Comparable baseline
Arkansas at a glance
| Population | 3,114,791 | July 1, 2025; +3.3% since 2020 |
|---|---|---|
| Business applications | 5,023 | July 2026, seasonally adjusted |
| Trailing-12-month applications | 45,187 | 1,450.7 per 100,000 residents |
| High-propensity applications | 1,095 | 21.8% of July applications |
| Projected employer formations | 192 | Census four-quarter projection for July's cohort |
| Small businesses | 292,728 | SBA 2025 profile; underlying employer and nonemployer data are from 2022 |
| Small-business employment | 501,512 | 46.1% of private employment in 2022 |
| Employer establishments | 70,452 | 2023 County Business Patterns |
Application rankings cover the 50 states and use unrounded figures. Applications are qualifying EIN filings, not confirmed business openings. Measurement years differ because federal datasets are released on different schedules.
Arkansas had one of the sharpest increases in business applications in the country in July 2026. Census recorded 5,023 applications, up 61.8% from July 2025 and 30.6% from June. The year-over-year gain ranked second among the 50 states.
The longer view is positive but less dramatic. Arkansas recorded 45,187 applications from August 2025 through July 2026, 23.9% more than in the preceding 12 months and the 13th-fastest increase among states. July was therefore a spike within a growing year—not enough by itself to establish a new normal.
Arkansas moved up the per-capita table in July
Arkansas ranked 35th in raw July application volume. Adjusted for its population of about 3.11 million, it rose to 19th at 161.3 applications per 100,000 residents. That reversal shows why raw counts understate the intensity of filing activity in smaller states.
The full trailing year provides an important counterweight. Arkansas recorded 1,450.7 applications per 100,000 residents over that period, ranking 34th. The state was a leader in recent growth, but not in its broader application level.
July’s count was 165.3% above the 1,893 applications recorded in July 2019. Arkansas’s population grew 3.3% from the 2020 Census base to July 2025. These benchmarks use different starting dates and do not explain why applications rose; they show that the change in filing activity greatly exceeded the change in population.
Applications are qualifying EIN filings rather than confirmed openings. Census classified 1,095 July applications, or 21.8%, as high propensity, the 45th-highest share among states. Its model projected 192 employer formations from the July cohort within four quarters. The contrast matters: rapid growth in total applications does not automatically mean equally rapid growth in likely payroll employers.
The employment map has a central Arkansas and a Northwest Arkansas center
Pulaski County accounted for 235,849 jobs, or 21.1% of employment covered by 2023 County Business Patterns. Benton County held 12.5% and Washington County 9.0%. Together, the two Northwest Arkansas counties nearly matched Pulaski’s employment count, while the three counties accounted for 42.6% of the state total.
This gives Arkansas a more balanced geography than a state dominated by a single county. Little Rock anchors the central market, while Benton and Washington counties form a second major employment center in the northwest. These shares measure where covered private jobs were located, not where new applications originated.
Manufacturing is a meaningful part of that employer economy. It accounted for 164,240 jobs, or 14.7% of covered private employment—about 1.66 times the sector’s 50-state share. Health care and social assistance was larger by job count at 194,618, while retail trade employed 144,531. Manufacturing’s concentration is the more distinctive comparison; it should not be treated as the cause of the 2026 application increase without industry-specific application evidence.
The small-business total is mostly businesses without employees
The SBA reported 292,728 small businesses in Arkansas, using 2022 data. That combined 51,109 small employer firms with 241,619 nonemployer businesses. Nonemployers made up 82.5% of the total, close to the broad national pattern rather than an Arkansas outlier.
Small firms employed 501,512 people, representing 46.1% of private-sector employment. The figure ranked 30th among states. It describes the established small-employer base, not the outcome of the applications filed in 2026.
This distinction is practical as well as statistical. “Small business” encompasses both businesses without paid employees and firms with payroll, while formation filings may precede either—or may never become an operating business.
Official starting points for an Arkansas business
- Entity formation: The Secretary of State’s new-business page links formation filings, name availability, and startup information.
- State taxes: The Department of Finance and Administration’s taxpayer services page links Arkansas Taxpayer Access Point for registration and filing.
- Professional licensing: The Department of Labor and Licensing provides access to regulated occupations and licensing boards. City and county rules may also apply.
- Business assistance: The Arkansas Small Business and Technology Development Center offers confidential consulting to eligible for-profit businesses.
Source and calculation note
Application measures use the Census July 2026 Business Formation Statistics release. Monthly comparisons use seasonally adjusted figures. The trailing-year total sums unadjusted applications from August 2025 through July 2026 and compares them with August 2024 through July 2025. Rates use the July 1, 2025 population estimate. SBA measures use 2022 employer and nonemployer data; industry and county measures use 2023 County Business Patterns employment. BizFacts calculated changes, rates, shares, location quotients, and 50-state ranks from sources retrieved September 3, 2026.