Are you considering launching a small business in Chicago? If so, this guide to the top industries in Chicago is just what you need. In this article, you’ll learn the industries with the most potential and areas for future business growth – all within the metro Chicago area, from food-based businesses to financial enterprises.
How did Chicago rise?
Since the 1850s, Chicago has thrived as a center for commerce. As railroads grew, Chicago’s location made it a hub of trade, especially lumber, iron, and coal. As those industries expanded, related industries did, too, including finance, insurance, manufacturing, shipping, and logistics. Along with the city’s rise, there was a significant increase in population, largely driven by immigration, that helped the city flourish, economically and culturally.
Although technology has altered the business landscape in Chicago (as it has everywhere), these historically significant industries continue today alongside new industries.
While Chicago ranks in the top metros for Gross Domestic Product creation, with nearly $833 billion in 2022, the cost of living in Chicago, including housing, falls in the middle of major U.S. metro areas. This means that this metro area of nearly 9.5 million people has both the economic power and the population needed to fuel growth.
What industries support Chicago’s growth?
Chicago’s economy has expanded and stayed strong mainly due to the diversity of industries, as well as a strong workforce. These industries formed the basis of Chicago’s progress and are still positioned for ongoing strength:
- Manufacturing: Chicago has a long history of manufacturing-industry dominance, and today, it still accounts for a significant part of the local economy. While specific businesses have changed, food-based manufacturing, transportation, and equipment-manufacturing businesses continue to thrive.
- Transportation, distribution, and logistics: Since the city’s founding, its central location within the U.S. and its proximity to Canada, as well as its location as a railroad and waterway hub, have made it a center for trade, distribution, and logistics (TD&L).
Today, there are new opportunities for small businesses focused on TD&L that use technology, including artificial intelligence (AI) to boost efficiencies, as well as for TD&L that has more sustainable, green-energy solutions for moving goods and people around the country.
- Finance: As commerce boomed, so did Chicago’s need for financial services – in fact, the first banks and exchanges in the U.S. were established here. Today, it remains a national and global hub for finance, with tremendous opportunities in the banking, insurance, securities, and commodities sectors. Current growth is driven by financial technology (fintech) businesses, financial markets, and risk-management solutions, like insurance.
What are the emerging industries in Chicago?
Along with historically significant industries that have evolved to meet twenty-first-century needs and opportunities, some industries have arisen that continue to experience tremendous growth.
These areas offer incredible opportunities for small businesses:
- Tourism and travel: All things related to travel and tourism have the potential to boom in Chicago because of its reputation as an arts, history, food, and event destination. This attracts an increasing pool of visitors from around the U.S. and worldwide. Restaurants, inns and hotels, galleries, personal services (like salons and spas), retail shops, tourism-based and travel services, and more are great opportunities for small businesses.
- Life sciences and healthcare: These are already significant in the Chicago area and are positioned for additional growth. For example, small businesses that can leverage and optimize technology to improve the cost and use of healthcare services will be in demand.
There are also great opportunities for specialty pharmaceuticals and research and development (R&D) in life sciences and healthcare – and these areas benefit from strong partnerships with the area’s many colleges and universities. - Innovation and technology: While technology is part of our daily lives, small businesses have great opportunities in quantum computing, data analytics, nanotech, legal and fintech, robotics, and gaming, thanks to the city’s identification of this as a priority area.
Why is Chicago a great place to start a business?
In addition to its great location, its relative affordability for business and personal success, and its history of welcoming a diversity of businesses and people, Chicago also offers you:
- Access to talent: With nearly 10 million people, dozens of exceptional colleges and universities, and a skilled workforce, Chicago has the human resources needed for success.
- Strong startup ecosystem: There are about 100 business accelerators and incubators in the Chicago metro area to support launch and expansion, with access to mentors, experts, financing, and more.
- Strategic location: No matter how much the industries around it change, one thing never will – Chicago’s outstanding location. Whether you want to serve people living or visiting, or be based here and reach a global audience for your goods and services, Chicago’s location works.
- Diverse economy: While you’ve seen many of the industries that power Chicago, there are hundreds more within the city’s and region’s economic diversity that provide opportunities for businesses and their workforces.
- Supportive environment for businesses: From local government agencies that strongly support businesses to lenders that focus on financing entrepreneurial dreams, Chicago has a supportive environment that helps small businesses thrive.
No matter where your existing or dream business fits into the top industries in Chicago, you’ll find the support and financing you need to bring your vision to fruition.
If you need financing for your Chicago-area business, Pursuit can help
For new and existing small businesses in Chicago and beyond, Pursuit has the financing you need to turn your business dreams into reality. You can apply for up to $500,000 in financing for working capital, equipment, and so much more. Explore our full lending footprint to see what is available in your area.
We also have decades of experience helping entrepreneurs like you with loans that are affordable, attainable, and that set you up for success. Contact us to learn more!