New York State report finds small businesses lag nationally in growth

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Small businesses play a vital role in New York’s economy, ranking third nationwide behind California and Florida in total share, according to a report released last week by State Comptroller Thomas P. DiNapoli.

The study also found that small businesses — those with fewer than 500 employees and not dominant on a national level, according to the U.S. Small Business Association —lagged in growth by nearly 5 percent of the national rate from 2001 to 2023.

“Small businesses stimulate economic activity in our cities and towns, spurring innovation across industries,” DiNapoli said. “State and local governments should continue to look for ways to support small businesses by easing their entry into markets and helping them thrive.”

Long Beach is home to dozens of small businesses. According to the study, health care has a 10.1 percent share of small businesses in the state. Heal and Grow Psychotherapy, run by Long Beach resident Amy Baron, fits into this category. The business, which has operated for 12 years, employs 17 psychotherapists and is expanding from a four-suite practice to nine suites, at 214 W. Park Ave.

Baron previously owned a freelance publishing business, Amy Baron Publishing, and attributes her expansion to her drive and experience. “Having a business practice to start off with really helped me use my new career to grow my business,” she said.

Heal and Grow relies on referrals to expand its clientele. In addition to client referrals, Baron establishes relationships with local pediatricians, social workers, psychologists and even the Long Beach Public Schools. “We try to network a lot, so people know we are here,” Baron said.

DiNapoli’s study used data from the National Federation of Independent Business, an advocacy organization for small businesses. In a survey of 285 small businesses, the group found that state taxes on business income, unreasonable government regulations and electricity costs pose the greatest challenge for new and small business owners.

Baron says that despite the “bureaucratic hurdles” and ever-changing reimbursement rates from insurance companies, the state does not inhibit her business from being successful. She noted that Heal and Grow’s success is about staying connected to the community and being intentional about responding to need.

“My business has had substantial growth,” she said. “There are really no barriers. It's just navigating state, federal and insurance company requirements while meeting public demand.”