In an encouraging sign for the economy, New York State has become a hub of entrepreneurial activity, showcasing a significant uptick in new business applications, according to a recent report. This surge reflects a broader national trend of burgeoning small businesses, with 2023 marking a record year for new enterprises across the United States.
Miguel Guadarrama’s story is a testament to the resilience and ambition driving this trend. After facing delays due to the COVID-19 pandemic, Guadarrama realized his long-held dream by opening Café Miguel in East Williamsburg with his mother in June 2023. His journey from planning to launch in the face of adversity exemplifies the spirit of new entrepreneurs across the state.
“I had the vision for this café back in 2018, 2019,” Guadarrama shared. “The pandemic was a major setback, but once conditions improved, we were able to launch, and the response has been incredible.”
This entrepreneurial boom is underscored by data from the U.S. Chamber of Commerce, which revealed that the nation saw an unprecedented 5.5 million new business applications filed in 2023 alone. New York State contributed significantly to this figure, registering an 8.1% increase in applications, with Brooklyn leading the charge by submitting almost 52,000 applications.
Yaz Mansi, the community engagement manager for Grand Street Business Improvement District, highlighted the pent-up demand for new ventures that emerged during the pandemic. “Many businesses were biding their time, waiting for the right moment. That moment is now,” Mansi observed. He also noted the vibrant mix of long-established communities and newcomers in the district, creating a dynamic environment conducive to business growth.
The definition of “small business” has evolved, with many entrepreneurs starting their ventures as remote side gigs during the pandemic. These initiatives, often operated without a traditional storefront, are increasingly turning into full-time endeavors. Financial experts, like Carl Gould, chief growth advisor at 7 Stage Advisors, see this shift towards formal business registration, such as forming LLCs, as a vital boost for the economy.
“Many people discovered they didn’t want to give up their side projects. They realized these could evolve into sustainable businesses,” Gould explained, emphasizing the role of entrepreneurship in economic revitalization.
While New York enjoys this positive trend, it’s worth noting the regional variations within the broader national landscape. Connecticut outpaced New York slightly in terms of percentage increase in new business applications, whereas New Jersey experienced a minor decline, with a 1% drop in applications filed.
This burgeoning entrepreneurial wave in New York State, particularly post-pandemic, signals a vibrant future for the economy. It highlights not only the resilience of individuals like Guadarrama but also the potential for growth and innovation in the face of challenges. As more individuals transition their passions and side gigs into registered businesses, the fabric of the local economy becomes increasingly diverse and robust, promising a brighter economic outlook for the Empire State.
