Building a More Inclusive, Vibrant, and Thriving Small Business Economy
Research Report by Next Street and Mass Economics
Executive Summary
The City of Boston Small Business Plan outlines a long-term strategy to strengthen Boston’s small business ecosystem, support neighborhood vibrancy, and expand equitable economic opportunity across the city. Developed by the City of Boston in partnership with Next Street and Mass Economics, the report examines the challenges and opportunities facing Boston’s 40,000+ small businesses and proposes targeted solutions to help businesses start, grow, and thrive.
The report emphasizes the critical role small businesses play in Boston’s economy — generating approximately $15 billion in annual revenue and supporting roughly 170,000 jobs. It also highlights persistent barriers facing minority-, women-, and immigrant-owned businesses, including limited access to capital, business networks, and growth-oriented support services.
The plan recommends strengthening coordination across Boston’s business support ecosystem, improving access to capital and technical assistance, and creating more equitable pathways for entrepreneurs across all neighborhoods.
Key Takeaways
Small businesses are central to Boston’s economy: Boston’s 40,000+ small businesses generate approximately $15 billion in annual revenue and support nearly 170,000 jobs citywide.
Equity gaps persist across business ownership: While Boston’s population is majority minority and majority women, minority- and women-owned businesses remain underrepresented and face lower growth rates than the citywide average.
Micro businesses dominate the ecosystem: Approximately 85% of Boston’s small businesses are micro businesses with fewer than 10 employees and less than $500,000 in revenue.
Business owners struggle to navigate support resources: Many entrepreneurs lack awareness of available business support organizations, capital sources, and growth resources throughout the city.
Access to customers and capital remains a major challenge: The report identified gaps in customer acquisition support, industry-specific resources, and small business lending — particularly for microloans and historically underserved entrepreneurs.
Strategic Priorities for Boston’s Small Business Ecosystem
Make the Small Business Economy Thrive: Support business growth, reduce preventable business failures, and strengthen access to tools, talent, and markets for entrepreneurs across Boston.
Enhance Neighborhood Vibrancy: Strengthen neighborhood commercial corridors through support for local retailers, restaurants, and service businesses that contribute to community identity and quality of life.
Drive Inclusion & Equity: Expand opportunities for minority-, women-, and immigrant-owned businesses through improved access to networks, resources, capital, and business support services.
Download the Full Report
Explore the full City of Boston Small Business Plan to learn more about Boston’s small business landscape, ecosystem challenges, and recommendations for inclusive economic growth.