The National Federation of Independent Business (NFIB) Research Center released a new report on Mar. 6 highlighting the economic challenges and conditions faced by small businesses in New York compared to national trends.
The findings are important as they provide state-specific insights into the health and outlook of New York's Main Street businesses, which often differ from national averages. The data helps policymakers and stakeholders understand the unique environment for small business owners in the state.
According to the report, New York's Small Business Optimism Index for summer 2025 was 95.6, which is 2.3 points lower than the national average. This decline was attributed mainly to negative sales expectations, employment plans, and economic outlook among local business owners. Despite this, more New York small business owners rated their business health as excellent or good compared to their counterparts nationwide.
Holly Wade, Executive Director of NFIB’s Research Center, said, “The Small Business Economic Trends survey has provided essential information about the small business economy for decades. While this data is a useful tool for evaluating the economy on a national scale, no state can be defined by national numbers alone. This state-specific report allows us to better understand business conditions and the unique challenges and strengths owners’ face in New York.”
Ashley Ranslow, NFIB’s State Director for New York, said, “This data highlights the complex nature of New York’s diverse Main Street economy and underscores the unique challenges our members face. Small businesses in New York are resilient and adaptable, but rising costs and an unforgiving regulatory environment continue to stifle their optimism. It is imperative that the state addresses these obstacles and provides common-sense solutions that make the Empire State a better place to own and operate a business.”
Labor quality was identified as the most significant problem by New York small business owners during summer 2025—a trend consistent with national results—while labor costs ranked higher as a concern locally than it did nationally. The percentage of firms citing inflation as their top issue dropped significantly from 18% in 2024 to just 8% in summer 2025; however, uncertainty remains high among respondents regarding future plans.
The NFIB has collected Small Business Economic Trends survey data since 1973 through quarterly surveys and monthly since 1986. The current report pools responses from multiple surveys conducted between April and September 2025.
