New York City lost nearly 5,000 businesses in spring 2025

New York City lost nearly 5,000 businesses last spring in the largest net decline in business activity since before the coronavirus pandemic, including some popular Asian-owned eateries, according to a report.

At least 3,500 new businesses were started in the second quarter of 2025, but that was offset by a loss of 8,400 businesses that closed, a December 2025 economic snapshot from the New York City Economic Development Corporation found. This created a net closure of 4,900 businesses, the weakest quarter of net business formation in five years.

NYCEDC told China Daily that its economic snapshot "offers a clear picture of the health of the city's economy", which is critical to carrying out its mission to build a vibrant, equitable and inclusive economy for all New Yorkers.

New York City anchors the largest metropolitan economy in the United States, with the New York metro area producing over $2.6 trillion in GDP in 2022, according to New York City Comptroller Mark Levine.

Small businesses represent roughly 95 percent of all businesses in the city and employ nearly 1 million people.

In the third quarter of 2025, the Big Apple saw a net loss of 1,050 businesses, with 4,660 new ones opening and an estimated 5,700 closing, NYCEDC found. There was no specific breakdown on how many of the closed businesses were Asian-owned.

Asian American and Pacific Islanders owned over 47,000 companies in the five boroughs of New York city in 2022, according to estimates by the non-profit Center for an Urban Future. They are also the fastest growing racial group in New York City.

Through the pandemic and into 2026, a number of high profile and beloved Asian-owned restaurants and stores in New York, especially Chinatown, closed, reflecting the citywide trend.

Just a few include: Tin Duc Food Market, which shut in January after nearly 45 years in Chinatown; dim sum hall Jing Fong closed its Upper West Side location in March 2026, but its Chinatown location remains open; Canal Street Market shut in 2025; and Nice One Bakery in Chinatown closed in June 2025 after 30 years in business.

"New York City's small businesses are fighting for survival, and the numbers don't lie," The NYC Five Chamber Alliance, representing the Chambers of Commerce of the Bronx, Brooklyn, Manhattan, Queens and Staten Island said in a statement.

Asian American and Pacific Islander firms generated $72 billion in annual revenue and employed over 327,000 people in 2023, making them an important economic bloc, The Asian American Foundation said.

For many small businesses, especially those that import goods from China to the US, the lingering effects of the pandemic and extra costs from tariffs was a huge strain, said an expert.

Gary C. Hufbauer, an expert on international trade and a non-resident senior fellow at the Peterson Institute of International Economics, told China Daily that through early 2026, "companies absorbed most of the tariffs" that have since been deemed unlawful and are subject to a refund following the Supreme Court's ruling earlier this year.

Several local initiatives have been launched to offer New York City businesses extra support.

In March, New York City Mayor Zohran Mamdani highlighted the revamped $80 million NYC Future Fund, which provides flexible loans with interest rates of just 7.5 percent for minority owned businesses.

Mamdani said in a statement: "Many entrepreneurs — especially immigrant and working-class New Yorkers — have been locked out of the affordable capital they need to grow. Our revamped NYC Future Fund will change that."

In May 2025, The Social Justice Fund, The Asian American Foundation, Renaissance Economic Development Corporation and the State of New York unveiled the NYC Elevating Business Loan Program.

The $5.5 million initiative pledges to help small businesses through affordable loans and free financial counseling.

New York Governor Kathy Hochul described New York's small businesses as "the backbone of our communities", while supporting the initiative.

Chinatown, located in lower Manhattan, has at least 4,000 Chinese-owned businesses, data from The Asian American Foundation showed.

Welcome to Chinatown, a non-profit, opened its Small Business Innovation Hub in October 2024 to offer support.

"Legacy planning is crucial for Chinatown's future," Victoria Lee, CEO of Welcome to Chinatown, told China Daily. "These businesses are more than just economic drivers. They represent generations of cultural heritage."

belindarobinson@chinadailyusa.com