South Dakota: Small Business By Design
South Dakota's employer economy is deliberately weighted toward small, private business. The 2023 County Business Patterns counts 29,106 employer establishments statewide in South Dakota, about 95.8% of them with fewer than 50 employees, and its largest sectors by count are retail trade, other services, construction and health care. The state's economic development office describes the southeast region anchored by Sioux Falls as the state's largest population center and primary economic engine, leading in financial services, health care, advanced manufacturing and food production. The tax structure is the usual headline; the practical reality for owners is a dense concentration of banking, insurance and processing operations that all run on back-office precision.
29,106 employer establishments statewide in South Dakota, about 94% of them with fewer than 50 employees
the state's economic development office describes the southeast region anchored by Sioux Falls as the state's largest population center and primary economic engine, leading in financial services, health care, advanced manufacturing and food production
- U.S. Census Bureau: 2023 County Business Patterns: State file (cbp23st) (2023 CBP; retrieved 2026-10-05)
- South Dakota Governor's Office of Economic Development: Southeast Region (undated current page; retrieved 2026-10-08)