Now, the Empire State! It is the 3rd largest US economy, with only California and Texas being stronger. A $1.7 trillion GDP puts New York in line with Canada, which closes the list of the top 10 countries in the global GDP rating.
Though the state’s economic potential is driven by big ventures, smaller companies confidently dominate in the NY business arena. From cozy mom-and-pop stores to ambitious IT startups, private firms continue popping up in different spheres.
Given the level of competition, market trends, and general business conditions, initiating a venture in NY state might be quite a challenge. And our list of facts on the NY micro business sector will help you work out an optimal plan to start on the right foot.
Key New York Small Business Stats Following recent SBA data, Micro-enterprises count in NY is 2.3 million entities as of 2021 making up to 99.8% of the state's economic landscape; 66% of NY smaller privately owned companies survive a 5-year period; Over 4 million employees in the state are engaged in the private sector which makes up nearly 50% of the total workforce; Smaller companies add nearly 600.000 new jobs to the employment market on an annual basis; During the pandemic crisis, though, New York has shown a 15% decrease in private company establishments and job generation as compared to average yearly rates; 98% of NY smaller entities are private firms employing less than 100 workers; The workforce employed in companies with fewer than 100 persons is 53%; According to the NY State Department of Labor, the unemployment rate in the state was 8.5% in 2021 against a 6% national average; Trade is a part and parcel of the NY economy, with nearly 35.000 exporters from the private sector maintaining it; Meanwhile, smaller companies generate 58% of the state export earnings; Smaller businesses applying for external financing steadily make up 43% of the total number. Notably, this figure hasn’t changed since 2017, despite the COVID-19 struggles; Looking for added funds, 44% of entrepreneurs use bank loans, 22% source money from online creditors, and 6% choose credit unions; The annual revenue of 72% of smaller entrepreneurial entities in NY is below $1 million; With an average wage rate of $24 per hour, the highest monthly salaries across the private sector are in Manhattan (about $7.000), Nassau ($4.259), and Suffolk ($3.853) counties; By professional activity, company managers enjoy the highest profit of over $13.000 per month. They are followed by financial and insurance exports earning nearly $11.000 a month; A small enterprise sector with the highest employment rate is the accommodation and food services employing around 15% of the total small business workforce in NY; With 339.000 ventures, small companies dominate the sphere of professional, scientific, and technical services; U.S. Census report states that the mining, quarrying and gas, and extraction industries are the least popular among private employers, with only 850 companies working in this area. 10 Most Popular Small Business Industries in New York
Industry Company Count Professional, scientific, and technical services 339.914 Real estate, rental, and leasing 246.126 Transportation and warehousing 242.302 Other services (excluding public administration) 212.589 Healthcare and social services 203.965 Construction 183.746 Retail trade 176.537 Entertainment and recreation 155.964 Administrative, support, and waste management 149.256 Accommodation and food services 78.785 NY Small Business Demographics Female owners hold 40% of private companies registered in New York; 48.5% of the NY workforce are women; 3.5% of companies are owned by veterans. The latter make up 2.7% of NY employees; Hispanics own 265.000 smaller private firms controlling about 13% of this business sector; Racial minorities own nearly 540.000 entities which equates to a 26% share of all small businesses in NY; To maintain workforce diversity, racial minorities make up over 33% of NY workers. NY Small Business Formation Stats Though private companies show 66.372 closings against only 52.614 openings ( BLS survey), small businesses are still the backbone of the NY economy; An LLC filing fee in the state is $200; To maintain a corporation or LLC in New York, you’ll have to designate a NY Registered Agent that will receive official mail on behalf of your entity and keep an eye on your compliance requirements; To succeed in NY, you’ll have to maneuver between taxes and multiple state regulations; NY entities are exposed to annual franchise tax payments. Rates vary by the level of gross income and start at $25. The maximum rate is $4.500 for a gross income over $25 million; Tax rates on small business net income are also dependent on income level and vary from 4% to 8.82%. References NY Small Business Annual Report 2021 New York Small Business Profile 2021 How Many Small Are There in New York?