New York Small Business Statistics: 2025 Data for Entrepreneurs

2.4 million Small Businesses Power New York's Economy

If you're wondering how many small businesses are in New York, the numbers are staggering. The state is the third largest economy in the US, behind Texas and California in terms of gross state product. With a GDP of $2.32 trillion nominal ($1.83 trillion real, inflation-adjusted) in 2024, 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.

• There are 2.4 million small businesses (SMBs) in New York, making up 99.8% of all businesses in the state.
• 98% of New York businesses have fewer than 100 employees.
• 60% of small firms have fewer than 5 employees.
• According to Census Bureau Business Dynamics Statistics, approximately 36% of New York small businesses are less than five years old.
• New York's 2.4 million small businesses represent approximately 6.9% of the 34.8 million small businesses in the United States.

NYC Small Business Data: 183,000 Firms Across Five Boroughs

So how many businesses are in New York City exactly? NYC's five boroughs represent a concentrated hub of entrepreneurial activity, with distinct patterns across each area.

Brooklyn Leads, Manhattan Follows: Borough Distribution

The number of small businesses in New York City varies significantly by borough, with outer boroughs increasingly driving growth.

• There are approximately 183,000 small businesses in New York City as of 2023, employing approximately 995,000 workers across the five boroughs.
• Brooklyn has the highest concentration of small businesses among NYC boroughs with approximately 46,300 registered firms.
• Manhattan follows with approximately 37,500 small businesses.
• Queens ranks third with approximately 34,400 small businesses.

25,500 New Registrations: NYC Business Formation in 2024

New business formation statistics show a strong rebound since the pandemic, with entrepreneurs increasingly choosing NYC as their launchpad.

• The number of businesses in NYC grew by approximately 3% between 2020 and 2023, recovering from pandemic-related closures.
• New business formation in NYC reached approximately 25,500 new registrations in the past year (2024).
• 6,530 businesses were started in Q4 2024 alone.

3.9 million Jobs: Small Business Employment in New York

Small companies in New York are major job creators, employing nearly half of the state's private workforce.

• Small businesses employ 3.9 million people, which is 46.6% of all state employees.
• Small business employment in New York (46.3%) is above the national average of 45.9%.
• Average monthly earnings for small businesses are highest in Manhattan ($7,214), followed by Nassau County ($4,598) and Suffolk County ($4,224) in Long Island. According to 2023 data.

Top Industries for New York Small Businesses

Small business industry statistics reveal which sectors drive New York's economy and where job opportunities concentrate.

Hospitality to Professional Services: NY's Biggest Employers

From hospitality to professional services, these industries employ the most workers in NY small businesses.

• The accommodation and food services sector employs 537,380 people across New York small businesses (2022), making it the highest-employing sector.
• The professional services sector employs approximately 344,414 people across New York small businesses (2022).
• Retail trade comprises approximately 174,805 small businesses in New York, employing approximately 354,625 workers statewide (2022).
• Construction small businesses in New York employ approximately 323,986 workers.

Wall Street Effect: Revenue by NY Industry

Average small business revenue in New York varies dramatically by industry, with finance dominating despite representing a small share of total businesses.

• The finance and insurance sector, with an average annual wage of $362,000 per employee (2024), significantly outperforms other sectors in terms of revenue generation.
• While representing less than 9% of private sector jobs, the finance sector accounts for 27.6% of the city's total wages and 24% of New York City's Gross City Product.
• Wall Street bonuses reached a record $47.5 billion in 2024, with profits increasing by 90%, according to the New York State Comptroller.
• The healthcare and social assistance sector represents approximately 8.5% of New York small businesses.
• 72% of micro-enterprises in the state make less than $1,000,000 annually.
• The mining, quarrying, and oil and gas extraction sectors employ the least amount of people, with around 2,795 employees in total.

52% Survive Five Years: NY Small Business Success Rates

Thinking about starting a small business in New York? Understanding survival rates helps set realistic expectations for your venture.

• The small business survival rate in New York is approximately 52% after five years, compared to the national average of approximately 51.6%.
• Approximately 21-24% of New York small businesses fail within their first year of operation.
• Small business growth rate in New York State averaged approximately 1-3% annually between 2020 and 2024, showing modest recovery post-pandemic.

Who Owns New York's Small Businesses?

Small business owner statistics in New York reflect one of the most diverse entrepreneurial populations in the country.

893,000+ Minority-Owned Firms Statewide

New York leads nationally in diversity of business ownership, with strong representation across demographic groups.

• Approximately 28.4% of New York small businesses are minority-owned, representing approximately 893,131 firms statewide (Hispanic or Racial Minority ownership, 2022)
• Women-owned businesses in New York number approximately 832,967 businesses, employing approximately 92,967 workers.
• Minority and women-owned businesses that have difficulty accessing regular markets can be assisted by the Small Business Revolving Loan Fund.

47% Immigrant Founders Shape NY's Business Landscape

Immigration has long fueled New York's entrepreneurial ecosystem, contributing significantly to small business formation.

• Approximately 47% of New York small business owners are immigrants or first-generation Americans.
• Veteran-owned small businesses represent approximately 2.6% of New York's business landscape (51,167 firms, 2022).

$5.2 Billion in SBA Loans: Funding for NY Small Businesses

Access to capital remains critical for NY small business growth, though approval rates and loan amounts vary by region and credit profile.

• The average small business loan amount is approximately $83,348 nationally, with an approval rate of 51.3% (2024 national data).
• SBA loans to New York small businesses totaled approximately $5.2 billion for loans under $1 million in 2022.
• The average startup cost for a small business in New York City is approximately $40,000-$100,000, compared to $40,000 nationally statewide. Depending on industry.

Manhattan Rent at $71/sq ft: NYC Commercial Real Estate Costs

Real estate costs are a major factor for businesses in New York City, with significant variation between boroughs and neighborhoods.

• The average commercial rent for small businesses in Manhattan is approximately $71 per square foot annually (ranging $50-160/sq ft/month depending on class).
• Small business vacancy rates in NYC reached approximately 11.1% for storefronts in 2024 (Q3 2024).
• Manhattan storefront vacancy stands at 14.2%, Brooklyn at 11.9%, Queens at 8.7%, and Bronx at 8.2%.

$80 Billion in Exports: NY Small Business Global Trade

Small businesses in New York punch above their weight in global trade and patent production.

• In 2023, small and medium-sized firms generated 53.4% of New York's $80.3 billion worth of total exports.
• Small innovative firms produce 15 times as many patents per employee as large innovative firms.

NY Business Taxes: From 6.5% Corporate to 10.9% Income

Starting a small business in NY means navigating one of the most complex tax environments in the country. Here's what entrepreneurs should expect.

• 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 rate of 6.5% for corporations with taxable income under $5 million, and 7.25% for corporations with taxable income of $5 million or more (as amended effective January 1, 2021).
• The effective maximum corporation franchise tax 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 10.9% (as of 2024 tax year).
• New York State automatically designates the New York Department of State as the agent for service of process for all LLCs. While a New York LLC may optionally designate an additional New York Registered Agent with a physical address within New York available during regular business hours, this is not mandatory.

Sources

• U.S. Small Business Administration (SBA) – 2025 New York State Profile – Official federal data on small business counts, employment, exports, and business dynamics
• U.S. Census Bureau – Statistics of U.S. Businesses (SUSB) – Official business data by sector, size, and owner demographics
• U.S. Bureau of Labor Statistics (BLS) – Regional Economic Data – Monthly employment, wages, and industry data for New York
• New York State Department of Labor – Current Employment Statistics – Official state employment data covering 15,400+ New York businesses
• U.S. Bureau of Labor Statistics – Industry Profiles (NAICS) – Detailed sector-specific employment and wage data
• New York City Economic Development Corporation (NYCEDC) – State of the NYC Economy 2024 – Comprehensive NYC economic data including sectoral revenues and employment trends