Chicago Business Licenses Decline by Half on Mag Mile
Chicago has experienced a steep decline in active business licenses over the past decade, according to new data. Since 2015, only 29% of the city’s neighborhoods—28 out of 98—saw growth in active licenses, while on average, businesses required about 1.9 city licenses to operate during this period. The Magnificent Mile recorded the steepest losses, with active business licenses dropping by 51%, falling from 1,600 to 784. Patrick Andriesen, a writer for the Illinois Policy Institute, explained that the decline was “directly tied to the loss of businesses, not because of any pro-business reforms that would simplify the licensing process.”
While many areas struggled, New City on Chicago’s Southwest Side bucked the trend, reporting the highest percentage increase in active business licenses since 2015, with numbers rising from 1,429 to 2,580. Citywide, the downturn was reflected in license approvals: in 2015, businesses were granted 104,720 licenses, but by last year that figure had dropped to 87,029. Newly issued licenses declined by 25%, while renewals fell by about 15% over the same period.
Experts warn that the decline underscores serious challenges for the city’s business environment. “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 – it’s 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 the report can be found at illin.is/chibizloss.
