AL
Alabama: 2026 Business Market Risk & Industry Survival
Rank #6 of 51 state markets. 10 industries tracked. Population: 5,024,279.
Alabama ranks #6 out of 51 state markets by average entry risk (37.6). Professional, Scientific, and Technical Services carries the lowest risk at 29.4 (Low), while Finance and Insurance is the most challenging at 48.4 (Elevated). The 19.0-point spread signals significant variation across sectors. Retail Trade is the largest tracked employer with 239,581 jobs.
Alabama: 37.6 Average Entry Risk
125,416
Total Establishments
Across tracked industries
1,186,183
Total Employment
Across tracked industries
37.6
Average Entry Risk
Across all industries
Alabama at a Glance
Best Industries for New Entrants in Alabama
Industries with the lowest entry risk in Alabama.
Entry Risk by Industry in Alabama
Compare market entry conditions across industries in Alabama. Rank indicates position vs. all 50 states.
Lower is better
Low Mod Elev High
Construction
#4
Information
#5
Other Services
#11
Retail Trade
#36
Alabama Industry Data: 125,416 Establishments
| Industry | Entry Risk | Rank | Establishments | Employment | Avg Wage |
|---|---|---|---|---|---|
| Professional, Scientific, and Technical Services NAICS 54 | 29.4 | #1/51 | 20,714 | 125,893 | $100,468 |
| Construction NAICS 23 | 30.3 | #4/51 | 12,667 | 106,835 | $73,164 |
| Administrative and Support Services NAICS 56 | 31.7 | #9/51 | 9,508 | 120,533 | $42,632 |
| Real Estate and Rental and Leasing NAICS 53 | 31.9 | #13/51 | 6,565 | 26,541 | $61,266 |
| Information NAICS 51 | 32.1 | #5/51 | 4,999 | 22,806 | $85,351 |
| Other Services NAICS 81 | 38.1 | #11/51 | 9,762 | 49,788 | $50,817 |
| Healthcare and Social Assistance NAICS 62 | 43.6 | #31/51 | 20,646 | 231,581 | $59,973 |
| Accommodation and Food Services NAICS 72 | 44.1 | #37/51 | 11,350 | 187,537 | $23,398 |
| Retail Trade NAICS 44-45 | 46.4 | #36/51 | 19,398 | 239,581 | $37,136 |
| Finance and Insurance NAICS 52 | 48.4 | #18/51 | 9,807 | 75,088 | $96,846 |
Largest Industries in Alabama by Employment
How Alabama Compares to Neighboring States
Average entry risk across all tracked industries. Lower scores indicate better conditions for new businesses.
| State | Avg Entry Risk | vs AL |
|---|---|---|
| Alabama | 37.6 | — |
| Tennessee | 41.1 | +3.5 |
| Mississippi | 41.2 | +3.6 |
| Georgia | 46.8 | +9.2 |
| Florida | 50.8 | +13.2 |