Market Size Analyzer: Business Counts by Industry and Location (2022)

What if you could see that California has 1.02 million businesses while Wyoming has just 23,196? This County Business Patterns analysis reveals exactly where market opportunities exist—and how you can position yourself in markets with the right business density for your industry.

The data shows dramatic differences: top states like California, Texas, and Florida have 600,000+ establishments, while smaller states have fewer than 10,000. This isn’t just about geography—it’s about making strategic location decisions that directly impact your market size, competition levels, and growth potential.

Key Takeaways

• Top states have 40-50x more businesses than smaller states—California (1.02M) vs. Wyoming (23,196) reveals massive market size differences
• Business density varies dramatically by location—urban counties can have 10,000+ establishments while rural counties have fewer than 100
• Market size directly impacts opportunity—larger markets offer more customers but also more competition
• Industry concentration patterns matter—some locations have 5-10x more businesses in specific industries than others
• Location strategy determines market access—choosing the right county can mean the difference between 50 competitors and 500

Analyze market size by industry and location to understand your market potential. This tool reveals business counts t

This analysis examines County Business Patterns (CBP) data from the U.S. Census Bureau to show business counts, employment, and payroll by industry and location. You’ll discover which states and counties have the most businesses in your industry, how market size varies by location, and where opportunities exist for new market entry.

What You’ll Discover:

• State rankings by total business establishments (2022)
• County-level business density patterns
• Industry-specific market size by location
• Competitor count estimates for your industry
• Market opportunity identification (underserved vs. oversaturated markets)

Why This Matters: Understanding market size at the county and state level helps you make informed decisions about where to locate your business, assess competition levels, and identify underserved markets with growth potential.

Market Size Gaps Are Massive

The Numbers: The difference between the top state (California, 1.02M establishments) and smaller states (Wyoming, 23,196 establishments) is approximately 1.0 million businesses—a 44x difference. For a business owner, this translates to dramatically different market sizes, customer bases, and competitive landscapes.

So What? If you’re operating in California, you have access to a market with 1.02 million potential business partners, customers, and suppliers. In Wyoming, that number is 23,196. This directly impacts networking opportunities, B2B sales potential, and market access.

Business Density Varies Dramatically by County

The Numbers: Urban counties typically have 100-1,000x more businesses than rural counties. Even within the same state, county-level differences can be 50-100x. For example, major metropolitan counties often have 50,000+ establishments, while rural counties may have fewer than 1,000.

So What? County selection matters more than state selection for many businesses. Choosing the right county can mean the difference between 50 competitors and 5,000 competitors in your industry. This directly impacts your ability to stand out, pricing power, and market share potential.

Industry Concentration Creates Opportunities

The Numbers: Some counties have 5-10x more businesses in specific industries than others. For example, technology-heavy counties may have 10%+ of businesses in tech, while rural counties have <1%.

So What? Industry concentration signals where your target customers, suppliers, and talent are located. Operating in an industry cluster can provide networking advantages, talent access, and customer density that accelerates growth.

Market Size Doesn’t Always Mean Opportunity

The Numbers: Large markets (100,000+ establishments) often have 50-100 competitors in your industry, while smaller markets (1,000-10,000 establishments) may have 5-10 competitors. However, smaller markets may have limited customer bases.

So What? The best location balances market size with competition levels. A market with 10,000 establishments and 5 competitors in your industry may offer better opportunity than one with 100,000 establishments and 500 competitors.

How to Use This

1. For Location Strategy: Compare establishment counts across your candidate counties. Target markets with moderate density (100-1,000 establishments) that match your growth stage and competitive capacity.

2. For Market Sizing: Use establishment counts to estimate market size. Multiply by average revenue per establishment in your industry to estimate total market value.

3. For Competitive Analysis: Count establishments in your NAICS code to see exact competitor numbers. This informs pricing strategy, marketing needs, and differentiation requirements.

4. For Expansion Planning: Prioritize counties with growing establishment counts (compare 2022 to 2018-2021). Growing markets offer expansion opportunity rather than saturation.

Red Flags

• Oversaturated Markets: Counties with 1,000+ establishments in your industry may have intense competition and limited market share potential
• Declining Markets: Counties with decreasing establishment counts over time may signal market contraction
• Extreme Density: Counties with 0.10+ establishments per capita may have oversupply and pricing pressure
• Single-Industry Dependence: Counties where one industry represents 50%+ of establishments may be vulnerable to industry downturns

Green Lights

• Moderate Density: Counties with 0.05-0.08 establishments per capita offer balanced opportunity and competition
• Growing Markets: Counties with 5%+ annual establishment growth signal expansion and opportunity
• Industry Clusters: Counties with 5-10% of establishments in your industry offer customer density and networking advantages
• Diverse Markets: Counties with no single industry representing >20% of establishments offer stability and multiple opportunity sources

How to Use This Data

Follow this step-by-step process to make data-driven location and market entry decisions:

Step 1: Identify Your Target Industry and NAICS Code

For Industry-Specific Analysis: Determine your NAICS code (North American Industry Classification System). This allows you to filter CBP data to see exact competitor counts in your industry.

For Multi-Industry Businesses: If you serve multiple industries, analyze each relevant NAICS code separately to understand market size for each segment.

Action: Look up your NAICS code at census.gov/naics. Common codes include:

• 54: Professional, Scientific, and Technical Services
• 62: Health Care and Social Assistance
• 72: Accommodation and Food Services
• 44-45: Retail Trade

Step 2: Analyze Market Size by Geography

Compare establishment counts across your candidate locations:

• State-level: Get broad market size comparison (e.g., California vs. Texas)
• County-level: Identify specific markets within states (e.g., major metropolitan counties vs. suburban or rural counties)
• Metro-level: Analyze metropolitan areas for urban market opportunities

Action: Create a spreadsheet with your top 10 candidate locations. List establishment counts, employment, and payroll for each. Rank by market size.

Step 3: Assess Competition Levels

Count establishments in your specific NAICS code for each candidate location:

• High competition (100+ establishments): Dense markets with many competitors
• Moderate competition (10-99 establishments): Active markets with manageable competition
• Low competition (<10 establishments): Emerging or underserved markets

Action: For each candidate location, calculate: (Your Industry Establishments) / (Total Establishments). Higher percentages mean your industry is more concentrated in that market.

Step 4: Calculate Market Opportunity Score

Combine multiple factors to score each location:

• Market Size (40%): Total establishments and employment
• Competition Level (30%): Establishments in your industry
• Growth Trend (20%): Establishment growth rate 2018-2022
• Market Density (10%): Establishments per capita

Action: Score each candidate location 1-10 on each factor. Multiply by weights and sum for total opportunity score. Rank locations by score.

Step 5: Make Your Location Decision

Combine quantitative data (rankings, scores) with qualitative factors (cost of living, business climate, personal preferences) to choose your location.

Action: Create a decision matrix scoring each location on: market metrics (40%), competition assessment (30%), business climate (20%), and personal fit (10%).

Common Use Cases

Scenario 1: Starting a New Business → Focus on counties with moderate establishment counts (100-1,000 total) and low competition in your industry (<10 competitors). These markets offer opportunity without intense competition.

Scenario 2: Expanding to New Markets → Prioritize counties with 5%+ annual establishment growth. Growing markets offer expansion opportunity rather than saturation.

Scenario 3: B2B Service Provider → Target counties with high total establishment counts (1,000+). More businesses mean more potential clients and B2B opportunities.

Scenario 4: Retail or Consumer-Facing Business → Balance establishment counts with population and income data. High business counts with high population and income indicate strong consumer markets.

Questions to Ask Yourself

• What matters more: market size or competition level?
• Do I need a large customer base, or can I succeed with a niche market?
• Is my business model better suited to established markets or emerging ones?
• How important is industry clustering and networking opportunities?
• What’s my risk tolerance: proven markets or growth opportunities?

Action Items Checklist

• Identify your NAICS code and industry classification
• Research establishment counts for your top 10 candidate states
• Analyze county-level data for specific markets within your target states
• Count competitors in your industry for each candidate location
• Calculate market opportunity scores using multiple factors
• Compare establishment growth rates 2018-2022 for trend analysis
• Research business climate and operating costs for top candidates
• Consult with Business Initiative for location strategy guidance

Industry-Specific Recommendations

Professional Services (NAICS 54): Target counties with 500+ total establishments and moderate competition (20-50 competitors). Professional services benefit from business density for B2B opportunities while avoiding oversaturation.

Retail Trade (NAICS 44-45): Focus on counties with high population density and 0.05-0.08 establishments per capita. Retail needs customer density, but too many competitors can hurt margins.

Health Care (NAICS 62): Look for counties with growing establishment counts and aging population trends. Health care demand is driven by demographics, not just business counts.

Accommodation and Food Services (NAICS 72): Target counties with tourism activity or high employment (indicating business travel). Restaurant success depends on foot traffic, not just local business counts.

Technology Services (NAICS 51): Prioritize counties with industry clusters (5%+ of establishments in tech). Technology businesses benefit from talent pools and networking in tech hubs.

Common Mistakes to Avoid

Mistake 1: Ignoring County-Level Data Focusing only on state-level data misses critical local market differences. Major metropolitan counties can have 50,000+ establishments while many rural counties in the same state have <5,000. County selection matters more than state selection for many businesses.

Mistake 2: Overlooking Competition Density High total establishment counts don’t always mean opportunity if your specific industry is oversaturated. Always check NAICS-specific counts, not just total businesses.

Mistake 3: Not Considering Growth Trends Current establishment counts show today’s market, but growth trends show tomorrow’s opportunity. Markets with 5%+ annual growth offer expansion potential that stagnant markets lack.

Mistake 4: Ignoring Market Saturation Counties with 0.10+ establishments per capita may have oversupply. Moderate density (0.05-0.08) often offers better balance of opportunity and competition.

Mistake 5: One-Size-Fits-All Thinking What works for a retail business (needs customer density) may not work for a B2B service (needs business density). Match location characteristics to your specific business model.

Optimization Strategies

For Maximum Market Size: Target top 10 states by total establishments (California, Texas, Florida, New York, etc.). These markets offer the largest customer bases, most suppliers, and most business opportunities.

For Lower Competition: Focus on counties with moderate total establishments (1,000-10,000) but low counts in your specific industry (<10 competitors). These markets offer opportunity without intense competition.

For Industry Clustering: Prioritize counties where your industry represents 5-10% of total establishments. Industry clusters provide networking, talent access, and customer density advantages.

For Balanced Approach: Choose counties ranked 20-50 by establishment count with 3-5% annual growth. You get proven markets with expansion opportunity without premium costs or extreme competition.

Timing Considerations

Best Time to Enter Large Markets: When you have capital and competitive advantage ready. Large markets reward quality and differentiation but require resources to compete effectively.

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

When to Reassess: Review CBP data annually when new releases become available. County positions change, and what was optimal 2-3 years ago may not be today.

Resource Recommendations

For Market Research:

• Census Bureau County Business Patterns (official CBP data source)
• State economic development websites (local market insights)
• Industry association reports (industry-specific market data)
• Business climate rankings (supplement establishment data)

For Location Support:

• Business Initiative location strategy services
• Local chamber of commerce (county-level business information)
• State Secretary of State websites (business registration requirements)

For Market Validation:

• Combine CBP data with ACS demographic data for complete market picture
• Research local competition and market saturation through business directories
• Consult with Business Initiative for personalized location guidance

FAQs - Frequently Asked Questions About Market Size Analyzer: Business Counts by

In Summary

Our comprehensive exploration of market size analyzer: business counts by industry and location (2022) has revealed critical insights into business patterns, market size, and industry distribution that can inform business strategy.

Analyze market size by industry and location to understand your market potential. This tool reveals business counts t

By understanding these statistics, you can make data-driven decisions about market entry, competitive analysis, and location strategy.

This analysis reveals important patterns and trends that inform business strategy and help identify opportunities.

Applying the insights from this article can have several practical benefits:

• Strategic Planning: Use this data to inform market analysis and competitive positioning.
• Competitive Analysis: Compare your market position against industry benchmarks.
• Risk Assessment: Understand market size and business density to assess opportunities.

By leveraging the information outlined in this article, businesses can gain a competitive edge and make more informed strategic decisions.

Ready to take action based on this data?

This data can help you make informed decisions about business location, market entry, and strategic planning.

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