Small Business Statistics
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.
Did you know:
- Small businesses make up 99 percent of all New York businesses.
- The website NerdWallet rates New York as the 5th most entrepreneurial in the country, based on an analysis of 1) the number, size, and increased number of SBA loans, 2) venture capital funding, and 3) the growth of small business population for each state.
- Small patenting firms produce 13 times more patents per employee than large patenting firms. In 2014, New York ranked third in the number of patents awarded in the US. (http://www.uspto.gov/web/offices/ac/ido/oeip/taf/cst_utl.htm)
- More than 2 million small businesses in New York – 7.2% of the national total – are located in every region, community and neighborhood of the state, making New York a great place to live and operate a small business. (https://www.sba.gov/advocacy/small-business-profiles-states-and-territories-2014)
- As of 2012 (most current available), small businesses employ 51.1% of New York’s non-farm, private-sector workplace. (http://www.census.gov/econ/susb/)
- New York has a diverse economy. Nearly one-fourth of its land is dedicated to agriculture. In 2014, NYS ranked 2nd in the U.S. in apples, maple syrup, cabbage, and snap beans; 3rd in pumpkins, cauliflower, squash, and milk; 4th in grapes and pears; and 5th in tart cherries. (http://www.ers.usda.gov/data-products/farm-income-and-wealth-statistics/cash-receipts-by-commodity-state-ranking.aspx)
- In 2012, 94.3% of all exporting firms in New York were small businesses, ranking 3rd in the nation. These firms were responsible for nearly 60% of the value of exports leaving the state, which was the 6th highest rate in the U.S. Canada is NYS’s best export customer, receiving 19.3% of the state’s exports. (www.trade.gov/mas/ian/statereports/tg_ian_001955.asp)
- As of 2012, there were 709,021 minority-owned businesses and 725,709 women-owned businesses in New York, many of them small businesses. New York has made it a priority to remove barriers in state contracting. (Source: 2012 Survey of Business Owners (conducted every five years by the U.S. Census), for New York State: http://factfinder.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t Enter “SB1200CSA01” in “topic or table name” search box)
- New York ranked 8th in the percentage of small businesses started in 2013 that survived into 2014 (80.7%). (https://www.sba.gov/advocacy/small-business-profiles-states-and-territories-2014)
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 is an annual report since 1982, which continues to serve as a reference source to business owners, policymakers, and researchers when they need information on small business' performance in the economy.