📊 Summary of the Small Business Profiles for Major Metropolitan Areas of the Northeast 2025
The “Small Business Profiles for Major Metropolitan Areas of the Northeast 2025” report, published by the U.S. Small Business Administration’s Office of Advocacy, provides a comprehensive statistical overview of small businesses across the largest metropolitan areas in the Northeast United States. The report uses the latest available government data, primarily from the Census Bureau, to analyze the scale, employment impact, industry distribution, and recent trends among small businesses (defined as firms with fewer than 500 employees) in these urban economies.
Key Findings and Economic Insights
- Prevalence and Economic Role of Small Businesses
- ✅ Small businesses make up the overwhelming majority of firms in every major Northeast metro area, typically accounting for between 94% and 99.8% of all businesses.
- ✅ In the New York-Newark-Jersey City metro, there are 2.6 million small businesses, representing 99.8% of all businesses and employing 4.1 million people (50.2% of the workforce).
- ✅ In Boston-Cambridge-Newton, 552,091 small businesses comprise 99.5% of all businesses, employing 1.2 million people (44.4% of the workforce).
- ✅ Other major metros, such as Philadelphia-Camden-Wilmington and Providence-Warwick, also show small businesses employing between 44% and 52% of the total workforce.
- Employment Trends
- 📈 In most metro areas, small business employment has grown or remained stable over the past decade (2012–2022).
- 📈 For example, in Philadelphia-Camden-Wilmington, small business employment rose from 1.2 million to 1.3 million, and the number of small employers increased from 112,258 to 120,642.
- 📉 Some metros, like Buffalo-Cheektowaga and Albany-Schenectady-Troy, saw slight declines in small business employment, reflecting broader regional economic shifts.
- Industry Distribution
- 🏢 The most common industries for small businesses are Professional, Scientific, and Technical Services; Health Care and Social Assistance; and Miscellaneous Services.
- 🏥 In many metros, Health Care and Social Assistance is the largest employer among small businesses (e.g., Buffalo-Cheektowaga: 38,526 employees; Providence-Warwick: 58,452 employees).
- 🛠️ Professional, Scientific, and Technical Services often have the highest number of small business establishments, especially in knowledge-based economies like Boston and Worcester.
- Self-Employment and Income
- 💼 Self-employment rates have generally increased since 2018, with 10–14% of private workers in most metros identifying as self-employed in 2023.
- 💵 Median incomes for the self-employed have also risen. For example, in Providence-Warwick, the median income for incorporated self-employed individuals reached $74,855 in 2023, up 9.5% since 2018.
- 💵 The median income for all private workers in these metros has also grown, reflecting broader wage growth trends.
- Geographic and Demographic Notes
- 🌎 The report uses Metropolitan Statistical Area definitions from the Office of Management and Budget as of July 2023.
- 📊 Data is sourced from the Census Bureau’s Nonemployer Statistics and Statistics of U.S. Businesses, ensuring consistency and comparability across regions.
Economic Implications for the Northeast
- 🏙️ Small businesses are vital to the economic health and employment base of Northeast metropolitan areas, especially in service-oriented and knowledge-based sectors.
- 📈 The steady or growing share of employment in small businesses suggests resilience, but areas with declining small business employment may need targeted economic support or policy attention.
- 💡 Rising self-employment and incomes point to increased entrepreneurial activity and potential for innovation, but also highlight the need for policies that support new business formation and sustainability.
Summary
The 2025 Small Business Profiles for Major Metropolitan Areas of the Northeast show that small businesses are the backbone of urban economies in the region, providing nearly half of all private-sector jobs and dominating the business landscape. While most metros have seen growth in small business employment and self-employment, some areas face challenges that could impact future economic vitality. Policymakers and economic stakeholders should focus on supporting small business growth, especially in sectors and regions showing signs of stagnation or decline.
References:
Small Business Profiles for Major Metropolitan Areas of the Northeast 2025, U.S. Small Business Administration