What is a small business?

The Small Business Administration’s Office of Advocacy defines a small business for research purposes as “an independent business having fewer than 500 employees.” Additionally, SBA has established size standards that define whether a business entity is small and, thus, eligible for government programs and preferences reserved for “small business” concerns. Size standards have been established for types of economic activity, or industry, generally under the North American Industry Classification System (NAICS).

In New York State, the definition of a small business for the purposes of Chapter 15 Economic development law, S 131 (Article 4-B Division for Small Business), “a small business shall be deemed to be one which is resident in this state, independently owned and operated, not dominant in its field and employs one hundred or less persons.”  The State utilizes this definition to determine eligibility for the Small Business Environmental Ombudsman (SBEO) program, the annual New York State Small Business Awards, and other services or programs.

What is the survival rate for new firms? How many businesses open and close each year? How many new jobs do small firms create?

These and many more questions are answered by the SBA’s Office of Advocacy in this PDF document.

New York State Small Business Profile

This annual profile from the SBA’s Office of Advocacy shows the number of small, women-owned, and minority-owned businesses in New York State; business turnover (new firms, bankruptcies and terminations); employment; small business income; sources of financing; firms by industry and firm size; and non-farm establishment job gains and losses by firm size.

The Small Business Economy 2009

From the SBA: "Despite more recent numbers showing improvement in the U.S. economy, the economic picture for small firms at the end of 2008 offered few bright spots, according to the 2009 edition of The Small Business Economy released by Advocacy ."