5 Most Profitable Small Businesses in 2023

4. Information Technology

Average Net Margin: 16.62%

Information technology industry includes services like software development/maintenance, digital marketing and data analytics, among others. It is another highly profitable small business, with a net profit margin averaging 16.6%, according to NYU Stern School of Business. 

An advantage that small businesses have in the IT industry is the ability to quickly adapt to changing market trends and customer needs. Smaller teams can be more nimble and agile than larger corporations, which allows them to develop and release products more quickly. They can also be more customer-focused, providing personalized services and support that larger companies may not be able to offer.