Why Growing Minnesota Small Businesses Matters More Than Ever – Especially in Austin

At the Austin Area Chamber of Commerce, we often say that small businesses are the backbone of our local economy—and the data from the 2025 State of Business Retention and Expansion report backs that up in a big way.

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Across Minnesota, businesses with 20–99 employees create the largest share of new jobs. These businesses bring energy, wages, and stability to their communities. And when they grow, we all benefit. But here’s the challenge: since 2006, the number of small businesses in Minnesota has dropped and hasn’t bounced back. And the pace of job creation from these firms? It’s slowed down, too.

So what’s happening?

The Pressures Are Real—And Local

Small businesses in Minnesota, including here in Austin, are facing mounting pressures. From rising costs and high interest rates to workforce shortages and time-consuming regulations, it’s getting harder to survive, let alone thrive.

We’ve heard it all:

• “Insurance costs are eating into our margins.”

• “We’re spending more time on compliance than planning for growth.”

• “It’s tough to find workers—and harder to pay them competitive wages.”

And yet, local businesses continue to show up—for customers, for employees, and for our community.

What’s at Stake for Austin?

When small businesses grow, they hire more people, raise wages, and put down deeper roots. When they struggle, the ripple effect is felt everywhere—from Main Street storefronts to our nonprofit partnerships and community events.

But here’s the good news: we’re not powerless. Together, we can create a climate where businesses in Austin don’t just survive the pressures—they scale up and succeed.

How the Chamber Helps

At the Austin Area Chamber, we’re advocating for:

• Smarter, simpler regulations that don’t punish small teams

• Access to affordable capital and tools to reinvest in your business

• Stronger workforce pipelines and training opportunities

• Programs and partnerships that put your business in the spotlight

We’re here to promote, build, and advocate—for you.

Let’s Grow, Together

The economic road may be bumpy right now, but we believe in the power of small business. We see your commitment to the community, and we’re committed to supporting your growth in return.

If you're a local business owner facing headwinds, you’re not alone. Reach out. We’re here to connect you to resources, amplify your voice, and help you grow in ways that matter most.

Because when Austin’s businesses grow, so does Austin.