The Market Opportunity Finder: Underserved Industries by Location (2022)

What if you could see that Wyoming has 2,130 health care establishments while California has 127,019—but Wyoming’s per-capita rate might actually be higher? This Market Opportunity Finder reveals exactly where industries are underserved by location—and how you can position yourself in markets with the greatest opportunity.

The data shows dramatic differences: health care and social assistance (NAICS 62) ranges from 127,019 establishments in California to just 2,130 in Wyoming—a 60x difference. But when adjusted for population, some smaller states may actually have underserved markets. This isn’t just about raw numbers—it’s about understanding market opportunity, underserved industries, and location advantages that directly impact your market entry strategy.

Find underserved industries by location to identify business opportunities. This tool reveals mark

This analysis examines County Business Patterns (CBP) data from the U.S. Census Bureau to identify underserved industries—markets where industry presence is low relative to population or market size—across all U.S. states. You’ll discover which markets have the lowest industry presence, where underserved opportunities exist, and how to position yourself in markets with less competition.

What You’ll Discover:

• State rankings by industry establishment counts (identifying potentially underserved markets)
• Industry-specific opportunity patterns revealing underserved locations
• Location-specific opportunity indicators impacting market entry decisions
• Underserved market identification by industry and location
• Market opportunity indicators for less competitive market entry

Why This Matters: Understanding underserved markets helps you identify where your industry has low presence, assess opportunity levels, and make strategic location decisions. Underserved markets offer less competition and growth potential but require careful market validation.

Industry Presence Varies Dramatically by Location

The Numbers: Health care ranges from 127,019 establishments in California to 2,130 in Wyoming—a 60x difference. This means California has 60x more health care presence than Wyoming.

So What? Low establishment counts may indicate underserved markets with less competition and growth potential. However, low counts may also indicate limited market size or demand. Understanding these patterns helps you identify where underserved opportunities may exist.

How to Use This: If you’re in health care, markets with low establishment counts (like Wyoming with 2,130) may offer underserved opportunity but require careful validation of market size and demand. Always compare counts to population to assess per-capita rates.

Underserved Markets Reveal Opportunity

The Numbers: States like Wyoming (2,130 establishments), Vermont (2,149), and Alaska (2,841) have the lowest health care establishment counts, potentially indicating underserved markets.

So What? Underserved markets may offer less competition and growth potential. However, they also require careful validation to ensure market size and demand exist. Low counts don’t automatically mean opportunity—they may indicate market constraints.

How to Use This: Target markets with low establishment counts relative to population for potentially underserved opportunity. Always validate with population data, demographic trends, and market research before entering.

Location Strategy Must Account for Market Opportunity

The Numbers: The difference between the highest-count state (California, 127,019 establishments) and lowest-count states (Wyoming, 2,130) is 60x, meaning dramatically different market presence and potentially different opportunity levels.

So What? Market opportunity directly impacts your competitive position. Underserved markets offer less competition but also require careful validation. Your location choice should balance opportunity with market validation requirements.

How to Use This: For businesses seeking less competition, underserved markets may offer opportunity. For businesses requiring proven demand, established markets (50,000+ establishments) often offer better validation.

Red Flags

• Extremely Low Counts (<1,000 establishments): May indicate very limited market size or demand constraints
• Low Counts with Declining Population: Markets with low counts and declining population may signal market contraction
• Count-Population Mismatch: Markets where counts are low but population is high may indicate true underserved opportunity

Green Lights

• Low-to-Moderate Counts (5,000-20,000 establishments): Potentially underserved markets with less competition, requiring market validation
• Growing Counts with Population Growth: Markets where counts are increasing alongside population growth signal expanding opportunity
• Diverse Industry Distribution: Markets with opportunity across multiple industries offer stability and multiple opportunity sources

How to Use This Data

Follow this step-by-step process to identify underserved markets and make data-driven location decisions:

Step 1: Identify Low Establishment Count Markets for Your Industry

Compare establishment counts across states for your industry (NAICS code):

• State-level: Get broad underserved market identification
• Industry-specific: Use NAICS-filtered data for your specific industry
• Count Ranking: Rank states by establishment counts to identify lowest-count markets

Action: Create a spreadsheet with all 50 states. List establishment counts for your industry in each. Rank by count (lowest = potentially most underserved).

Step 2: Calculate Per-Capita Rates

Low absolute counts don’t always mean underserved markets. Calculate establishments per capita:

• Per-Capita Rate = (Establishment Count ÷ Population) × 1,000
• Compare per-capita rates across states to identify truly underserved markets

Action: For each candidate location, calculate per-capita establishment rate. Compare to national average to identify underserved markets.

Step 3: Validate Underserved Markets

Low counts may indicate opportunity but also require validation:

• Market Size: Verify total market size and customer base
• Demand Validation: Research demographic trends and demand indicators
• Competition Assessment: Assess existing competition levels
• Growth Indicators: Research population and economic growth trends

Action: For each potentially underserved market, conduct market validation research to confirm opportunity exists.

Step 4: Compare Opportunity vs. Risk

Balance underserved opportunity (less competition) with market validation requirements (risk).

Action: Create a matrix scoring each underserved market on opportunity (30%) and validation confidence (30%). Rank by your risk tolerance.

Step 5: Make Your Location Decision

Combine underserved market analysis with other factors (business climate, personal preferences) to choose your location.

Action: Create a decision matrix scoring each location on: underserved opportunity (30%), market validation (30%), business climate (20%), and personal fit (20%).

Common Use Cases

Scenario 1: Seeking Less Competition → Focus on markets with low establishment counts relative to population. These markets may offer less competition but require careful validation.

Scenario 2: Validated Underserved Opportunity → Target markets with low counts that have been validated through demographic and demand research. These markets offer opportunity with lower risk.

Scenario 3: Emerging Market Entry → Consider markets with low counts but growing population and economic indicators. Early entry in underserved markets provides expansion opportunity.

Scenario 4: Risk-Averse Strategy → Avoid extremely low-count markets (<1,000 establishments) unless strong validation exists. Focus on moderate-count markets (5,000-20,000) with proven demand.

Questions to Ask Yourself

• What matters more: less competition (underserved markets) or proven demand (established markets)?
• Can I validate underserved markets effectively, or do I need established markets?
• Does my business model benefit from underserved markets or established markets?
• Am I entering a validated underserved market or an unvalidated one?

Action Items Checklist

• Identify low establishment count markets for your industry by ranking states by counts
• Calculate per-capita establishment rates for each candidate location
• Validate underserved markets with demographic and demand research
• Assess market size and customer base for each underserved candidate market
• Research population and economic growth trends in underserved markets
• Compare opportunity vs. risk for each underserved market
• Consult with Business Initiative for underserved market validation and location strategy guidance

Industry-Specific Recommendations

Health Care (NAICS 62): Target markets with 5,000-20,000 establishments and validate with demographic trends (aging population). Health care underserved markets require careful demand validation.

Professional Services (NAICS 54): Focus on markets with 3,000-15,000 establishments in areas with business growth. Professional services benefit from underserved markets with business activity.

Retail Trade (NAICS 44-45): Look for markets with 10,000-30,000 establishments combined with population growth. Retail needs customer base validation in underserved markets.

Accommodation and Food Services (NAICS 72): Target markets with 5,000-20,000 establishments in areas with tourism or employment growth. Restaurants benefit from underserved markets with foot traffic.

Technology Services (NAICS 51): Prioritize markets with 2,000-10,000 establishments in areas with tech industry growth. Technology businesses benefit from underserved markets with talent access.

Common Mistakes to Avoid

Mistake 1: Using Only Absolute Counts Without Per-Capita Analysis Low absolute counts don’t always mean underserved markets. Always calculate per-capita rates and compare to population.

Mistake 2: Not Validating Underserved Markets Low counts may indicate opportunity but also require validation. Don’t enter underserved markets without market size and demand validation.

Mistake 3: Ignoring Market Constraints Low counts may indicate underserved opportunity but also market constraints (limited size, low demand). Always assess both opportunity and constraints.

Mistake 4: Overlooking Population Trends Current counts show today’s presence, but population trends show tomorrow’s opportunity. Markets with declining population may not be good underserved opportunities.

Mistake 5: Not Considering Industry-Specific Patterns Overall counts don’t reflect your industry’s underserved patterns. Always use NAICS-filtered data for your specific industry.

Optimization Strategies

For Maximum Opportunity: Target markets with low establishment counts (5,000-20,000) relative to population that have been validated through demographic and demand research.

For Balanced Approach: Focus on markets with moderate counts (20,000-50,000) that offer some opportunity without extreme validation requirements.

For Risk-Averse Strategy: Consider markets with moderate-to-high counts (50,000+) that offer proven demand with manageable competition.

For Underserved Market Entry: Prioritize markets where low counts are validated by population growth, demographic trends, and demand indicators.

Timing Considerations

Best Time to Enter Underserved Markets: When you have market validation complete and resources ready. Underserved markets reward early entry but require validation and resources.

Best Time to Enter Validated Markets: When demographic and demand research confirms opportunity. Validated underserved markets offer opportunity with lower risk.

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

Resource Recommendations

For Market Research:

• Census Bureau County Business Patterns (official CBP data source)
• ACS population data (for per-capita calculations)
• NAICS code lookup tools (identify your industry classification)
• State economic development websites (local market insights)

For Location Support:

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

For Market Validation:

• Combine CBP establishment data with ACS demographic data for complete market picture
• Research local market demand and customer base
• Consult with Business Initiative for personalized underserved market validation and location guidance

FAQs - Frequently Asked Questions About The Market Opportunity Finder: Underserved

In Summary

Our comprehensive exploration of underserved industries by location (2022) has revealed critical insights into market opportunity, competition levels, and location advantages that can inform strategic business decisions.

Key Findings:

• Industry presence varies dramatically by location—health care ranges from 127,019 establishments in California to 2,130 in Wyoming (60x difference)
• Underserved markets reveal opportunity—markets with low establishment counts relative to population may indicate underserved industries and business opportunities
• Location strategy must account for market opportunity—underserved markets offer less competition but require careful market validation
• Low-to-moderate count markets often offer best balance—markets with 5,000-20,000 establishments provide potentially underserved opportunity with manageable validation requirements
• Market validation is critical—low counts may indicate opportunity but also require validation of market size, demand, and customer base

What This Means for Your Business: Understanding underserved markets helps you identify where your industry has low presence and where opportunities may exist. Underserved markets offer less competition and growth potential but require careful validation to ensure market size and demand exist. The best approach balances underserved opportunity (less competition) with market validation (risk management).

Practical Applications:

• Location Strategy: Use establishment counts to identify potentially underserved markets for your industry
• Market Analysis: Calculate per-capita rates to identify truly underserved markets (low counts relative to population)
• Competitive Analysis: Compare industry presence across locations to understand competition levels and opportunity
• Expansion Planning: Target validated underserved markets (5,000-20,000 establishments) for less competition and growth potential

Next Steps:

1. Identify low establishment count markets for your industry by ranking states by counts
2. Calculate per-capita establishment rates for each candidate location to identify truly underserved markets
3. Validate underserved markets with demographic and demand research
4. Compare opportunity vs. risk for each underserved market candidate
5. Consult with Business Initiative for underserved market validation and location strategy guidance

Ready to take action based on this data?

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

Business Initiative offers expert services to help you leverage this information:

• Explore Profit Margin
• Explore Break Even Analysis
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