South Dakota: 2026 Business Market Risk & Industry Survival
Rank #2 of 51 state markets. 10 industries tracked. Population: 886,667.
South Dakota ranks #2 out of 51 state markets by average entry risk (33.5). Administrative and Support Services carries the lowest risk at 21.7 (Low), while Finance and Insurance is the most challenging at 50.1 (Elevated). The 28.4-point spread signals significant variation across sectors. Healthcare and Social Assistance is the largest tracked employer with 70,442 jobs.
South Dakota: 33.5 Average Entry Risk
South Dakota at a Glance
Best Industries for New Entrants in South Dakota
Industries with the lowest entry risk in South Dakota.
Entry Risk by Industry in South Dakota
Compare market entry conditions across industries in South Dakota. Rank indicates position vs. all 50 states.
South Dakota Industry Data: 29,394 Establishments
| Industry | Entry Risk | Rank | Establishments | Employment | Avg Wage |
|---|---|---|---|---|---|
| Administrative and Support Services NAICS 56 | 21.7 | #2/51 | 2,538 | 13,700 | $49,659 |
| Real Estate and Rental and Leasing NAICS 53 | 26.4 | #4/51 | 1,366 | 4,399 | $54,973 |
| Other Services NAICS 81 | 28.9 | #1/51 | 2,547 | 13,220 | $46,437 |
| Healthcare and Social Assistance NAICS 62 | 31.4 | #11/51 | 2,929 | 70,442 | $67,273 |
| Professional, Scientific, and Technical Services NAICS 54 | 32.9 | #4/51 | 5,600 | 18,298 | $87,663 |
| Information NAICS 51 | 33.6 | #8/51 | 892 | 5,129 | $69,677 |
| Construction NAICS 23 | 34.7 | #9/51 | 4,405 | 29,227 | $67,917 |
| Accommodation and Food Services NAICS 72 | 36.7 | #23/51 | 2,612 | 42,495 | $23,413 |
| Retail Trade NAICS 44-45 | 38.9 | #7/51 | 3,810 | 54,087 | $37,589 |
| Finance and Insurance NAICS 52 | 50.1 | #24/51 | 2,695 | 22,575 | $90,089 |
Largest Industries in South Dakota by Employment
Metro Markets in South Dakota
2 metropolitan areas with industry-level market scores. Each links to its most favorable industry.
How South Dakota Compares to Neighboring States
Average entry risk across all tracked industries. Lower scores indicate better conditions for new businesses.
South Dakota: Frequently Asked Questions
2026 state-level data answers to common business-formation questions.
What is South Dakota's overall business entry risk score for 2026?
South Dakota averages 33.5 across 10 tracked industries, ranking #2 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 South Dakota?
Administrative and Support Services carries the lowest entry risk in South Dakota at 21.7 (Low). It employs 13,700 workers across 2,538 establishments.
Which sector is the most challenging for new businesses in South Dakota?
Finance and Insurance posts South Dakota's highest entry risk at 50.1 (Elevated). New entrants in this sector face conditions that favor incumbents.
How many businesses operate in South Dakota?
29,394 business establishments are tracked across 10 industries in South Dakota, employing 273,572 workers in 2026 data releases from the U.S. Census BDS and BLS QCEW.
What is South Dakota's largest industry by employment?
Healthcare and Social Assistance is the largest tracked employer in South Dakota with 70,442 jobs across 2,929 establishments and an entry risk score of 31.4.