NAICS 541513, 541512

IT Managed Service Providers in Chico, CA

The 2 ZIP codes assigned to Chico contained 7 IT & MSP establishments in 2023.

Establishments (2023)
7
2 ZIP codes
10 or more employees
n/a
Practical financing floor
Share of county
50%
Butte County
City population
105,081
2025 estimate

Figures cover the ZIP codes the U.S. Postal Service assigns to Chico (95926, 95973). ZIP areas are not municipal boundaries: they can extend beyond city limits and are shared between neighbouring places. This is a count of establishments in Chico's ZIP codes, not a count of businesses inside its city limits.

How this market compares

Chico against every other city in California on the same measure. City figures cover the ZIP codes assigned to the place rather than its municipal boundary, so they are compared as a share of the businesses in those same ZIP codes rather than per resident. Cities with fewer than 500 businesses in total are left unranked.

Thinly served0.22% of local businesses, against 0.71% statewide

A far smaller slice of the local business base than the statewide share. Either a genuine gap in provision or a market served from somewhere nearby. Worth checking the neighbouring places below before drawing a conclusion.

Vs state share
-69%
Share of local businesses
Rank by count
#156
of 243 cities
Rank by share
#211
of 230 ranked
Since 2020
-22%
Change in establishments

This compares how much of Chico’s business base is it managed service providers, against the California figure. Base: 3,159 establishments across all industries in the same ZIP codes, 2023. It does not measure revenue, profitability or whether a market is worth entering.

Business size mix

Chico is more consolidated than California as a whole: fewer micro-operators and a larger share of businesses with real headcount. Fewer targets, but the ones that exist are more likely to be financeable.

Share of establishmentsChicoCaliforniaDifference
Under 5 employeesOwner-operated, often no management layer0.0%75.6%-75.6%
5 to 49 employeesThe range most individual buyers target0.0%7.5%-7.5%
10 or more employeesPractical floor for acquisition financing0.0%3.6%-3.6%

Nearest comparable markets

The closest places to Chico that also have IT & MSP establishments on record. Useful for spotting a gap next door, or realising the market you are looking at is already served from the town over.

MarketEstablishmentsVs state share
Yuba City3-79%
Nevada City6+61%
Grass Valley4-59%
Redding13-47%
Lincoln10+61%

The wider Butte County market

Employment and payroll are reported at county level only, so the figures below describe the county Chico sits in.

County establishments (2023)
14
Butte County
County employees
129
Mid-March employment
County annual payroll
$12M
All establishments
Full IT & MSP data for Butte County

What acquirers look at

Contracted monthly recurring revenue per seat is the model that trades well; break-fix and project revenue is not. Client concentration and tech debt drive most valuation adjustments.

Other industries in Chico

Nearby cities

Sources

  1. U.S. Census Bureau, 2023 ZIP Code Business Patterns. Establishment counts and size distribution by ZIP code and NAICS, aggregated over the ZIP codes assigned to each city. Retrieved 2026-09-08.
  2. U.S. Census Bureau, 2023 County Business Patterns. Establishment counts, employment and annual payroll by NAICS. Retrieved 2026-09-08.
  3. U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (2026Q1). Quarterly establishment counts and employment for employers covered by unemployment insurance. Retrieved 2026-09-08.