The 10 Fastest (and slowest) Growing Industries for Small Business

Entrepreneur magazine had some numbers ran for them over the last calendar year, and the results are in.

Here’s a look at the industries where U.S. companies with $10 million or less in annual sales have shown the highest and lowest percentage change from Jan. 1 to Dec 31, 2012. As a benchmark, the average growth rate across all U.S. small businesses in the time period was 8 percent, says Libby Bierman, an analyst at Sageworks.

“The good news for entrepreneurs is that much of the fastest growth is in service businesses, which can be started without a lot of money to buy equipment and inventory”

Fastest-Growth Industries for U.S. Small Businesses in 2012

1. Residential building construction: 14.77 percent
2. Building custom software and servers for businesses: 14.29 percent
3. Machinery, equipment, and supplies merchant wholesalers: 13.75 percent
4. Management, scientific, and technical consulting services: 12.31 percent
5. Architectural, engineering, and related services: 11.40 percent
6. Foundation, structure, and building exterior contractors: 11.37 percent
7. Building finishing contractors who make additions, alterations, maintenance and repairs: 11.32 percent
8. General freight trucking: 10.41 percent
9. Services to buildings and dwellings, including pest exterminators, janitorial services, and landscaping: 10.11 percent
10. Other specialty trade contractors, including site preparation activities and other specialized trades: 10.04 percent

Slowest-Growth Industries for U.S. Small Businesses in 2012

1. Skilled nursing care facilities: -3.29 percent
2. Printing and related support activities: 1.86 percent
3. Automotive repair and maintenance: 2.81 percent
4. Offices of physicians: 3.00 percent
5. Highway, street, and bridge construction: 4.24 percent
6. Insurance agencies, brokerages, and other insurance-related activities: 4.32 percent
7. Lessors of real estate: 5.07 percent
8. Other miscellaneous manufacturing including jewelry and silverware, sporting and athletic goods, dolls, toys, and games, office supplies other than paper, and signs: 5.55 percent
9. Offices of health practitioners other than physicians and dentists, including chiropractors, optometrists, mental health practitioners, speech and occupational therapists: 5.98 percent
10. Other amusement and recreation services including bowling centers, golf courses, and recreational centers: 6.03 percent

Image courtesy David Jackmanson

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