March 14, 2016
By Stephanie West
Albany, NY – Small businesses are a vital part of New York state’s economy, supporting nearly 3.9 million jobs and generating more than $950 billion in annual revenues. Over the past decade, New York’s small businesses fared better than the nation’s as a whole. Small business employment in the state rose by a net 1.6 percent, or 59,000 jobs, in the 10-year period through 2013.
“Small businesses help drive New York’s economy,” State Comptroller Thomas P. DiNapoli said. “From neighborhood coffee shops to start-up tech firms, small businesses account for more than half of all private-sector employment and provide almost $190 billion in annual payrolls. These businesses are critical to New York’s economy and integral to the fabric of life in the Empire State.”
New York’s small businesses generated $954 billion in receipts in 2012, accounting for approximately 43 percent of all business receipts in New York. Four sectors dominate New York’s small-business economy, each providing more than half a million jobs: wholesale and retail trade; professional services; leisure activities; and health services. The small businesses sector generating the highest overall payroll in New York is financial activities. Just over 44,000 firms in this sector, with nearly 279,000 jobs, provided total payroll of almost $31 billion in 2013
The U.S. Small Business Administration (SBA) defines a small business as one with fewer than 500 employees. Such businesses account for more than 99 percent of all businesses both nationally and in New York. Almost two-thirds of small businesses have fewer than five employees. More than 80 percent have fewer than ten employees.