New York's New Business Boomnycfuture.org/pdf/New-Yorks-New-Business-Boom.pdf · New York’s New BusiNess Boom Much attention has been paid to the dramatic growth in tech startups

nycfuture.org March 2013

New York’s New BusiNess BoomNearly twice as many new businesses were started in the five boroughs in 2011 than

in 1991, and the lion’s share were started outside of Manhattan

This brief was researched and written by Adam Forman, Matthew Claro and Jonathan Bowles. Design by Ahmad Dowla. General operating support for City Futures has been pro-vided by the Bernard F. and Alva B. Gimbel Foundation and Fund for the City of New York.

The Center for an Urban Future is a NYC-based poli-cy institute dedicated to highlighting the critical oppor-tunities and challenges facing New York and other cit-ies, and providing fresh ideas and workable solutions to policymakers. The Center’s primary focus is on growing and diversifying the local economy, expand-ing economic opportunity and targeting problems fac-ing low-income and working-class neighborhoods. The Center does this through publishing fact-based research reports that are accessible to a wide audience and holding high-profile policy forums. For more informa-tion or to sign up for our monthly e-mail bulletin, visit www.nycfuture.org.

Executive Director: Jonathan BowlesResearch Director: David GilesOperations Manager: Ahmad Dowla Research Associate: Kahliah LaneyResearch/Communications Associate: Adam FormanResearch Associate: Christian González-RiveraSenior Fellow: Tom Hilliard

City Futures Board of Directors: Gifford Miller (Chair), Margaret Anadu, Gerrard Bushell, Michael Connor, Rus-sell Dubner, Gretchen Dykstra, Blake Foote, Lisa Gomez, Jalak Jobanputra, David Lebenstein, Eric S. Lee, Monisha Nariani, Andrew Reicher, John Siegal, Stephen Sigmund, Thomas Vecchione, Mark Winston Griffith and Robert Zimmerman.

Cover: il_maca@N00/flickr

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New York’s New BusiNess Boom Much attention has been paid to the dramatic growth in tech startups in New York City over the past five years. But the amazing rise of Silicon Alley represents just one part of an incredible 20-year explosion in new entrepreneurial ventures in the five boroughs. In fact, nearly twice as many new businesses were incorporated in the city in 2011 than in 1991—and, interestingly, the fastest growth in startups over the past two decades has occurred outside of Manhattan.

In 2011, an astounding 65,658 businesses filed incorporation papers in New York City, an 86 percent jump from 1991, when just 35,218 businesses opened their doors. Of all the boroughs, Manhattan boasts the largest number of startups incorporated in 2011 (22,756) and the most startups per capita (143 startups per 10,000 residents). However, the Bronx experienced the fast-est growth over the past two decades (a 305 percent increase) while Brooklyn was the only bor-ough to see a spike in new business incorporations in the post-recession period of 2007 to 2011.

The following are some key findings from our analysis, which is based on a review of data from the New York State Department of State showing the number of new business incorpora-tions every year between 1991 and 2011:

• In 1991, 35,218 new businesses filed incorporation papers in New York City. By 2011, the number of new business incorporations in the city had increased to 65,658, an 86 percent increase.

• Of all the boroughs, Manhattan has boasted the most newly incorporated businesses every year from 1991 to 2011. In 2011, 22,756 companies were launched in Manhattan. This was followed by Brooklyn (with 19,351 new incorporations), Queens (16,152), the Bronx (4,690), and Staten Island (2,709).

• Of all the boroughs, the Bronx had the fastest growth in new business incorporations be-tween 1991 and 2011, with a 305 percent jump—going from 1,159 newly formed businesses in 1991 to 4,690 in 2011.

• Brooklyn had the second fastest growth in startups during this period, increasing 161 percent (from 7,419 new businesses in 1991 to 19,351 in 2011). This was followed by Queens, with a 128 percent increase (from 7,088 to 16,152), and Staten Island, which had a 93 percent gain (from 1,401 to 2,709). Manhattan had by far the slowest growth in startups during this period, only increasing 25 percent—from 18,151 new businesses in 1991 to 22,756 in 2011.

• In 1991, Manhattan accounted for 52 percent of the city’s newly incorporated startups. In 2011, that share dropped to 35 percent. Today, Brooklyn accounts for 30 percent, Queens for 25 percent, Bronx for 7 percent, and Staten Island for 4 percent.

• The number of new business formations in the city declined by 9 percent from 2007 to 2009, going from 66,274 newly incorporated companies in 2007 to 60,502 in 2009. However, new business formation increased by 9 percent from 2009 to 2011.

• Brooklyn is the only borough to register an increase in the number of startups between 2007 and 2011. It experienced a 5 percent gain in newly incorporated companies during this pe-riod, compared to declines in Staten Island (-9 percent), the Bronx (-6 percent), Queens (-3 percent), Manhattan (-2 percent) and citywide (-1 percent).

• Manhattan has the most start-ups per capita. For every 10,000 working age adults (18-65), there were 201 start-ups in 2011. The corresponding figures were 119 in Brooklyn, 109 in Queens, 90 in Staten Island, and 54 in the Bronx.

• In 1991, Brooklyn trailed Manhattan, Queens and Staten Island in startups per capita. Today, it outpaces all but Manhattan. The number of Brooklyn startups was a mere 40.9 percent of Manhattan’s total in 1991. By 2011, that share rose to 85 percent.

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93%

305%

161%

128%

25%

Staten Island

Bronx

Brooklyn

Queens

Manhattan

Percentage Growth in Business Incorporations from 1991 to 2011

Source: Center for an Urban Future analysis of data from New York State Department of State

1,159

2,526 2,562 2,660

3,042 3,075 3,093 3,056

3,335 3,477 3,552

4,037 4,228

4,401

4,735 4,868 4,992

4,675

4,363

4,759 4,690

New Business Incorporations by Year, 1991 – 2011 – Bronx


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7,419 8,062

8,740 9,178

9,790 10,483

11,004 11,532 12,271

13,123 13,195

15,046

16,014 16,710

17,635 18,334

18,399

17,813 17,039

18,682

19,351

New Business Incorporations by Year, 1991 – 2011 – Brooklyn

18,151

19,574 20,465

21,013 22,552

22,972 23,917

22,813

24,198 23,098

20,659

22,537 23,661

24,373 24,910

24,210 23,270

22,109 21,571

22,546 22,756

New Business Incorporations by Year, 1991 – 2011 – Manhattan



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7,088 7,843 8,166

8,667

9,675 10,428

10,909 11,123

11,707 12,505

12,835

14,259 14,649

15,729 15,850

16,672 16,634

15,750

14,773

15,693

16,152

New Business Incorporations by Year, 1991 – 2011 – Queens

1,401 1,390 1,535

1,624 1,740

1,852 1,954 1,906

2,119

2,371 2,258

2,745

2,926 3,061

3,320

2,994 2,979 2,895

2,756 2,822 2,709

New Business Incorporations by Year, 1991 – 2011 – Staten Island



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35,218

39,39541,468

43,142

46,79948,810

50,87750,430

53,63054,574

52,499

58,62461,478

64,27466,450

67,07866,274

63,24260,502

64,50265,658

New Business Incorporations by Year, 1991 – 2011 – New York City


Source: Chart is based on business incorporations per 10,000 residents. Center for an Urban Future analysis of data from New York State Department of State

122.0

134.4143.5

32.2

53.5

77.3

36.3

57.6

72.4

37.0

50.957.8

9.6

26.733.9

48.1

65.6

80.3

1991 2001 2011

Business Incorporations Per Capita, By Borough

Manhattan Brooklyn Queens Staten Island Bronx City-wide

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4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 5% 5% 5% 5% 4% 4% 5% 5% 4% 4%

3%6% 6% 6% 7% 6% 6% 6% 6% 6% 7% 7% 7% 7% 7% 7% 8% 7% 7% 7% 7%

20%

20% 20% 20% 21% 21% 21% 22% 22%23%

24% 24% 24% 24% 24% 25% 25% 25% 24% 24% 25%

21%

20% 21% 21% 21%21% 22%

23% 23%

24%

25% 26% 26% 26% 27%27% 28% 28% 28% 29% 29%

52%50% 49% 49% 48% 47% 47%

45% 45%42%

39% 38% 38% 38% 37% 36% 35% 35% 36% 35% 35%

Business Formation, Contribution by Borough

Staten Island Bronx Queens Brooklyn Manhattan


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Business Incorporations by Borough, 1991 - 2011

Year Steten Island Bronx Brooklyn Queens Manhattan City

1991 1,401 1,159 7,419 7,088 18,151 35,218

1992 1,390 2,526 8,062 7,843 19,574 39,395

1993 1,535 2,562 8,740 8,166 20,465 41,468

1994 1,624 2,660 9,178 8,667 21,013 43,142

1995 1,740 3,042 9,790 9,675 22,552 46,799

1996 1,852 3,075 10,483 10,428 22,972 48,810

1997 1,954 3,093 11,004 10,909 23,917 50,877

1998 1,906 3,056 11,532 11,123 22,813 50,430

1999 2,119 3,335 12,271 11,707 24,198 53,630

2000 2,371 3,477 13,123 12,505 23,098 54,574

2001 2,258 3,552 13,195 12,835 20,659 52,499

2002 2,745 4,037 15,046 14,259 22,537 58,624

2003 2,926 4,228 16,014 14,649 23,661 61,478

2004 3,061 4,401 16,710 15,729 24,373 64,274

2005 3,320 4,735 17,635 15,850 24,910 66,450

2006 2,994 4,868 18,334 16,672 24,210 67,078

2007 2,979 4,992 18,399 16,634 23,270 66,274

2008 2,895 4,675 17,813 15,750 22,109 63,242

2009 2,756 4,363 17,039 14,773 21,571 60,502

2010 2,822 4,759 18,682 15,693 22,546 64,502

2011 2,709 4,690 19,351 16,152 22,756 65,658


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New York's New Business Boomnycfuture.org/pdf/New-Yorks-New-Business-Boom.pdf · New York’s New BusiNess Boom Much attention has been paid to the dramatic growth in tech startups