Montgomery County ranked second among Pennsylvania counties that have the greatest small business presence, according to SmartAsset.

SmartAsset based the rankings on five factors: the proportion of people in a county with small business income, the reported business income, the amount of tax a potential resident must pay on their income, the five-year change of small business tax returns, and the five-year change of small, business income.

The analysts at SmartAsset compared the number of tax returns that report small business income and compared that to the total tax-filing population of the region.

Then they looked at how the total amount of small business income compared to the overall amount of income reported in each region. They then calculated the change in these variables over a 5-year period.

Income taxes can play a determining role in the financial success of a small business, so SmartAsset also compared income tax burdens across the counties.

All five factors were then indexed and equally weighted. The higher the Small Business Index, the higher the ranking.

Here is how Montgomery County stacked up:

• Small Business Returns: 23.45%
• Small Business Income: 9.33%
• Income Taxes: $9,912
• 5-Year Change in Small Business Return Index: 43.89
• Small Business Returns Index: 35.19

Chester County earned the top spot in Pennsylvania with a Small Business Returns Index of 36.60.

To see how other Pennsylvania counties including neighboring Bucks, Berks, and Philadelphia counties ranked, visit SmartAsset.

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