The Official Web Site of the State of South Carolina

Small Businesses in South Carolina Have Big Impact on Labor Market

By Lainey Stalnaker, Data Analytics Writer    

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Small Business Saturday takes place two days after Thanksgiving each year with the goal of encouraging people to shop locally and support small businesses. In recognition of this day, we’re highlighting small businesses in South Carolina and their impact on the labor market.

Small Businesses Make Up Majority of All Businesses in the State 

Figure 1. Total Establishments in South Carolina by Number of Employees, Q1 2025

The majority of businesses in South Carolina employ fewer than 100 people. In fact, most have just a few employees. In quarter one of 2025, there were 194,411 establishments (or businesses) in South Carolina.*  69.4 percent of these establishments employed fewer than five people. Another 56,580 businesses employed between five and 99 people while 2,862 businesses employed 100 or more individuals. Of these, just 77 businesses employed at least 1,000 workers. Figure 1, above, breaks down the number of establishments in South Carolina based on their size.

*[1] Establishments and employment data for South Carolina are sourced from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages. 

Small Businesses Are Growing Rapidly

Figure 2. Establishment Growth by Number of Employees, South Carolina, Q1 2015 to Q1 2025

Note: All datapoints are for Q1 of the year indicated on the X-axis.
The number of businesses in South Carolina with fewer than five employees has grown 96.5 percent over just a ten-year period—from 68,670 to 134,969. In comparison, establishments with between five and 99 employees have grown 24.6 percent over the period while those with more than 100 employees have grown 15.6 percent. The number of larger businesses—those with at least 1,000 employees—has remained mostly unchanged since Q1 2015, fluctuating between 74 and 80 over the period. Total employment has increased across establishments of all sizes, however. 

Professional Services and Healthcare Drive Small Business Growth  

Figure 3. Change in Number of Establishments With Fewer Than 100 Employees by Sector, South Carolina, Q1 2015 to Q1 2025

For businesses with fewer than 100 employees, the largest driver of establishment growth was the professional, scientific, and technical services sector, which added 20,351 small businesses between the first quarter of 2015 and the first quarter of 2025, an increase of 139.9 percent. The health care and social assistance sector added 10,204 small businesses, and the construction sector added 5,693. These three sectors accounted for nearly half of the total increase in businesses employing fewer than 100 people over the last decade. Figure 3, above, lists the ten sectors with the greatest increases in small businesses from Q1 2015 to Q1 2025. 
Conclusion

Small businesses have a major impact on South Carolina’s economy, employing thousands of people and providing consumers with a range of goods and services. The growth of establishments both small and large is a reflection of South Carolina’s commitment to creating an environment which allows businesses to flourish, no matter their size.