Microbiologics lab
Image Caption
Microbiologics lab / Paul Vincent

Minnesota Supports Businesses

Minnesota ranks first in the nation in five-year business survival rate (Source: MN DEED). That's because the state complements investments with collaborative networks to support innovative startups and bold entrepreneurs. 

With the highest venture capital investment per capita in the Midwest (Source: National Venture Capital Association 2024 Yearbook) and a robust offering of resources and incentives, Minnesota businesses don’t just sprout — they flourish. 

MINNESOTA SMALL BUSINESS LANDSCAPE 

$1.2+ billion — the amount raised in total venture capital by Minnesota startups across 184 deals in 2023 

68,536 — the number of business applications in 2023 

14,929 — the number of new employer establishments in 2022 

30% — increase in the number of business starts post-pandemic  

230 companies — the number of companies founded at the University of Minnesota since 2006 

Sources: PitchBook-NVCA Venture Monitor, Business Formation Statistics – U.S. Census, MN DEED, MN DEED, University of Minnesota 

 

MINNESOTA STARTUP SPOTLIGHT: ROCHESTER

Hear from leaders at the Destination Medical Center and Mayo Clinic Business Development in Rochester about why they feel Minnesota is filled with opportunities for founders and why investors should consider the power of startups in Minnesota.  

 

Minnesota’s Startup & Small Business Experts 

Minnesota's Office of Small Business and Innovation (MN OSBI) is your partner and resource to start and grow your business. MN OSBI serves startups, small businesses, and organizations that support them across the state by providing education, startup assistance, connections to resources, and access to capital. 

Within the MN OSBI, you can access Small Business Assistance, the Small Business Development Centers (SBDC), Community Partnerships, Launch Minnesota and the Child Care Office. Learn more about these organizations in the FAQ section below, or read on to find more resources for your startup journey. 

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Hennepin Made

Hennepin Made  / Paul Vincent

Start Your Small Business: The Checklist 

When starting a new business, there are many important decisions to make. Follow the steps below to ensure you’re taking the right steps for your business:  

  1. Reach out and get connected to local and state resources to help you prepare to launch your business. Research your competitors, the market, and potential customers. Then write a business plan. 
  2. Determine how to organize your business. Here are the types of business structures available in Minnesota. 
  3. Confirm your business name and follow these step-by-step instructions for registering your business. 
  4. Obtain a state tax ID number from the Minnesota Department of Revenue and federal tax ID number (EIN) from the IRS. 
  5. Secure necessary business prerequisites – does your business require licenses and permits? Insurance should be secured to mitigate risks. Also, be sure to protect your intellectual property (via patents, trademarks, copyrights and trade secret protections). 

Minnesota’s Office of Small Business and Innovation put together a few additional resources to help founders get started. 

 

Midtown Global Market

Midtown Global Market 

Finance Your Small Business 

Establishing and expanding small businesses are expensive endeavors. Even the most successful entrepreneurs need help accessing new funding streams. The Minnesota Department of Employment and Economic Development (MN DEED) helps Minnesota's small businesses access millions of dollars annually through grants, loans, and tax credits. MN DEED’s Office of Small Business and Innovation also provides grants to organizations that directly support businesses looking to start and scale.  

Use the following table to find financing opportunities that may be right for you and your business, or click here for a downloadable guide to see a list of funding opportunities available for startups and small businesses from the MN DEED. 

 

Faribault Mill's factory in Southern Minnesota

Faribault Mill's factory in Southern Minnesota  / Paul Vincent

Grow your Small Business 

Having a great idea is only the first step toward establishing a small business. Resources across the state are available to help founders and owners grow their companies into thriving small businesses

 

INCUBATORS & ACCELERATORS  

Over two dozen accelerators and incubators help startups across the state, and many of Minnesota’s largest companies are partners in accelerators and other startup programs. For example, Cargill and Ecolab support Techstars Farm to Fork accelerator, and Allianz and Securian Financial partner with gener8tor for the gener8tor Insurance & Wealth Accelerator  

One of the first programs created in Minnesota, the University Enterprise Laboratories, serves as an incubator for early-stage companies in life sciences, biotech, and other science and technology industries. The State of Minnesota is also proud to be named a national Smart Med Tech Hub and is working with Mayo Clinic, Medtronic, Medical Alley, and other private and public partners to host MNcubation, an incubator focused on accelerating smart med tech startups.  

 

CONSULTING, EDUCATION & TECHNICAL ASSISTANCE 

No matter where you set up shop, Minnesota boasts a connected and collaborative ecosystem across the state. In addition to hosting SBDCs, Minnesota partners with community organizations to provide founders and small businesses with the right resources at the right time. Explore the following table for resources and organizations that may be relevant for you and your small business: 



STARTUP COMPETITIONS & SHOWCASES

Founders can share their ideas at pitch competitions and startup showcases across the state. Two of the most prominent competitions in the state are: 

  • MN Cup, the largest statewide venture competition in the country hosted by the University of Minnesota’s Carlson School of Management 
  • Startup Showcase, an invite-only event for startups across the state to meet and pitch investors in Minnesota and beyond

 

Mayo Clinic - Minnesota BioBusiness Center

The Minnesota BioBusiness Center at Mayo Clinic / Paul Vincent

Other Small Business & Startup Resources 

Small businesses are the foundation of Minnesota's economy, ensuring vibrant main streets and powering economic growth. The State of Minnesota and its partners have numerous resources to help answer your questions and guide you in the right direction.  


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