Drive down any main street in South Dakota and you will find the doors to several businesses opened by a family member who owns that store. It may be the local coffee shop or café, the grain elevator, maybe the hardware store, or even the bank. Family-owned businesses are how many South Dakota communities survive.

Recently OnDeck analyzed data from the U.S. Census Bureau’s 2023 Annual Business Survey and found that South Dakota leads the nation with 41.25% of family-owned businesses.

South Dakota also ranks high (No. 3, 45.46%) when it comes to where the workforce is employed.

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Now that's not to say a South Dakota family-owned business pays more than other states. When you look at the map of Average Wages for Family-Owned Businesses, all up and down the heartland these states are making an average of $40K to $49K per year.

Starting A Business In South Dakota

What does this all have to do with starting a business? People who have been drawing wages from other companies have found that working for themselves brings them more happiness and fulfillment, according to Forbes Magazine.

READ MORE: The Most Common Last Name in South Dakota May Surprise You

Does that mean more income? Not always. However, Forbes has found that South Dakota once again ranked high (2024-No. 4) for entrepreneurs opening a business here.