Doing Business in Kansas
Why Do Business in Kansas?
Many business owners and entrepreneurs have launched and grown enterprises in the Sunflower state. The combination of a favorable business environment, affordable housing, and a growing population make it an attractive location. In fact, there are over 258,012 small businesses across Kansas, accounting for 50% of all state employment. Not only that, but in 2019 banks issued $691.3M in new loans to state businesses with revenues of $1M or less. While the economic and demographic conditions are certainly favorable, often there are important details to consider. To help business owners and operators, a brief overview of doing business in Kansas is outlined below.
Kansas Economic Profile
The economy of Kansas is more diverse than many may realize. Site Selection magazine recently ranked Kansas as having the top business climate in the West North Central Region. While well known for being an agricultural state, there are several other high-performing industries in Wichita, Kansas City, and beyond. In fact, the largest employers by industry within the state include health care, social assistance, retail trade, accommodation, food services, professional management, finance, real estate, and administrative support services. Business ownership across the state is diverse with 42.5% of businesses being women-owned, 7.3% veteran-owned, 5.6% Hispanic-owned, and 6.9% owned by racial minorities. In other words, there is far more in Kansas than just agriculture and farms.
Facilitating Business Growth
The state is committed to providing a business-friendly environment to support and promote the growth of targeted industries. In fact, there are several such programs available through the Kansas Department of Commerce to help businesses locate, hire, expand, invest, and grow within the state. Beyond this, there are financing options, tax credits, and incentives to make it easier to conduct business. Incentives programs include Kansas Industrial Training (KIT), Utility Incentive Programs, and Promoting Employment Across Kansas (PEAK). Current state tax credits include the Corporate Income Tax Credit, Machinery & Equipment Expensing Deduction, Angel Investor Tax Credit, and the Alternative-fuel Tax Credit.
Business Resources
Below is a list of various business resources to guide those new to Kansas and others who have been here for years.