By William Smith
Big Picture: Stillwater’s Economic Landscape
Stillwater has around 909 businesses employing nearly 12,000 people within the city, drawing from a labor force of approximately 9,600 individuals aged 16 and up.
Among these firms, key sectors include healthcare/social assistance, retail, professional services, and accommodation/food service. About 3,100 people commute into Stillwater for work each day — evidence that the city plays a regional role in keeping employers moving. The average commute time is about 20–21 minutes. Roughly 1,900 residents work from home. Household income levels are healthy: average individual income is in the mid-$60,000s, with household incomes even higher. Housing values are elevated, reflecting both demand and the city’s appeal.
Entrepreneurship & Growing Self-Employment Trends
Across Minnesota, self-employment (non-employer businesses) has surged — there are now more than 450,000 such establishments. Over recent years growth has been especially strong in Transportation & Warehousing, professional, scientific & technical services, education, health care/social assistance, and real estate. Women now own about 40% of non-employer firms.
For Stillwater entrepreneurs, this means opportunity. Starting small — even solo — is viable, particularly in service-oriented fields. The relatively short commute for many local workers and steady household incomes suggest there’s a customer base for businesses rooted here in town.
Support Tools & Resources Available Locally
The City of Stillwater operates an Economic Development Authority (EDA) which provides site review, analysis, and financing support. There are a host of financial resources local business owners might tap including Tax Increment Financing (TIF), tax abatement, and programs through the Washington County Community Development Agency.
Stillwater also maintains a Green Business Directory, partners for site selection to aid finding suitable locations, and maintains communication with local business community via its EDA. Intention is to activate underused properties, improve visibility, preserve downtown character, and promote job growth near housing.
Challenges & Key Considerations for Local Businesses
While opportunities are real, entrepreneurs need to plan thoughtfully around a few challenges:
- Costs: High housing values and elevated operating costs in historic downtown areas translate into premium prices for rents, utilities, and maintenance.
- Workforce availability: Though there are many residents with post-secondary education, finding staff in certain trades or service roles remains a concern throughout Minnesota, and Stillwater is not immune.
- Competition & niche focus: Given the concentration of shops, restaurants, and retail catering to both residents and tourists, businesses may need sharp positioning to stand out.
- Regulatory & site constraints: Historic buildings, zoning rules, and available land for expansion (especially in downtown or the West Stillwater Business Park) can limit what business models can grow or locate easily.
Strategic Moves for Entrepreneurs
Here are actions local business owners and those considering starting a business in Stillwater might take to strengthen chances of success:
- Tap into available grants and funds early: Explore programs like TIF, county or state job-creation grants, and regional aid from CDA or state agencies.
- Leverage coworking/incubator spaces: Shared spaces reduce up-front costs and offer community and visibility — especially for service, creative, or tech startups.
- Plan with location and customer base in mind: Central downtown offers foot traffic and tourist appeal; business parks or mixed-use nearby may offer better space for scale.
- Focus on customer experience and specialization: Small businesses in Minnesota are thriving in fields driven by personal service, specialization or authenticity—things large firms often struggle to replicate.
- Stay connected to economic development programs: Engage with city and county entities; staying aware of upcoming plans (e.g. Framework Plans, activation of underused commercial sites) can open doors.
Looking Ahead
Overall, Stillwater presents a mix of opportunity and complexity for business. With strong incomes, a stable resident base, and public resources already in place, entrepreneurs who pair creativity with careful strategy stand a good chance of building something that lasts. For those investing time into location, financing, and specialization, the path looks promising.