20 Fascinating New York Small Business Statistics

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 $2.32 trillion (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.

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 innovative firms produce 15 times as many patents per employee as large innovative 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 ($4,598) 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 2023, small and medium-sized firms generated 53.4% of New York's $80.3 billion worth of total exports.

• 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.

• The accommodation and food services sector is the highest employing sector with 364,000 employees as of November 2024, representing approximately 7.5% of New York's employment.

• 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 sector accounts for 27.6% of the city's total wages and 24% of New York City's Gross City Product. Wall Street profits, a key indicator of the finance sector's revenue, are projected at $41.7 billion in 2024.

• 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 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 10.9% (as of 2024 tax year).

• 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

• 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