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Douglas County – According to a 2022 study by SmartAsset, Douglas County was ranked the fifth best county in Minnesota for small business owners and 990th nationally.
The study used five factors to determine the outcome.
- Number of county people with small business income – 11.68%
- Small Business Returns – 24.55%
- Reported business income tax – $9,324
- Small business tax return index five-year change – 46.10
- Small business income index five-year change – 7.52
“These five factors were then indexed and weighted similarly to the Small Business Index,” the study says. “The areas with the highest Small Business Index are the areas that rank highest in the study.”
Douglas County has an index of 49.71. The highest – Cook County – had 53.70. Pope County was second in 50.45.
The study found that income tax plays a major role in determining the financial success of a business because the owners pay income tax on the profits of the business rather than paying taxes. Tax burdens are determined by using the national median household income and applying applicable deductions and exemptions before considering local, state and federal income taxes.
According to the Executive Director of the Alexandria Area Economic Development Commission, Nicole Fernholz, according to the Small Business Association (SBA), a small business is a company with fewer than 500 employees.
“Most of our companies in Douglas County meet that criteria, so we look at all small businesses. But more than half of our companies have fewer than five employees,” Fernholz said in an email, noting that more than 2,000 have been verified. Businesses in Douglas County. “99% of our businesses have fewer than 99 employees. 83% of our companies have fewer than 20 employees.”
Fernholz said there has been a recent uptick in new business applicants. In the year In 2021, there were 317. Before that, the average was less than 250 per year.
“Small businesses are the bedrock of our communities. Not only the jobs they create and the goods/services they provide, but also the impact they have on other community events,” she said. “Small businesses sponsor local schools, charities, youth sports teams.”
She says the growth of the community is with the local businesses.
When asked why Douglas County ranks in the top five counties for small businesses in Minnesota, Fernholz said the county has a variety of industries that are top job drivers in manufacturing, retail, health care, tourism and education. However, retail trade is the dominant type of business in the county, followed by construction, professional services, entertainment and hospitality.
“The services our local companies provide only reinforces that we are a regional hub. People come here for health care, and while they’re here they do some shopping and cooking. They spend the week thinking about vacations. Many businesses use others. It leads to a favorable climate for businesses and small businesses,” he said. she said.
Fernholz said people thinking of starting their own business in the area should visit livealexarea.org to learn about free business training and support services.
Talen Zimmerman of Alexandria joined the Echo Press team as a full-time reporter in 2010. Joined August 2021, after graduating from Bemidji State University in May 2021 with a Bachelor of Science in Mass Communication.
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