South Dakota small business statistics
South Dakota produced 12,092 business applications in 2025, up 5.2% from 2024 and 55.0% from the pre-pandemic 2019 baseline. The page shows the latest employer-likely application signal, county concentration after adjusting for population, private-sector labor growth, SBA lending, unincorporated receipts, bankruptcy filings, and federal contract demand.
Public source files covering South Dakota business formation, labor, lending, proprietor income, bankruptcy, and federal contracting.
What the data shows
The topline combines new filing volume, employer-likely application quality, county concentration, labor-market structure, lending, and business stress signals.
South Dakota logged 12,092 business applications in 2025, up 5.2% from 2024 and 55.0% from the pre-pandemic 2019 baseline.
Through May 2026, total applications were up 14.2% from the same months in 2025; high-propensity applications were up 1.7%.
Minnehaha filed 3,113 applications in 2025, the largest county total in South Dakota. Codington led the high-volume counties after adjusting for population.
Professional services added the most private-sector establishments since 2019. Construction added the most private-sector jobs.
SBA 7(a) and 504 approvals to South Dakota businesses reached $161.6M in FY2025 across 270 loans, led by accommodation and food services, construction, retail trade, wholesale trade, and administrative services.
Business bankruptcy cases tied to South Dakota counties rose from 29 to 30 in the 12-month period ending March 31, 2026.
New business formation
South Dakota business applications reached 12,092 in 2025, up 5.2% from 2024. Through May 2026, applications were running up 14.2% from the same months in 2025.
The long comparison starts before the pandemic reset.
The 2019 comparison uses the last full pre-pandemic year. The shutdown period and the business churn that followed reshaped EIN filing patterns; high-propensity applications totaled 1,732 through May 2026, up 1.7% from Jan-May 2025. Projected business formations within eight quarters fell 8.8% over the same period.
Metric note: Census BFS counts applications for employer identification numbers. Applications are early filings; confirmed operating-business counts arrive later.
Where applications are concentrated
Minnehaha is the largest application market by raw volume. Among the high-volume counties shown below, Codington stands out most after adjusting for population.
Population-adjusted filing volume changes the county read.
The chart uses 2025 Census BFS applications divided by Census Vintage 2025 resident population estimates. Minnehaha still has the most total filings in the table below, while Codington has the highest application volume relative to resident population among these high-volume counties.
Metric note: Census BFS counts EIN applications. The denominator is 2025 resident population, not existing businesses, so this is a scale adjustment rather than a startup conversion rate.
| County | 2025 applications | Change vs 2024 | Change vs 2019 |
|---|---|---|---|
| Minnehaha | 3,113 | +1.0% | +43.6% |
| Pennington | 1,690 | +4.7% | +43.2% |
| Lincoln | 1,099 | +2.8% | +90.5% |
| Codington | 1,071 | +32.1% | +144.5% |
Jobs, establishments, and wages
In 2024, South Dakota had 37,934 private-sector establishments and 381,950 private-sector jobs in the QCEW annual file. Establishments changed 19.4% from 2019 to 2024; jobs changed 7.5%.
Professional services is the establishment-growth story.
Professional services added 2,166 establishments from 2019 to 2024. Construction added 5,618 jobs over the same period.
QCEW tracks employer establishments. It is the recurring source here for jobs, wages, payroll, and local industry structure.
| Industry | 2024 establishments | Change vs 2019 | 2024 jobs | Change vs 2019 |
|---|---|---|---|---|
| Professional services | 5,600 | +2,166 (+63.1%) | 18,298 | +3,750 (+25.8%) |
| Construction | 4,405 | +508 (+13.0%) | 29,227 | +5,618 (+23.8%) |
| Wholesale trade | 3,131 | +403 (+14.8%) | 22,532 | +1,417 (+6.7%) |
| Health care and social assistance | 2,929 | +376 (+14.7%) | 70,442 | +5,237 (+8.0%) |
| Finance and insurance | 2,695 | +508 (+23.2%) | 22,575 | -1,867 (-7.6%) |
| Accommodation and food services | 2,612 | +119 (+4.8%) | 42,495 | +2,001 (+4.9%) |
| Other services | 2,547 | +324 (+14.6%) | 13,220 | +1,894 (+16.7%) |
| Administrative services | 2,538 | +688 (+37.2%) | 13,700 | +459 (+3.5%) |
| Real estate and rental | 1,366 | +238 (+21.1%) | 4,399 | +358 (+8.9%) |
| Agriculture, forestry, fishing and hunting | 1,224 | +226 (+22.6%) | 7,303 | +1,225 (+20.2%) |
SBA lending
SBA 7(a) and 504 approvals to South Dakota businesses totaled $161.6M in FY2025 across 270 loans. The SBA files report 2,467 jobs supported for those approvals.
Accommodation and food services drew the most SBA capital.
Accommodation and food services drew $48.6M in FY2025 SBA approvals. construction, retail trade, wholesale trade, and administrative services also ranked among the top capital destinations.
SBA fiscal year 2025 ran from Oct. 1, 2024, through Sept. 30, 2025. The source package was current as of April 28, 2026.
| Sector | FY2025 loans | FY2025 approvals | SBA jobs supported |
|---|---|---|---|
| Accommodation and food services | 51 | $48.6M | 914 |
| Construction | 48 | $21.6M | 412 |
| Retail trade | 29 | $19.1M | 192 |
| Wholesale trade | 13 | $13.0M | 93 |
| Administrative services | 15 | $11.7M | 166 |
| Other services | 24 | $8.5M | 108 |
| Professional services | 14 | $8.2M | 80 |
| Health care and social assistance | 17 | $5.9M | 121 |
| Arts and entertainment | 8 | $5.0M | 93 |
| Transportation and warehousing | 13 | $3.6M | 72 |
| County | FY2025 loans | FY2025 approvals | SBA jobs supported |
|---|---|---|---|
| Minnehaha | 90 | $60.5M | 1,002 |
| Pennington | 33 | $18.7M | 292 |
| Lincoln | 37 | $17.7M | 264 |
| Hughes | 7 | $11.0M | 34 |
| Lawrence | 16 | $9.6M | 121 |
| Brown | 9 | $7.0M | 132 |
| Brookings | 12 | $6.5M | 253 |
| Meade | 7 | $5.0M | 29 |
| Codington | 6 | $3.8M | 39 |
| Union | 3 | $3.1M | 22 |
The unincorporated business economy
IRS SOI data show 80,635 South Dakota Schedules C and partnership returns/forms in Tax Year 2023. Those businesses reported $18.2B in gross receipts and $2.7B in the combined income/profit measure.
Sole proprietors account for most returns.
South Dakota had 64,888 nonfarm sole-proprietor Schedules C in Tax Year 2023, with $5.0B in gross receipts and $897.5M in net profit.
Partnerships reported more gross receipts.
South Dakota partnerships filed 15,747 Forms 1065 in Tax Year 2023 and reported $13.2B in gross receipts.
| County | Returns/forms | Gross receipts | Combined income/profit metric |
|---|---|---|---|
| Minnehaha | 18,189 | $4.4B | $811.7M |
| Pennington | 10,645 | $2.3B | $375.4M |
| Lincoln | 7,157 | $1.4B | $231.2M |
| Brown | 3,490 | $911.3M | $141.5M |
| Lawrence | 3,415 | $432.7M | $49.6M |
| Meade | 2,788 | $269.3M | $38.1M |
| Codington | 2,470 | $495.1M | $72.3M |
| Brookings | 2,283 | $1.2B | $107.7M |
| Yankton | 1,826 | $424.6M | $14.8M |
| Davison | 1,804 | $438.7M | $62.2M |
Business stress signals
U.S. Courts F-5A shows 30 business bankruptcy cases tied to South Dakota counties in the 12 months ending March 31, 2026, rose from 29 in the prior 12-month period. Chapter 11 cases totaled 2.
County bankruptcy rows can move sharply.
Minnehaha had the largest business-bankruptcy count in the latest F-5A table. County bankruptcy rows can move when related business cases are filed in the same venue, so this table works best as a lead for follow-up reporting.
Definition: U.S. Courts classifies debt as business when the debtor is a corporation or partnership, or when business-related debt predominates.
| County | Business cases, 12 months ending Mar. 31, 2026 | Change vs prior 12 months | Chapter 11 cases | All bankruptcy cases |
|---|---|---|---|---|
| Minnehaha | 10 | +1 | 1 | 241 |
| Pennington | 4 | +0 | 0 | 92 |
| Lincoln | 3 | +0 | 0 | 69 |
| Moody | 2 | +2 | 1 | 4 |
| Aurora | 1 | +1 | 0 | 1 |
| Hamlin | 1 | +1 | 0 | 2 |
| Turner | 1 | +1 | 0 | 4 |
| Spink | 1 | +1 | 0 | 3 |
| Meade | 1 | -1 | 0 | 18 |
| Hutchinson | 1 | +1 | 0 | 4 |
National credit backdrop
The 2026 Fed Small Business Credit Survey appendix reported that 94% of U.S. employer firms faced a financial challenge in 2025, 38% applied for financing, and 52% of applicants were fully approved.
Federal contract demand
USAspending reports $817.4M in FY2025 federal procurement obligations to recipients located in South Dakota. The filter covers procurement awards to SD recipients across award type codes A, B, C, and D.
| NAICS | Federal procurement category | FY2025 obligations |
|---|---|---|
| 334111 | Electronic Computer Manufacturing | $195.0M |
| 541519 | Other Computer Related Services | $62.9M |
| 236220 | Commercial and Institutional Building Construction | $59.3M |
| 522110 | Commercial Banking | $48.9M |
| 237110 | Water and Sewer Line and Related Structures Construction | $44.8M |
| 561320 | Temporary Help Services | $37.4M |
| 488310 | Port and Harbor Operations | $37.4M |
| 237990 | Other Heavy and Civil Engineering Construction | $31.5M |
| 333120 | Construction Machinery Manufacturing | $25.5M |
| 561612 | Security Guards and Patrol Services | $25.0M |
Sources and methodology
The charts and figures on this page come from public source files or APIs. Annual sources use the most recent complete year available; partial-year figures are labeled in the text.
- Census BFS monthly CSV
Updated June 10, 2026, 14:00 GMT - Census BFS county workbook
Updated June 10, 2026, 14:22 GMT - Census county population estimates
Vintage 2025 county resident population estimates - BLS QCEW annual area files
2019 and 2024 annual API files - SBA 7(a)/504 FOIA package
Updated April 28, 2026, 14:42 GMT - IRS SOI Tax Year 2023 unincorporated tables
Tax Year 2023 county combined, sole proprietor state, and partnership state tables - U.S. Courts F-5A bankruptcy XLSX
12 months ending March 31, 2026 - Fed SBCS Main Street Metrics appendix
Last updated March 23, 2026 - USAspending API
FY2025 procurement obligations
Alex Morgan edits public business datasets for SMB Statistics, including Census, BLS, SBA, IRS, U.S. Courts, Fed SBCS, and USAspending files.