Idaho Small Business Growth Trend Continues to Strengthen Across North Idaho Region
Sandpoint, North Idaho Lead State in Small Business Expansion
Bonner County, Idaho — Idaho’s commitment to free enterprise is showing measurable results, as the state’s small business sector continues to expand — particularly across the five northern counties of the Panhandle. From the Downtown Sandpoint Shopping District to the main streets of Coeur d’Alene and Kellogg, locally owned and operated businesses remain the defining economic force in the region.
According to data from the U.S. Census Bureau and the Idaho Department of Labor, the post-pandemic period has marked a notable surge in entrepreneurship and business ownership statewide. Between 2019 and 2021, Idaho reported the second-highest employment growth rate in the country, clocking in at 4.6% during that two-year period, according to U.S. Census Bureau Annual Population Estimates.
That growth has been driven largely by the state’s smallest employers. “All industries experienced growth in the number of active employers, but the highest increases were driven by entities with fewer than five employees in business and professional services, health care and construction,” officials from the Idaho Department of Labor said.
Bonner County by the Numbers
In North Idaho, businesses with fewer than 20 workers account for approximately 89% of all establishments in the region, representing 40% of the total private-sector workforce. The data, drawn from the U.S. Census Bureau, paints a detailed picture of the business landscape across each of the five northern counties.
In Bonner County, there are 1,833 total business establishments. Of those, 1,212 employ fewer than five people, 308 employ between five and nine workers, and 182 employ between 10 and 19. That means the overwhelming majority of Bonner County’s business community is made up of small, locally rooted operations — consistent with the character of communities like Sandpoint, Priest River, and Clark Fork.
Neighboring Boundary County reports 439 total establishments, with 295 employing fewer than five. Benewah County counts 275 total establishments, 179 of which fall in the under-five-employee category. Shoshone County reports 360 total establishments with 210 in the smallest employer tier. Kootenai County, home to the region’s largest city, reports 6,221 total establishments, with more than 2,500 employing fewer than 20 workers.
The Bureau of Labor Statistics notes that North Idaho’s figures align with national trends — approximately 80% of American business owners employ fewer than 10 people. North Idaho small business owners represent about 77% of the area’s business population, closely mirroring that national benchmark.
Idaho ranks among the top states in the country for small business growth overall, with tens of thousands of new businesses established across the state in recent years. Statewide figures continue to reflect consistent expansion, even as long-term regional data at the county level remains limited. Note that available data does not capture businesses that started and ceased operations between 2016 and 2026.
The broader economic environment in Idaho has supported this growth, though policy decisions at the state level continue to shape conditions for small employers. Readers interested in how state government decisions affect Idaho’s workforce can follow related coverage at Idaho News, including recent reporting on Gov. Brad Little’s veto of a bill that cut graduate medical education funding — a decision with potential downstream effects on Idaho’s healthcare workforce pipeline.
What Comes Next
As North Idaho’s population continues to grow, economic analysts and regional officials expect small businesses to remain at the core of that expansion — shaping not just the local economy, but the cultural identity of communities along Highway 95, around Lake Pend Oreille, and throughout the broader Panhandle region. The Downtown Sandpoint Shopping District, which has welcomed multiple new businesses while retaining long-standing members, stands as a visible symbol of that ongoing momentum.
The Idaho Department of Labor is expected to release updated employment figures as the calendar year progresses, offering a clearer picture of whether the post-pandemic growth trend is holding in 2026 and beyond. Local business owners and economic development organizations in Bonner County will be watching closely as those numbers emerge.