Most Profitable Small Businesses

Stock prices and mergers often take center stage in business news reports, while small businesses are treated more like the ensemble cast. But maybe it should be the other way around. Small businesses account for a staggering 99.9% of American companies, according to the U.S. Small Business Administration Office of Advocacy.

And when they say small, they mean small. The majority of small businesses have one owner and no staff, and many have fewer than 20 employees. Still, nearly half of all jobs come from small businesses. In the past 25 years, small businesses have accounted for more than two-thirds of U.S. jobs.

With so much focus on tech giants and mega-corporations, sometimes the more subtle trends and new ideas coming from small businesses aren't as apparent. Meaningful analysis of the U.S. economy should examine what's happening in businesses of all sizes.

During 2022, the most profitable small businesses showed many entrepreneurs using their skills and interests to help other companies grow. Others focused on providing value by making everyday life more convenient or pleasant. Both online and in-person services have displayed solid growth and earning potential.

According to NerdWallet.com, these were last year's most profitable types of small businesses.

• Food trucks
• Car wash services
• Auto repair
• Personal trainers
• Newborn and post-pregnancy services
• Enrichment activities for children
• Mobile apps and entertainment for children
• Shared accessories and attire
• Shared home improvement equipment
• Vacation rentals
• Electronics repair
• Academics courses
• Language courses
• Business or marketing courses
• Personal wellness
• Courses in hobbies or interests
• Bookkeeping and accounting
• Consulting
• IT support
• Graphic design
• Social media management
• Marketing copywriter
• Virtual assistant services