Entrepreneurship can be an exciting venture for individuals, especially when you see your vision take shape and shape. However, you want to ensure that your business will be successful in the long term.
Successful business starts with a profitable and scalable business idea and then performs your own research into that particular business and its business model. From there, you can create a business plan that outlines the strategies and steps you will implement to help your business achieve your goals.
This guide focuses on the most profitable business industries and uses data to back up the success and growth potential of those business ideas.
Most profitable businesses by industry
The Federal Reserve Bank looked into small businesses in 2024 and discovered how businesses apply funding through a credit check of small businesses. It deals with 7,000 companies, showing the solid landscape of the most popular industries that employers choose when they enter the business.
These industries include:
| industry | % of employers responded to the 2024 Small Business Credit Survey |
|---|---|
| Professional Services and Real Estate | 20% |
| Non-manufactured product production | 19% |
| Business Support and Consumer Services | 15% |
| retail | 13% |
| Healthcare and education | 13% |
| Leisure and hospitality | 11% |
| Finance and Insurance | 6% |
| Manufacturing | 3% |
Source: Federal Reserve Bank’s 2024 Small Business Credit Survey*
1. Professional Services and Real Estate
Professional Services is a wide range of fields, any service that can be given to another business or business professional. Professional services include graphic design, marketing, search engine optimization, data and information services, scientific research, accounting or consulting.
It totalled $39.33 billion in 2024, according to Ibisworld, a management consultant for a data research company. The industry rose 2.4% in the same year. Consulting is often provided by small business owners who work with multiple businesses in specialist areas such as marketing and business development.
Data scientists are also in demand. The data scientist industry is projected to increase by 36% between 2023 and 2033, according to the U.S. Bureau of Labor Statistics’ Occupational Outlook Handbook. The median salary for a data scientist is $108,020. In this industry, small business owners can work as data scientists for one or more companies, conducting data research and analysis for companies that require decision-making and establishment of authority (such as media relations).
Real estate is another popular industry. Real estate agents can work for themselves or for real estate institutions. According to Payscale, the average real estate agent earns $59,914 a year.
2. Non-manufactured Product Products
According to a Federal Reserve report on employers, production of non-manufactured goods includes agriculture, construction, wholesale, transportation and warehouses. These industries collectively comprise 19% of survey responses, accounting for over 1,400 SMEs.
It accounts for 5.5% of the economy, resulting in $1.537 trillion in 2023, according to the US Department of Agriculture, agriculture and related industries. If you want to enter the agricultural industry, you will need the real estate, equipment and products you want to sell. We recommend buying a farm already in production to further grow or sustain your business. Luckily, you can get federal and state farm grants and farm loans to help you through the startup stage.
Another option is warehouse distribution, where products are sourced and distributed from a variety of businesses. According to Ibisworld, the industry accounted for $42.2 billion in 2024, up 2.6% year-on-year.
3. Finance and Insurance
The financial industry touches on many areas of life, from personal budgeting to business lending to wealth and asset management. Due to its widespread effect, the financial industry is a large part of the economy.
According to Selectusa, part of the International Trade Bureau, the finance and insurance industry accounted for 7.3% of gross domestic product in 2023. Gross domestic product consists of the products and services that make up the American economy.
According to Selectusa, the banks make up one of the largest financial sectors, accounting for $23.7 trillion in assets and earning $38.4 billion a quarter. Asset management is also another highly profitable financial sector that manages $53.1 trillion in retirement assets. The insurance company has brought in a total of $1.9 trillion in 2023.
If you are starting your own business, you can break into the financial services industry in a variety of ways. For example, you can open your own insurance agent as a broker for a major insurance company. Alternatively, you can become a certified public accountant (CPA), provide accounting services to small businesses and open your own business. You can also be certified as a Financial Advisor or Wealth Management Professional.
4. Business Support and Consumer Services
Business support and consumer services include administrative roles to support business efforts, as well as remedial services such as petroleum and chemical cleanup and waste management. These industries are what the Federal Reserve Bank refers to in its report on employer companies as business support and consumer services.
This broad section accounts for 15% of companies that responded to the 2024 SME credit report, but its administrative role is not the most vibrant industry. According to the U.S. Bureau of Labor Statistics, secretaries and administrative assistants are expected to increase by 1.00% between 2023 and 2033. The average administrative assistant earns $46,010 a year.
Companies can increasingly outsource administrative tasks to self-employed individuals. This saves the company money while offering a Prime Market to small business owners. If you are interested in administrative roles, consider working with multiple SMEs to implement adequate work.
5. retail
Retail stores include businesses that sell products or services to customers, such as in-store or online businesses. According to Statista, in 2023, the retail industry constituted $7.2 trillion in domestic production in 2023.
That number is almost five times more than agriculture, and retailers are the largest private industry employing Americans. According to Statista, the retail industry is expected to grow to $10.4 trillion by 2028, up over $147 billion compared to the previous year.
To jump into retail stores, you need the products and business ideas you want to bring to the market. You can then open the shop online or in your local community. Online stores have the advantage of starting with minimal overhead costs, but brick and mortar stores can offer in-person events to attract communities and attract new customers.
6. Healthcare and education
Healthcare is a booming industry, accounting for 17.6% of gross domestic product in 2023, according to the Centers for Medicare and Medicaid Services. The average growth rate is projected to be 5.6% between 2023 and 2032. Gross domestic product is projected to increase by an average of 4.3%.
In 2023, medical expenses increased by 7.5%. Medicare spending increased by 8.1%, Medicaid spending increased by 7.9%, and private health insurance spending increased by 11.5%.
While healthcare may not be considered a natural choice for small businesses, there are independently owned medical practices, including general medical care, dental practices and mental health care consulting.
Education is similar in that it includes public and private institutions and online learning developed by fintech companies such as ABCMouse.com, Desire2Learn and Blackboard Inc. According to a survey by Grandview, education is expected to grow from $2.50 trillion to $5.66 trillion by 2030, with an annual growth rate of 12.5%. If you want to educate, you can create learning games for students and websites to learn about specific topics such as science, mathematics, art and more.
7. Leisure and hospitality
Entering the leisure and hospitality industry may be as easy as listing rooms in your Airbnb home. Or it means opening a hotel or offering travel experiences such as horse riding, zip lining, cooking, and art classes.
According to the U.S. Bureau of Labor Statistics, the leisure and hospitality industry has become the fastest growing industry, adding 23.1% of new jobs entering the US economy between 2021 and 2031.
8. Manufacturing
According to the National Institute of Standards and Technology, manufacturing is a profitable industry. The industry contributed 10.2% of gross domestic product in 2023, bringing $2.3 trillion. Manufacturing accounts for 9.7% of US employment.
Entrepreneurs who like to collaborate by hand can consider opening their own manufacturing companies, producing products that can be sold to other companies, or distributing them to warehouses and stores.
The most profitable small and medium-sized businesses based on profit margins
If you’re wondering which businesses make the most money, Kentley Insights explores the top 20 industries with high profit margins and looks at the proportion of profitable businesses in each industry.
| industry | Profit ratio |
|---|---|
| Investment Banking and Securities Transactions | 57.1% |
| Credit brokerage activities | 43.3% |
| Exchange with stock exchanges | 41.2% |
| International Trade Funds | 40.00% |
| Self Storage | 39.5% |
| Software and Game Publishers | 37.4% |
| Intellectual Property and Brand License | 31.9% |
| Manufacturing of computers and peripherals | 31.8% |
| Pharmaceutical and Medical Manufacturing | 31.8% |
| Issuing a credit card | 28.8% |
| Rental and leasing of automobile equipment | 28.7% |
| Hosting and Data Centers | 27.5% |
| Semiconductor manufacturing | 25.2% |
| Real Estate List and Escrow | 21.7% |
| Rail transport | 20.4% |
| Savings institutions and credit unions | 20.2% |
| Soap and Wash Compound Manufacturing | 19.2% |
| Legal Services | 19.2% |
| Scientific Research and Development Services | 18.1% |
| Beverage and cigarette manufacturing | 18.1% |
Conclusion
Business success depends on a variety of factors, including the profitable market for business ideas. By examining the profitability of other companies in the market today, you can see which businesses are most successful.
Once you narrow your selection, you can see specific competitors and how you position yourself in your message and ads. Think about how to distinguish yourself from your competitors and give them solid ground to stand up when starting a small business.
FAQ
*The Federal Reserve Banks and the Federal Reserve cannot guarantee data or analysis derived from these data once the data is acquired. Fedsmallbusiness.org.
