Chicago businesses fall to 10-year low, Mag Mile down by half
Illinois Policy Institute research shows only 29% of the city’s neighborhoods saw an increase in the number of active business licenses since 2015

CHICAGO (Aug. 20, 2025) – Chicago was home to 54,135 businesses with an active license in 2015, but a decade later only 44,840 businesses remain.

That equates to a drop of 17%, or nearly 9,300 fewer Chicago businesses, according to new research from the Illinois Policy Institute.

Since 2015, only about 29% of the city’s communities saw an increase in the number of active licenses required for businesses to operate. That’s just 28 of Chicago’s 98 neighborhoods. The average business required about 1.9 city licenses to operate during the past decade.

The hardest hit was the Magnificent Mile. It saw a 51% drop in active business licenses during the past decade, with the number falling from 1,600 to 784 – the largest percentage decrease in the city.

“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.

New City on Chicago’s Southwest Side reported the largest percentage increase in active business licenses since 2015. The count of neighborhood licenses climbed from 1,429 to 2,580.

As the number of active businesses in Chicago declined, the number of license approvals also fell. The city reported 104,720 license approvals in 2015 compared to just 87,029 last year. The number of newly issued licenses declined by one-quarter during this time, and the number of renewals fell by about 15%.

“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.”

To read more about Chicago’s business decline, visit illin.is/chibizloss.

For interviews or interviews, contact media@illinoispolicy.org or (312) 607-4977.