Update to the State of Microbusinesses in Alabama
- March 11th, 2026
CBER’s Director of Demographics and Socioeconomic Analysis, Dr. Nyesha C. Black, recently released an updated brief examining the State of Microbusinesses in Alabama. The report analyzes establishment trends, payroll activity, employment patterns, and industry distribution among the state’s smallest firms using data from the U.S. Census Bureau’s County Business Patterns (CBP).
A microbusiness is defined as an employer establishment with fewer than 10 employees. According to the latest data, Alabama had 74,232 microbusiness establishments in 2023, representing 70.2 percent of all employer establishments statewide. These firms collectively supported 237,053 jobs and generated $11.4 billion in payroll, demonstrating the significant role that very small businesses play in Alabama’s economy.
Microbusiness activity is widely distributed across industries, though it is most concentrated in retail trade, professional services, health care and social assistance, construction, and other service-based sectors. Retail trade alone accounted for 12,602 microbusiness establishments, or 17 percent of all microbusinesses in the state.
While microbusinesses are smaller in scale than larger firms, they remain a foundational component of Alabama’s economic structure — supporting local employment, entrepreneurship, and business diversity across communities throughout the state.
More details can be found in the State of Microbusinesses in Alabama updated report here. All questions and inquiries can be directed to Dr. Nyesha Black at ncblack@ua.edu.