Brad Weisenstein, Managing Editor | Illinois Policy Institute
Brad Weisenstein, Managing Editor | Illinois Policy Institute
Chicago has seen a significant decline in the number of active business licenses over the past decade, according to new data. Since 2015, only about 29% of the city’s communities experienced an increase in active business licenses required for operation. This equates to just 28 out of Chicago’s 98 neighborhoods. On average, businesses needed approximately 1.9 city licenses to operate during this period.
The Magnificent Mile was particularly affected, experiencing a 51% decrease in active business licenses from 1,600 to 784—the largest percentage drop among all neighborhoods.
“The reduction in licenses is directly tied to the loss of businesses, not because of any pro-business reforms that would simplify the licensing process,” said Patrick Andriesen, writer for the Illinois Policy Institute.
Conversely, New City on Chicago’s Southwest Side reported the highest percentage increase in active business licenses since 2015. The number rose from 1,429 to 2,580.
Overall, as active businesses declined across Chicago, license approvals also dropped. In 2015 there were 104,720 license approvals compared with just 87,029 last year. Newly issued licenses decreased by one-quarter and renewals fell by about 15% over this time frame.
“Chicago’s sharp drop in businesses during the past decade is a warning sign for the entire state – the city is closed for business,” said Bryce Hill, director of fiscal and economic analysis at the nonpartisan Illinois Policy Institute. “When storefronts on the Mag Mile disappear, it’s not just tourists who notice – its workers who lose paychecks and families who lose stability. The city’s crushing taxes and burdensome regulations aren’t just discouraging new businesses from opening, they’re forcing long-standing employers to leave. City leaders must address this hostile business climate by cutting taxes and adopting pro-growth policies that ensure Chicago is a vibrant place to start a business and family.”
Further details on Chicago's declining business environment can be found at illin.is/chibizloss.
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