As an expert in the field of business and economics, I have been closely studying the trends and statistics of businesses in Springfield, Massachusetts. One of the most common questions that arises when discussing the economy of a city is the average number of employees per business. This is a crucial factor in understanding the job market and the overall economic health of a city.
The Business Landscape in Springfield, Massachusetts
Springfield, Massachusetts is the third-largest city in New England and the fourth-largest in the state. It is home to a diverse range of industries including healthcare, education, manufacturing, and tourism.The city has a rich history and has been a hub for innovation and entrepreneurship since its early days. According to the latest data from the U. S. Census Bureau, there are approximately 10,000 businesses in Springfield, Massachusetts. This includes both small and large businesses across various sectors.
The number has been steadily increasing over the years, indicating a growing economy and a favorable business environment.
The Average Number of Employees per Business
Now, let's get to the main question - what is the average number of employees per business in Springfield, Massachusetts? According to the U. Census Bureau's County Business Patterns data, the average number of employees per business in Springfield is 9.5. This means that on average, each business in Springfield employs 9.5 people. This number may seem low compared to other cities, but it is important to note that Springfield has a higher concentration of small businesses compared to other cities. In fact, 80% of businesses in Springfield have less than 10 employees.This is significantly higher than the national average of 68%.Another factor that affects the average number of employees per business is the size of the business. In Springfield, the majority of businesses fall under the category of "non-employer" businesses, meaning they have no paid employees. These businesses make up 73% of all businesses in the city. On the other hand, businesses with 20 or more employees make up only 3% of all businesses in Springfield.
The Impact of Small Businesses on the Economy
Small businesses play a crucial role in the economy of Springfield, Massachusetts.They are the backbone of the city's economy and are responsible for creating jobs and driving innovation. In fact, small businesses account for 60% of all new jobs created in the city. One of the main reasons for the high concentration of small businesses in Springfield is its favorable business environment. The city offers various incentives and resources to help entrepreneurs start and grow their businesses. This has led to a thriving small business community in Springfield. Moreover, small businesses also contribute to the local economy by keeping money within the community.
They are more likely to source goods and services from other local businesses, thus creating a multiplier effect that benefits the entire community.
The Impact of Large Businesses on the Economy
While small businesses dominate the business landscape in Springfield, large businesses also play a significant role in the city's economy. These include major employers such as Baystate Health, MassMutual, and Smith & Wesson. Large businesses not only provide employment opportunities but also contribute significantly to the city's tax revenue. They also attract talent and investment to the city, further boosting its economic growth.The Future of Businesses in Springfield
The future looks bright for businesses in Springfield, Massachusetts. The city has been making efforts to attract new businesses and retain existing ones.This includes investing in infrastructure, providing tax incentives, and promoting entrepreneurship. Moreover, the city's strategic location and access to major highways and airports make it an attractive destination for businesses. With a growing economy and a supportive business environment, Springfield is poised for continued growth in the coming years.
