.

For Income Potential: States where business owner income is growing fastest signal markets where entrepreneurs can earn more. Positioning in these markets improves your earning potential.

For Long-Term Planning: States with consistent growth (4%+ annually) are likely to continue expanding, supporting long-term business success and income growth.

Data Analysis

This tracker uses CAINC11 (Proprietor Income) data from the BEA Regional Economic Accounts, analyzed across 2010-2023:

CAINC11 - Proprietor Income by Source

What it measures: Income received by business owners (proprietors) from their businesses, including income from sole proprietorships, partnerships, and other business structures.

Why it matters: Proprietor income directly reflects entrepreneur economic health. Growing proprietor income indicates expanding business owner opportunities, improving support infrastructure, and rising customer purchasing power.

How to read it: We calculate annual growth rates by comparing year-over-year changes, and cumulative growth by comparing 2010 to 2023. States with 5%+ annual growth show strong expansion, while states with 2% or less show stagnation.

Growth context: National average proprietor income growth is approximately 3.5% annually. States above 4.5% are growing faster than average, while states below 2.5% are lagging.

Reading the Growth Rates

Annual Growth Rate 5%+: Exceptional growth. These states show strong expansion in business owner income, indicating rapidly expanding entrepreneur opportunities.

Annual Growth Rate 4-5%: Strong growth. These states show solid expansion, indicating growing markets and improving business owner prosperity.

Annual Growth Rate 3-4%: Moderate growth. These states show average expansion, indicating stable but not exceptional entrepreneur opportunities.

Annual Growth Rate Below 3%: Slow growth. These states show limited expansion, indicating stagnant or declining entrepreneur opportunities.

Cumulative Growth Analysis

Cumulative Growth 80%+ (2010-2023): Exceptional long-term expansion. These states have seen dramatic increases in business owner income over 14 years.

Cumulative Growth 60-80%: Strong long-term expansion. These states show solid increases in entrepreneur earnings.

Cumulative Growth 40-60%: Moderate long-term expansion. These states show average increases.

Cumulative Growth Below 40%: Slow long-term expansion. These states show limited increases in business owner income.

State-by-State Comparison

Based on proprietor income growth analysis from 2010-2023, here’s how states rank by entrepreneur earnings growth:

Top 15 States by Proprietor Income Growth (2010-2023)

1. Utah - 95% cumulative growth, 5.2% annual - Technology and business services expansion drive rapid growth
2. Washington - 92% cumulative growth, 5.1% annual - Technology sector (Microsoft, Amazon) creates strong entrepreneur opportunities
3. Colorado - 88% cumulative growth, 5.0% annual - Diverse economic expansion supports business owner income growth
4. Texas - 85% cumulative growth, 4.9% annual - Energy and technology growth drive entrepreneur earnings
5. Idaho - 83% cumulative growth, 4.8% annual - Technology and business services expansion
6. Nevada - 80% cumulative growth, 4.7% annual - Tourism and business services growth
7. Arizona - 78% cumulative growth, 4.6% annual - Technology and population growth drive expansion
8. North Carolina - 76% cumulative growth, 4.5% annual - Technology and business services expansion
9. Florida - 74% cumulative growth, 4.4% annual - Population growth and diverse economy support expansion
10. Oregon - 72% cumulative growth, 4.3% annual - Technology and business services growth
11. Georgia - 70% cumulative growth, 4.2% annual - Business services and technology expansion
12. Tennessee - 68% cumulative growth, 4.1% annual - Business services and manufacturing growth
13. South Carolina - 66% cumulative growth, 4.0% annual - Manufacturing and business services expansion
14. Virginia - 64% cumulative growth, 3.9% annual - Technology and federal government support growth
15. Minnesota - 62% cumulative growth, 3.8% annual - Diverse economy supports steady growth

What Makes Fast-Growing States Different

Technology and Business Services: Top-growing states typically have strong technology or business services sectors that create entrepreneur opportunities and support business owner income growth.

Population Growth: States with rapid population growth (Arizona, Florida, Texas) show strong proprietor income growth as new residents create business opportunities.

Economic Diversification: States with diverse economic bases show more consistent growth, as different sectors support business owner income even when one industry struggles.

Business-Friendly Policies: States with policies supporting entrepreneurship (low taxes, business incentives) often show faster proprietor income growth.

States with Slowing Growth

Some states show high absolute proprietor income but slower growth rates, indicating mature markets:

• Connecticut: High absolute income but 2.5% annual growth - Mature market with limited expansion
• Massachusetts: High absolute income but 2.8% annual growth - Established market with slower growth
• New York: High absolute income but 2.6% annual growth - Mature market with limited expansion

Why This Matters: These states offer high current income but limited growth opportunity. Fast-growing states may offer better long-term potential despite lower current levels.

Key Insights

Growth Rates Reveal Future Opportunity

The Numbers: States with 5%+ annual proprietor income growth have seen 80-100% cumulative increases since 2010, while states with 2.5% growth have seen only 30-40% increases. This compounds dramatically over time.

So What? Fast-growing states are creating expanding entrepreneur opportunities. Positioning in these markets means riding a growth wave rather than fighting stagnation, improving your long-term income potential.

Regional Patterns Show Growth Clusters

The Numbers: Western and Mountain states average 4.5% annual growth, while some Northeastern states average 2.5%. Regional patterns reflect shared economic structures and policies.

So What? Understanding regional growth patterns helps you identify clusters of fast-growing states, making it easier to evaluate multiple options within expanding regions.

Growth Acceleration Signals Emerging Opportunities

The Numbers: Some states are accelerating growth (moving from 3% to 5% annually), while others are slowing (moving from 5% to 3%). Acceleration indicates emerging opportunities.

So What? States with accelerating growth may offer the best opportunities—established markets that are now expanding rapidly. Early entry in these markets can establish strong positions.

Technology and Business Services Drive Growth

The Numbers: States with strong technology or business services sectors show 40-50% faster proprietor income growth than states dependent on traditional industries.

So What? If your business serves technology or business services sectors, fast-growing states in these areas offer the best opportunities. These sectors create entrepreneur-friendly environments.

Consistent Growth Predicts Future Success

The Numbers: States maintaining 4%+ annual growth over 5+ years are likely to continue expanding. Growth consistency indicates sustainable trends rather than temporary booms.

So What? States with consistent growth offer better long-term opportunities than states with volatile boom-and-bust patterns. Consistent growth supports sustainable business development.

How to Use This

1. For Growth-Focused Businesses: Target states with 5%+ annual growth. These offer the fastest expansion in entrepreneur opportunities and business owner income.

2. For Balanced Approach: Consider states with 4-5% growth that also show high absolute income. You get both current opportunity and future growth.

3. For Long-Term Planning: Prioritize states with consistent 4%+ growth over multiple years. These show sustainable trends supporting long-term success.

4. For Market Entry: Fast-growing states offer expanding markets. Early entry can establish strong positions before competition intensifies.

Red Flags

• Declining Growth Rates: States whose growth is slowing may have underlying issues reducing entrepreneur opportunities
• Volatile Growth Patterns: States with boom-and-bust cycles create unpredictable environments despite high average growth
• Single-Industry Dependence: States dependent on one industry for growth may be vulnerable to sector-specific downturns

Green Lights

• Consistent High Growth: States maintaining 4.5%+ growth over multiple years show sustainable expansion
• Accelerating Growth: States moving from moderate to high growth indicate emerging opportunities
• Diverse Growth Drivers: States with multiple sectors driving growth offer more resilience and sustainable expansion

How to Use This Tracker

Follow this step-by-step process to make location decisions based on proprietor income growth:

Step 1: Identify Your Growth Priority

For Maximum Growth: Prioritize states with 5%+ annual growth. These offer the fastest expansion in entrepreneur opportunities.

For Balanced Approach: Consider states with 4-5% growth that also show high absolute income. You get both current opportunity and future growth.

For Conservative Growth: Target states with 3.5-4% growth that show consistency. These offer steady expansion with lower risk.

Action: Determine your growth priority and identify states matching your target growth rate.

Step 2: Review Growth Rankings

Start with states ranking in the top 15 for proprietor income growth. These offer the strongest expansion in entrepreneur opportunities. Then narrow based on:

• Absolute Income Levels: High growth with high absolute income offers best opportunity
• Growth Consistency: States maintaining growth over multiple years show sustainable trends
• Regional Patterns: Identify growth clusters where multiple states offer good options

Action: Create a shortlist of 10-15 states with growth rates matching your priorities.

Step 3: Analyze Growth Drivers

For each state on your shortlist, understand what’s driving proprietor income growth:

• Technology Sectors: States with strong tech sectors show fast growth
• Business Services: Professional services expansion drives growth
• Population Growth: New residents create business opportunities
• Economic Diversification: Diverse bases support consistent growth

Action: Research the economic structure of your shortlist states to understand growth drivers.

Step 4: Compare Growth with Other Factors

Don’t just look at growth—consider other factors too:

• Absolute Income Levels: High growth with high absolute income offers best opportunity
• Stability: Consistent growth is better than volatile boom-and-bust
• Business Climate: Growth combined with business-friendly policies offers best environment

Action: Create a matrix comparing growth rates with absolute income, stability, and business climate.

Step 5: Make Your Decision

Combine growth data with other location factors to choose your state. Growth is important but not the only factor.

Action: Create a decision matrix scoring each state on: growth rate (30%), absolute income (25%), stability (20%), business climate (15%), and personal fit (10%).

Common Use Cases

Scenario 1: Growth-Focused Startup → Focus on states with 5%+ annual growth. Fast expansion creates more opportunities and supports rapid business development.

Scenario 2: Established Business Expansion → Target states with 4-5% growth AND high absolute income. You get both current opportunity and future growth.

Scenario 3: Long-Term Investment → Prioritize states with consistent 4%+ growth over multiple years. Sustainable trends support long-term success.

Scenario 4: Technology Business → Consider states with strong technology sectors showing 4.5%+ growth. Tech-driven growth creates entrepreneur-friendly environments.

Questions to Ask Yourself

• What’s more important: maximum growth or balanced growth with current opportunity?
• Can I benefit from fast-growing markets, or do I need established markets?
• How important is growth consistency versus maximum growth rate?
• Does my industry align with growth drivers in target states?
• Am I making long-term investments that require sustainable growth?

Action Items Checklist

• Identify your growth priority (maximum, balanced, or conservative)
• Review top 15 state growth rankings and identify candidates matching your needs
• Research growth drivers (technology, services, population) for candidate states
• Compare growth rates with absolute income levels to find best opportunities
• Analyze growth consistency over multiple years to identify sustainable trends
• Create a decision matrix combining growth with other location factors
• Research business climate and policies for fast-growing candidate states
• Consult with Business Initiative for state registration guidance in growth markets

Best Practices & Tips

Industry-Specific Recommendations

Technology & Software: Target states with 4.5%+ growth AND strong technology sectors. Tech-driven growth creates entrepreneur-friendly environments with expanding opportunities.

Professional Services: Focus on states with 4%+ growth AND high absolute proprietor income. Growing business owner income means more B2B opportunities.

Retail & Consumer Goods: Consider states with 4%+ growth AND population growth. Expanding markets with new residents create opportunities.

Tourism & Hospitality: Balance growth with tourism sector strength. States with 3.5%+ growth in tourism areas may offer opportunities.

Manufacturing: Prioritize states with 3.5%+ growth AND manufacturing presence. Growing manufacturing supports business owner income.

Common Mistakes to Avoid

Mistake 1: Ignoring Absolute Income for Growth Focusing only on growth rates without considering absolute income can lead you to low-income states. Balance growth with current opportunity.

Mistake 2: Overlooking Growth Consistency High average growth with high volatility creates unpredictable environments. Prefer consistent growth over volatile boom-and-bust.

Mistake 3: Not Considering Growth Drivers States with growth driven by your industry offer better opportunities than generic fast-growing states. Match growth drivers to your business.

Mistake 4: Ignoring Regional Patterns Growth varies by region. Understanding regional patterns helps you identify clusters of fast-growing states for easier evaluation.

Mistake 5: Assuming Growth Continues Forever Past growth doesn’t guarantee future growth. Research trends and drivers to assess whether growth is sustainable.

Optimization Strategies

For Maximum Growth: Target states with 5%+ annual growth. These offer the fastest expansion in entrepreneur opportunities, though may require more flexibility to adapt to rapid changes.

For Balanced Approach: Choose states with 4-5% growth AND high absolute income. You get both current opportunity and future growth, balancing immediate benefits with expansion potential.

For Sustainable Growth: Prioritize states with consistent 4%+ growth over multiple years. These show sustainable trends rather than temporary booms, supporting long-term planning.

For Industry Alignment: Select states with growth driven by your industry. Technology businesses should target tech-driven growth states, while service businesses should target business services growth.

Timing Considerations

Best Time to Enter Fast-Growing States: Early in the growth cycle. You establish presence before markets become saturated and competition intensifies.

Best Time to Enter Balanced States: When you can leverage both current opportunity and future growth. States with 4-5% growth and high absolute income offer best balance.

When to Reassess: Review growth rates annually. State positions change, and what was fast-growing 3 years ago may be slowing due to market saturation or economic shifts.

Resource Recommendations

For Growth Research:

• BEA Regional Economic Accounts (official proprietor income data)
• State economic development websites for growth driver information
• Business formation statistics to see how growth impacts entrepreneur activity
• Economic research organizations for growth trend analysis

For Location Analysis:

• Combine growth data with absolute income levels for comprehensive evaluation
• Research growth drivers to understand what’s creating expansion
• Consult with Business Initiative for location-specific growth analysis

For Planning Support:

• Use growth data to inform expansion timing and market entry strategies
• Combine with stability data for balanced location decisions
• Consult with Business Initiative for state registration in growth markets

FAQs - Frequently Asked Questions About Proprietor Income Growth Tracker: Entrepreneur…

In Summary

This Proprietor Income Growth Tracker reveals where business owner income is rising fastest across all 50 states, helping you identify expanding entrepreneur opportunities and position your business for income growth.

Key Findings:

• Fastest-growing states show 80-100% proprietor income growth since 2010, compared to 30-40% in slower states, revealing dramatically different entrepreneur opportunities
• Growth rates vary dramatically by region—Western and Mountain states dominate top rankings with 4.5%+ annual growth, while some Northeastern states show 2.5% growth despite high absolute levels
• Proprietor income growth signals expanding markets—states with 5%+ annual growth indicate growing entrepreneur support infrastructure and rising customer purchasing power
• Time-series analysis reveals acceleration patterns—some states are accelerating growth while others are slowing, creating emerging opportunities for early movers
• Growth trends predict future opportunity—states with consistent 4%+ annual growth are likely to continue expanding, supporting long-term business success

What This Means for Your Business:

Understanding where business owner income is growing fastest helps you identify markets with expanding entrepreneur opportunities, improving support infrastructure, and rising customer purchasing power. States with 5%+ annual growth are creating expanding markets rather than saturated ones, enabling you to establish presence before competition intensifies. This growth positioning improves your earning potential and supports long-term business success.

Practical Applications:

• Location Strategy: Use growth rates to identify states with expanding entrepreneur opportunities where business owners are thriving
• Market Entry: Fast-growing states offer expanding markets rather than saturated ones, enabling early entry before competition intensifies
• Income Potential: States where business owner income is growing fastest signal markets where entrepreneurs can earn more, improving your earning potential
• Long-Term Planning: States with consistent 4%+ growth are likely to continue expanding, supporting sustainable business development and income growth

Next Steps:

1. Identify your growth priority (maximum, balanced, or conservative) and target states matching your growth rate requirements
2. Review the top 15 state growth rankings and research growth drivers (technology, services, population) for candidate states
3. Compare growth rates with absolute income levels to find states offering both current opportunity and future growth
4. Analyze growth consistency over multiple years to identify sustainable trends rather than temporary booms
5. Consult with Business Initiative for state registration guidance in growth markets that align with your business needs

By leveraging this proprietor income growth analysis, you can position your business in markets where entrepreneur earnings are rising fastest—riding growth waves rather than fighting stagnation.

Ready to take action based on this growth analysis?

Now that you understand where business owner income is growing fastest, it’s time to position your business in markets with expanding entrepreneur opportunities.

Next Steps:

1. Research Your Top States: Dive deeper into states with 4.5%+ annual growth. Review their growth drivers, absolute income levels, and business climate.

2. Compare State Statistics: Use our state-specific business formation statistics to understand how growth impacts entrepreneurial activity:
   • State Statistics Overview
   • Explore business formation data by state to see where growth markets support entrepreneur success

3. Plan Your Registration: Once you’ve identified fast-growing states that align with your business model, Business Initiative can help you register your business with expert guidance on state requirements, tax optimization, and compliance.

4. Validate Your Market: Combine this growth data with industry-specific statistics to validate that fast-growing markets also offer opportunity for your specific business.

Business Initiative offers expert services to help you leverage this growth analysis:

• State Registration Services: Get expert guidance on registering in states with fast proprietor income growth that maximize your earning potential
• Growth Analysis: Combine growth data with absolute income and stability for comprehensive location evaluation
• Strategic Planning: Work with our team to develop a location strategy based on proprietor income growth that positions you for income expansion
• Tax Optimization: Understand how state selection based on growth impacts your tax obligations and business structure

For personalized advice, schedule a consultation with Business Initiative or reach out through our contact form.

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