The United States was founded on principles of free enterprise — the idea that individuals have the freedom to own and operate businesses in the private sector.

Heavily influenced by economic thinkers such as Adam Smith, early American leaders embraced the belief that allowing individuals to pursue their passions in the new country would lead to a prosperous nation.;

It's no secret that Idaho's five northern counties are embodying that key principle of free enterprise. Walk down the streets of Coeur d'Alene, Sandpoint, or Kellogg, and you'll see an overwhelming number of small businesses compared to large-scale corporations. After all, nothing says “small town charm” like hand-crafted goodies made at a farm located just several miles away.

The region has always had a supportive economy for small-town endeavors, with the last five years, post-pandemic, marking a notable rise in entrepreneurs and individuals seeking ownership.

    Line graph of small business establishments in Idaho
 

Between 2019 and 2021, the state of Idaho reported the second-highest employment rates in the country during the two-year period, equivalent to a 4.6% growth, according to the U.S. Census Bureau Annual Population Estimates. Most of Idaho’s employment growth is identified by establishments with five or fewer employees.  

“All industries experienced growth in the number of active employers, but the highest increases were driven by entities with fewer than five employees in business and professional services, health care and construction,” officials from the Idaho Department of Labor said.  

In North Idaho, employers with fewer than 20 workers make up approximately 89% of businesses in the region and 40% of the total private workforce in the area.  

*Data courtesy of UNITES STATES CENSUS BUREAU 

The Bureau of Labor Statistics indicates that North Idaho’s small business statistics are in line with national trends, with approximately 80% of American employees owning a business with less than 10 employees and North Idaho small business owners representing 77% of the area’s population.  

While long-term regional data is limited, statewide figures highlight continued expansion across the state. Idaho ranks among the top states for small business growth, with tens of thousands of new businesses established in recent years. **  

As North Idaho continues to grow, small businesses are expected to remain at the center of that expansion — shaping not only the region’s economy, but also its identity.

**Data does not include small businesses that have started and stopped operations during the 2016-2026 timeframe.