IA

Iowa: 2026 Business Market Risk & Industry Survival

Rank #5 of 51 state markets. 10 industries tracked. Population: 3,190,369.

Iowa ranks #5 out of 51 state markets by average entry risk (35.5). Administrative and Support Services carries the lowest risk at 22.1 (Low), while Finance and Insurance is the most challenging at 54.3 (Elevated). The 32.2-point spread signals significant variation across sectors. Healthcare and Social Assistance is the largest tracked employer with 193,253 jobs.

Iowa: 35.5 Average Entry Risk

81,012
Total Establishments
Across tracked industries
859,665
Total Employment
Across tracked industries
35.5
Average Entry Risk
Across all industries

Iowa at a Glance

Best Industries for New Entrants in Iowa

Industries with the lowest entry risk in Iowa.

Entry Risk by Industry in Iowa

Compare market entry conditions across industries in Iowa. Rank indicates position vs. all 50 states.

Iowa Industry Data: 81,012 Establishments

Industry Entry Risk Rank Establishments Employment Avg Wage
Administrative and Support Services NAICS 56 22.1 #3/51 6,242 62,150 $50,589
Healthcare and Social Assistance NAICS 62 26.7 #4/51 12,818 193,253 $55,550
Professional, Scientific, and Technical Services NAICS 54 31.1 #2/51 12,541 58,215 $91,951
Other Services NAICS 81 32.5 #3/51 7,532 40,837 $48,281
Construction NAICS 23 34.3 #7/51 9,524 84,842 $73,507
Real Estate and Rental and Leasing NAICS 53 35.6 #16/51 3,834 14,551 $60,005
Information NAICS 51 38.3 #15/51 2,601 18,144 $86,195
Accommodation and Food Services NAICS 72 39.0 #29/51 7,405 122,420 $22,045
Retail Trade NAICS 44-45 40.8 #16/51 11,103 173,576 $34,865
Finance and Insurance NAICS 52 54.3 #35/51 7,412 91,677 $104,415

Largest Industries in Iowa by Employment

Metro Markets in Iowa

8 metropolitan areas with industry-level market scores. Each links to its most favorable industry.

How Iowa Compares to Neighboring States

Average entry risk across all tracked industries. Lower scores indicate better conditions for new businesses.

State Avg Entry Risk vs IA
Iowa 35.5
Nebraska 33.1 -2.4
South Dakota 33.5 -2.0
Wisconsin 33.9 -1.6
Minnesota 39.5 +4.0
Illinois 46.3 +10.8
Missouri 47.8 +12.3

Iowa: Frequently Asked Questions

2026 state-level data answers to common business-formation questions.

What is Iowa's overall business entry risk score for 2026?

Iowa averages 35.5 across 10 tracked industries, ranking #5 of 51 state markets. Lower scores indicate more favorable conditions; the national average sits near 44.

What is the easiest industry to start a business in within Iowa?

Administrative and Support Services carries the lowest entry risk in Iowa at 22.1 (Low). It employs 62,150 workers across 6,242 establishments.

Which sector is the most challenging for new businesses in Iowa?

Finance and Insurance posts Iowa's highest entry risk at 54.3 (Elevated). New entrants in this sector face conditions that favor incumbents.

How many businesses operate in Iowa?

81,012 business establishments are tracked across 10 industries in Iowa, employing 859,665 workers in 2026 data releases from the U.S. Census BDS and BLS QCEW.

What is Iowa's largest industry by employment?

Healthcare and Social Assistance is the largest tracked employer in Iowa with 193,253 jobs across 12,818 establishments and an entry risk score of 26.7.