The Wisconsin Policy Forum reported that the number of businesses with fewer than 500 employees increased 20% between 2020 and 2025.
This growth is larger than 2010-2020, and the number of businesses with fewer than 10 employees has grown quickly. However, those with 100 employees or more are growing more slowly.
“Wisconsin entrepreneurs are succeeding in starting businesses but often face difficulties scaling them into larger, more sustainable enterprises,” the report said. “Our research found that small businesses play a vital role in local economies by driving job creation and growth, fostering innovation and entrepreneurship, and contributing to local philanthropy and community identity.”
Madison and Milwaukee ranked the highest for business formation and employment.
Small businesses in Wisconsin made up about 95% of Wisconsin’s net job growth between 2010 and 2025.
