New York state sees 8.1% increase in new business applications, new report says
NEW YORK -- There is a positive sign for the economy and the state of New York.
A new report shows small businesses across the country are booming, with applications for new businesses hitting a record last year.
It's a delayed dream come true. After some roadblocks, Miguel Guadarrama opened up his East Williamsburg café with his mom in June of 2023.
"I was planning on opening something since 2018, 2019," Guadarrama said.
He said it was the COVID pandemic that truly prevented him from opening in 2020, but once the outbreak let up, his business, Café Miguel, took off.
"I was able to do what I envisioned," Guadarrama said.
He's an example of what the United States is reporting -- new small businesses surging, post-pandemic.
The U.S. Chamber of Commerce says in 2023, new business applications hit a record-breaking 5.5 million filed.
New York state saw an increase of 8.1%, with Brooklyn filing the most applications, almost 52,000.
"During the pandemic, there were a lot of businesses in the neighborhood, just waiting on the sidelines, waiting for a good opportunity," said Yaz Mansi, community engagement manager for Grand Street Business Improvement District.
Mansi says that opportunity is now, adding his district currently has some of the fewest empty shops, only 6.1% of the more than 150, and he credits the district's cohesive mix.
"These communities that have been so established for so long, alongside newer folks coming in that creates an interesting dynamic," Mansi said.
When you hear small business, you may think about a shop with an actual storefront, but experts say that isn't always the case.
A financial professional that spoke to CBS New York believes many of these new applications were people's remote side gigs during the pandemic, that are now turning into full-time jobs.
"They didn't want to have to give it up," said Carl Gould, chief growth advisor at 7 Stage Advisors. "They're thinking, I can make a real business out of this, and so they're registering it as an LLC."
Gould said that kind of entrepreneurship is exactly what the economy needs.
While the new report shows Connecticut saw a slightly better increase compared New York, New Jersey is one of the few states that saw a decrease, with 1% less applications filed.
