Greater Des Moines Small Business Jobs Report: A Look at the Latest Trends

Small businesses are the backbone of any economy.

Entrepreneurs inherently solve problems that impact the community and the greater society. They create value in many ways: starting a new business, establishing new jobs, bringing innovative solutions to market, creating our favorite shops on Main Street and making products and services many buy every day. Not to mention, all major employers today have an origin story that begins with an idea and an entrepreneur!

At the Greater Des Moines Partnership, we recognize how supporting small business and startups is critical, and we continue to have a long-term commitment to growing the entrepreneurial community across the region and statewide.

The latest DSM Small Business Jobs Report reveals how small businesses play an even more significant role than one might think in driving employment and economic growth across the region. Download the report here.

Small Business Employment Trends

Over the years, the Greater Des Moines (DSM) region, including 12 counties across Central Iowa, has demonstrated remarkable resilience and expansion in its small business ecosystem.

Between 2015 and 2022, DSM saw consistent growth in jobs generated by startups and small enterprises. In 2022 alone, there were 12,286 jobs created by new firms, a significant increase from the prior year which included 8,964 jobs by new firms. Digging into the data, Finance and Insurance firms less than one year old added 3,365 employees in 2022 compared to the year prior at 128 employees in this sector.

One of the most notable statistics from the report is that DSM outpaced the U.S. in total employment growth by 6.4%, reinforcing its position as a strong and vibrant business hub.

In 2022 alone, there were 21,779 businesses with at least one employee, reinforcing the impact of entrepreneurship as a driving force behind the success of the local job market.

Industries Leading Job Growth

Several industries stand out in driving employment growth in DSM, including:

• Finance and Insurance (27.7%) – The region’s strong financial services sector has been a key player in job creation, reflecting its reputation as a business-friendly environment for financial institutions and insurance companies.
• Accommodation and Food Service (19%) – The hospitality sector has shown significant expansion, likely driven by increased tourism, population growth and consumer spending.
• Healthcare and Social Services (8.7%) – As one of the most stable industries, healthcare continues to provide a strong source of employment, responding to the growing needs of the community.
• Construction (7.7%) – The ongoing development and infrastructure projects in the region have contributed to job growth in construction.
• Retail Trade (6%) and Manufacturing (5.1%) – While retail and manufacturing have seen moderate growth, they remain vital to the overall economy, supporting local and regional supply chains.

Self-Employment and the Gig Economy Trends

The total number of small business employees has surged over the years. The report shows that in 2015, the region had 51,219 self-employed and sole proprietors, growing to 63,618 by 2022. This upward trend reflects the increasing number of ‘companies of one’ and the role the gig economy has within the business and creative landscape.

The Future of Small Business Depends on Your Support

As DSM continues to grow, small businesses will remain a vital component of the region’s economic success. With strong industry performance, increasing employment and a thriving entrepreneurial spirit, the outlook for small businesses in DSM is promising.

If you are a local organization, economic developer, funder or policymaker, continue to support small business and entrepreneurial development. Consider how entrepreneurs can solve issues facing your industry or community. Invite them into the discussion.

If you are a customer, continue to show up, support and buy local. Big things don’t just happen in our communities overnight! It takes someone betting on themselves, so let’s bet on entrepreneurs again and again.

For more resources on small business in DSM, visit DSMpartnership.com/smallbusiness, and browse major employers and available jobs here.

A note about the data: The 2024 published DSM Small Business Jobs Report is powered by Source Link. Data usually lags and the most recent year’s report shows 2022 data using the U.S. Census and Bureau of Labor Statistics.