Running a small business can be challenging, especially during times of inflation. In 2023, with inflation averaging 4.1%, 35% of small businesses had to reduce staff due to rising costs, as revealed in a survey of 1,000 small business owners conducted by OnePoll on behalf of Melio.
By the beginning of 2024, 22 states along with 38 counties and cities had increased their minimum wages, affecting 10 million workers nationwide, as reported by the American Institute for Economic Research. This change also impacted many small businesses that employ these workers.
Related: Discover What Millions of Small Businesses Have in Common, According to a Recent Survey
Which states require small business owners to pay their employees the highest salaries? OnDeck, a small business lending company, delved into U.S. Census Bureau data for businesses with fewer than 500 employees to find out.
Based on their research, Massachusetts, California, and New York emerged as the top three states where small business owners can expect to pay the highest average annual salaries, with figures reaching $72,151, $67,237, and $66,924 respectively.
Conversely, Mississippi ranked lowest in terms of average annual salary for employees in small businesses, with a figure of $39,310 based on the data.
Related: Small Business Owners Share Surprising Insights on Their Priorities for the 2024 Election, Revealed in a Recent Survey
Take a look at the infographic below for a complete ranking compiled from OnDeck’s research:
Image Credit: Courtesy of OnDeck
