Running a small business is never easy, especially during periods of inflation. In 2023, when the average the inflation rate was 4.1%According to the survey, 35% of small businesses reported staff reductions as a result of rising costs questionnaire survey conducted by OnePoll on behalf of Melio among 1,000 small business owners.
By early 2024, 22 states and 38 counties and cities had raised their minimum wages, affecting 10 million staff nationwide, in response to American Institute of Economic Research — and many small businesses that employ them in their full-time positions.
Where do small business owners have to pay their employees the most? Small business loan company On board decided to learn more about this by analyzing U.S. Census Bureau data on businesses with fewer than 500 employees.
According to the study, Massachusetts, California and New York are the three states where small business owners can expect to pay their employees the highest wages, averaging $72,151, $67,237 and $66,924, respectively.
On the other hand, small business owners pay their employees the lowest average annual salary in Mississippi — $39,310, the data shows.
To see the full rating based on OnDeck research, take a look at the infographic below:
Image Source: Courtesy of OnDeck