A new study has revealed the states whose small businesses pay the best salaries, with New York and Connecticut finishing in the top five.
The analysis of recently released data from the U.S. Census Bureau by business advice company Venture Smarter established the average salary for employees in businesses of fewer than five, five to nine and 10 to 19 employees.
In businesses of five to nine employees, New York pays on average the fourth-highest salary nationwide – behind Massachusetts, Delaware and California – at $51,090. This comes in 14% above the nationwide average for this category of business, which is $44,900. Connecticut is fifth, with an average salary of $50,244, 11.99% above the nationwide average. Alaska, New Hampshire, Maryland, New Jersey and Colorado round out the top 10.
In businesses of 10 to 19 employees, the Empire State is again the fourth-highest paying nationwide – behind Massachusetts, Alaska and California – this time paying 16% above average with a salary of $54,020. And the Nutmeg State is right behind it, with a salary of $52,954. Rounding out the top 10 here are New Jersey, Maryland, Illinois, Washington and New Hampshire.
Even in businesses of fewer than five employees, New York and Connecticut are top 10. New York ranks eighth nationwide, with an average salary of $60,060, coming in 8% above the average of $55,800 behind California, Delaware, Nevada, Massachusetts, Alaska, Colorado and New Hampshire. Maryland is ninth, and Connecticut is 10th, with an average salary of $59,602, a 6.77% increase over the national average.
A spokesperson from Venture Smarter said: “This information sheds light on the diverse financial landscapes within the country, and it is certainly interesting to establish the states that offer more lucrative opportunities for small business workers. Recognizing and understanding these highlighted wage disparities among small businesses is crucial for businesses and workers alike. Factors such as the cost of living vary by area, and employers have a social responsibility to ensure they pay adequate and fair wages for their employees’ locations. Awareness of wage disparities also allows businesses to stay competitive when it comes to attracting and hiring skilled workers.
