Courtesy of Illinois Policy Institute

According to the Illinois Policy Institute, nearly 99 percent of net new jobs created since the pandemic have come from businesses with fewer than 20 employees – or about 172,000 jobs total. These businesses created over 19,000 jobs just last year, accounting for 89 percent of all net new Illinois jobs in 2024. Since 2020, small businesses or businesses with fewer than 50 employees have been the only firms to add jobs on net. All other employer groups, including large headquarters, remain over 66,000 jobs below pre-pandemic levels. This comes as state lawmakers have passed 70 tax and fee hikes during the past 15 years, many on businesses, resulting in $110 billion in extra taxes paid during that time. Illinois hands businesses the third-highest corporate income tax rate, the fourth-heaviest regulatory burden in the nation and a Top 10 worst unemployment insurance tax structure.

What to know about Illinois’ small business environment:

• Illinois is more dependent on small businesses than the rest of the country: Nationally, firms with fewer than 20 employees were responsible for 81% of net job growth since 2020; in Illinois the figure was 99%. Last year these businesses created 58% of new jobs nationwide but 89% in Illinois. 

• Small businesses have been leading job creators for over a decade: From 2010 to 2020, before the pandemic, businesses with fewer than 50 employees accounted for 64% of Illinois’ job growth – nearly 314,000 jobs.

• Small businesses deliver faster wage growth for workers: Small business wages have grown 8% faster than the statewide average and 24% faster than wages at the largest companies. Since 2020, wages at businesses with fewer than 50 employees have grown 30.6% compared to mid-sized firms at 28.7% and large employers at 24.6%

To read the full report, visit illin.is/shopsmall2025.

Photo Credit: Illinois Policy Institute