Top Five Fastest-Growing Industries for Small Business

by | Jan 9, 2023 | Business Strategy, Resources, Small Business | 0 comments

Top Five Fastest-Growing Industries for Small Business

Most entrepreneurs are looking to start businesses in stable and successful industries. Operating a small business in a fast-growing industry can provide you with more customers, career stability, and higher earnings opportunities. If you aim to build long-term business success, you need to know which industries in the United States are experiencing the fastest growth rates.

Fast-growing markets can offer a wide range of business opportunities for owners and investors. Here are the top five fastest-growing industries based on projected job growth, according to the U.S. Bureau of Labor Statistics:

1. Healthcare and social assistance

This industry is projected to add about 2.6 million jobs from 2021 to 2031, the most of any sector. Within this sector, the individual and family services industry could add the most employment and is expected to have the fastest annual employment growth of all healthcare and social assistance industries. Employment growth in this industry, as well as other related ones, is expected to be driven by the aging baby-boom population and a higher prevalence of chronic conditions.

2. Leisure and hospitality

This sector includes the arts, entertainment, recreation, accommodations, and food services. Nearly three-quarters of the jobs lost in leisure and hospitality during the COVID-19 pandemic in 2020 had yet to be recovered in 2021. Consequently, this category is projected to grow the fastest among all sectors over the 2021–31 decade, reflecting cyclical recovery. Seven of the top 20 fastest-growing industries are in the leisure and hospitality sector. In addition, the food services and drinking places industry is expected to have the largest employment increase of any industry.

3. Professional and business services

Demand for these services is expected to increase rapidly, driven by businesses’ need for technical expertise in areas such as IT solutions and cybersecurity, management, marketing research, and other consulting and technical services. This sector is projected to see the third-largest employment increase over the projected period.

4. Transportation and warehousing

These businesses move people and goods. Overall employment in transportation and material moving occupations is projected to grow 6 percent from 2021 to 2031, about as fast as the average for all occupations. In addition to new jobs from growth, opportunities arise from the need to replace workers who leave their occupations permanently. More than 1.9 million openings each year, on average, are projected to come from growth and replacement needs.

5. Educational services

This sector features specialized businesses, such as schools, colleges, universities, and training centers, that provide instruction and training in a wide variety of subjects. Overall employment in education, training, and library occupations is projected to grow 7 percent from 2021 to 2031, about as fast as the average for all occupations. In addition to new jobs from growth, opportunities arise from the need to replace workers who leave their occupations permanently.

Industry Loan Requirements

What industry you are involved in can impact your business funding options. Certain industries tend to be riskier than others; this, of course, is a concern for any lender as they need to carefully evaluate all aspects of the business before making a final decision—the amount of risk that your industry carries definitely represents one such aspect.

At First Union Lending, we make it our business to look at the entire picture and not just base loan approval on the basis of industry alone. This is why so many small business owners have come to us for fast and easy funding.

We encourage you to get in touch with us today. As mentioned, we base our decision on a comprehensive overview of your company, not on one single factor. Everyone’s story is different, and everyone brings something of value to the table. We’d love to hear your story and find a way to get you the cash you need now.