Minnsights Blog

Minnesota’s economy is largely powered by small and medium sized businesses (SMB’s). SMB’s make up 99.5% of all Minnesota firms and employ nearly 47% of all Minnesota workers.  Small businesses also drive job growth in the state’s economy. In 2019 SMB’s were responsible for over 22,000 net new jobs, with firms under 20 employees creating the largest share of new jobs.  

At the Minnesota Chamber’s Virtual Washington, D.C. Fly-In, employers from every corner of Minnesota were able to meet with the U.S. senators and representatives to share what issues are impacting their businesses. Without question, the top issue discussed by employers was the current workforce shortage facing businesses in the state. 

April 2021 marked the one-year point from the largest economic downturn in Minnesota’s modern history. The shock to the economy last spring was staggering: Minnesota shed more than 400,000 jobs and lost over $36 billion dollars in GDP output, as in-person activities ground to a halt to slow the spread of COVID-19. To put this in perspective, Minnesota’s 2020 job losses exceeded the size of North Dakota’s entire workforce.

Economic strategy starts with building on core strengths and driving resources toward efforts that help existing businesses change and grow.