The state of New York is the third largest economy in the US, behind Texas and California in terms of gross state product. With a GDP of around $1.7 trillion, the state is easily comparable with countries like Canada and South Korea in terms of financial might.
The economy of New York is driven mostly by big businesses, especially in the Manhattan area, which is the leading center of banking and finance in the United States. However, small businesses have grown over the years to take up a huge share of the state’s economic pie.
Below is an interesting list of small business statistics from the state of New York:
- There are 2.2 million small businesses (SMBs) in New York, making up 99.8% of all businesses in the state.
- Small businesses employ 4.1 million people, which is 49.8% of all state employees.
- 98% of New York businesses have fewer than 100 employees.
- Small patenting firms create 13 more patents per employee than large patenting firms.
- 36% of New York SMBs are less than five years old.
- 72% of micro-enterprises in the state make less than $1,000,000 annually.
- Credit facilities regard 13% of New York’s SMBs as high credit risk.
- 60% of small firms have fewer than 5 employees.
- Average monthly earnings for small businesses are higher in Manhattan ($7,214), followed by Nassau County ($4,518) and Suffolk County ($4,224) in Long Island.
- Minority and women-owned businesses that have difficulty accessing regular markets can be assisted by the Small Business Revolving Loan Fund.
- In 2018, small firms generated 58.3% of New York’s $69.5 billion worth of total exports.
- New York state law requires that every new New York LLC designates a New York registered agent that will be available during regular business hours at a physical address within New York.
- The accommodation and food services sector is the highest employing sector with 236,142 employees, 14.28% of total employment.
- The management of companies and enterprises sector has the highest average monthly revenue ($13,191), followed by the finance and insurance sector ($10,652).
- The major challenge of running a business in New York state is having to contend with high taxes and complex state regulations.
- New York state has a business income tax base of 6.5%.
- The effective maximum corporation franchise tax that is imposed on S corporations is $4,500.
- Small business owners are required to pay income tax to the state. Tax rates on income tax range from 4% to 8.82%.
- 37% of small business employees stay at their places of work for around eight years or more.
- The mining, quarrying, and oil and gas extraction sectors employs the least amount of people, with around 2,451 employees in total.
Sources
- US Small Business Administration
- New York Annual Report on Small Business
- Investopedia
- SBDC New York
- Office of the New York State Comptroller
- US Patent and Trademark Office