Delaware is home to diverse industries that contribute significantly to its economy. Delaware boasts a business landscape from creation to finance that attracts entrepreneurs and investors worldwide. We will delve deeper into the various industries.
Why Delaware is a great place to do Business
Delaware considers to many to be the best state in America for businesses to operate in. According to CNBC’s Top States for Business survey, the state has rank as the most business state in America. There are several reasons why Delaware is a great place to do Business.
Delaware has a reputation for having business corporate laws. It is Delaware has a long history of business laws, including its Court of Chancery, which is dedicated to resolve corporate legal disputes quickly and efficiently.
It has a business climate, reliable infrastructure, a sophisticated and diverse workforce, and a convenient Mid-Atlantic location. Delaware’s site offers easy access to major markets in the Northeast, including New York City, Washington, D.C., and Philadelphia.
Delaware has a low corporate tax rate, ranging from zero to 6.6%, and the state is often referred to as a tax haven. Incorporating a company in Delaware comes with many tax perks, including low franchise taxes and small agents, annual reports, and registration fees. Delaware only taxes companies that operate within its borders. It means businesses do not pay Delaware state taxes if they have no physical office or do Business directly within the state.
Delaware statutes are very flexible with business formation. Delaware only requires one director for a new nonprofit. This flexibility makes it easier for businesses to form and operate in Delaware. The tiny state size of Delaware creates a close-knit community that makes it easy to get to know everyone in town and feel at home.
Top industries in Delaware
Delaware is home to a diverse range of industries supporting large and small businesses. With a population of around 990,000, the state has a median income of $35,419. Manufacturing, chemicals, is a significant economic enterprise in Delaware, with DuPont, Hercules, and AstraZeneca being the major chemical companies headquartered in the state.
Other top industries in Delaware include healthcare and biotechnology. ChristianaCare is the second largest employer in the state. The healthcare giant employs 3,000 people in Delaware and more 3,000 in Maryland. The Delaware Technology Park is home to the Delaware Biotechnology Institute and the Fraunhofer Center for Molecular Biotechnology.
Delaware’s industries include doctor’s offices, hospitals, and banking, with Citicorp Banking and CMH Capital being major employers in the state. It provides jobs for state employees at various levels.
Delaware is a corporate haven, with over 50% of all U.S. trade companies and 63% of the Fortune 500 incorporated. Delaware’s business-friendly corporation law makes it attractive as a corporate haven. Franchise taxes on Delaware corporations supply about one-fifth of its state revenue.
Emerging industries in Delaware
1. Healthcare Industry: According to the Bureau of Labor Statistics, the healthcare industry project to grow by 9.1% by 2029. Delaware is home to many of the nation’s healthcare empires, including pharmaceutical and medical technology giants like AgilentTechnologies, Adesis, DuPont, Intervet, MIDI, and Syngenta.
2. Cannabis Industry: The legalization and sale of cannabis are advancing not in the U.S. but globally. With more countries, like Canada, and several U.S. states, legalizing cannabis for medicinal and recreational use. The business potential of the industry is hard to ignore. The cannabis industry estimates to be worth $61 billion in the U.S. alone. Delaware is no exception, and there are many opportunities for entrepreneurs looking to create disruptive startups in this field.
3. Manufacturing Industry: Manufacturing is the state’s third-largest traded sector. Delaware’s industry leadership has created deep supply chains supporting new businesses’ market entry.
4. Clean Technologies Industry: Clean technologies, or cleantech, refer to companies that provide friendly products and services. Delaware is becoming a hub for the clean technologies industry, with companies like Bloom Energy. It produces clean and on-site power solutions, and EnviroKure, which converts waste into fertilizer, leading the way. As the world prioritizes sustainability, the demand for clean technologies will grow.
5. Real Estate Industry: Real estate is an evergreen industry that continues to grow, and Delaware is no exception. Delaware Nation Industries is a wholly-owned tribal organization in Oklahoma. It offers a wide range of business growth strategies by combining tribal advantages with industry.
Support for small businesses
Small Business Administration (SBA) provides resources to lenders and funding for small businesses to plan, start, and grow their operations. The government provides support through funding options. It is including loans and grants for businesses impact the COVID-19 pandemic and resources to help import or export goods.
There are options like TechSolutions. It offers 24/7 remote tech support for businesses of all sizes starting at $99 per month, and BP’s picks for the Best IT
Support Companies. Small businesses can benefit from community support. Encouraging others to share local businesses on social media. MyVA360 suggests checking in with business owners. It is writing positive reviews, and providing feedback to help improve their services and retain customers.
The National Institutes of Health (NIH) provides resources for entrepreneurs in the commercialization stage, with various programs and resources available to help bring innovations to life.