Small business owners are state's backbone but obstacles to growth remain: DiNapoli

CITYWIDE — SMALL BUSINESS OWNERS ARE THE BACKBONE OF NEW YORK, according to a new report from state Comptroller Thomas DiNapoli.

The report details how vital small businesses are to New York's economy, generating nearly $1 trillion in sales and revenues, with more than 3.7 million employees at over 422,000 establishments in 2023, the most recent year for which data is available.

DiNapoli's report found that data from the U.S. Census Bureau indicate 422,137 small businesses (with fewer than 500 employees) were operating across New York in 2023, comprising 98.9% of all businesses in the state. Over 80% of all New York businesses had fewer than ten workers. Small businesses employed 3.7 million people, close to 45% of the state's jobs, earning an average of $60,579 in annual pay in 2023. The industries most represented were health care and leisure activities.

Reflecting diversity, 23% are majority-owned by women and 26% by minority business owners.

However, the report also found that small business growth in New York has lagged the nation in some key metrics, including small business creation and employment. Among the obstacles: the cost of providing health insurance, business taxes, regulations, and protracted wait periods for licenses and permits from multiple agencies.

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