Next Street flags Chicagoland small business growth gaps

A new Next Street report says Chicagoland’s small business ecosystem is stronger than it was in 2018, but too few firms are turning support into durable growth. The reassessment points to capital gaps, weak growth-stage support, and the need for better navigation across the region’s business network.

Why it matters: - Chicagoland has about 687,000 small businesses that support more than 1 million jobs. - The region has made progress since 2018, but employer business growth has stayed nearly flat while non-employer activity has driven much of the increase. - Half of the region’s small businesses generate less than $25,000 in annual revenue, showing how many businesses are still operating at very small scale.

What happened: - Next Street released What’s Next for Chicagoland Small Businesses: A Regional Roadmap for Inclusive Growth on Sept. 29, 2026. - The report revisits Chicagoland’s small business ecosystem for the first time since Next Street’s initial assessment in 2018. - The study was commissioned by funders of the Fund for Equitable Business Growth, including Builders Vision, The Chicago Community Trust, the Coleman Foundation, Crown Family Philanthropies, JPMorganChase, the John D. and Catherine T. MacArthur Foundation, and the Polk Bros. Foundation. - A steering committee that included the City of Chicago, Cook County and Comcast Corporation supported the report.

The details: - Chicagoland in the report includes the city of Chicago and suburban Cook County. - Since 2018, public and philanthropic investment in small businesses has grown, business support networks have become more connected, new capital access approaches have emerged and entrepreneurial activity has increased. - Nearly half of surveyed business owners said they mainly find support through trusted personal relationships. - Only 20% said they primarily rely on formal business support organizations. - The report estimates Chicagoland small businesses sought about $43 billion in capital in 2024. - Institutional channels deployed $8.9 billion, leaving an estimated $34 billion gap. - The sharpest need is for financing between $50,000 and $250,000 for Main Street and venture-backable businesses. - That funding can support hiring, equipment purchases, expansion and working capital. - The report says financing needs should be tailored to the business stage and purpose. - Much of the region’s existing infrastructure has focused on startup and stabilization support. - Established businesses often need help with hiring, reaching larger customers, accessing growth capital and ownership transition. - 52% of the region’s employer business owners are 55 or older. - That demographic mix raises the risk of closures and creates an opening to preserve local businesses and wealth through successful transitions. - Earl Grandberry Jr., director of the Fund for Equitable Business Growth at The Chicago Community Trust, said the region needs a stronger, more connected support system that expands access to capital and business development resources. - The full report is available here.

Between the lines: - The report suggests the region’s ecosystem problem is no longer just access to resources. - The bigger challenge is converting that access into revenue growth, hiring and ownership continuity. - The findings also point to a mismatch between the support that exists and the needs of businesses that are past the startup stage. - The reliance on personal networks over formal organizations suggests many owners still struggle to navigate a fragmented system.

What’s next: - The report calls for a coordinated growth-stage support system for established businesses. - It also urges more right-sized, flexible capital, especially loans and investments from $50,000 to $250,000. - Another priority is stronger succession planning, buyer preparation, acquisition financing and transition support. - The report recommends better navigation tools and stronger ecosystem accountability so partners can track whether support is producing real outcomes. - The broader goal is to connect existing programs more effectively rather than create more standalone initiatives.

The bottom line: - Chicagoland has built a stronger small business support network, but the next step is turning that network into measurable growth for more businesses.