It may seem absurd to think of establishing a business these days. After all, the pandemic has just recently placed over 40% of small businesses in major US cities in danger of closing. However, as the author Roy Bennett famously said “Every challenge, every adversity, contains within it the seeds of opportunity and growth”. And true enough, establishing a business these days is easier than ever before thanks to the never-ending initiatives the government is introducing. In this article, we will tackle the different steps New York has taken to encourage their people to become entrepreneurs and to support those that already are.
Encourage transparency among business owners
One of the most important qualities any business must have is transparency. When businesses are transparent they are capable of fostering trust and reliability. The state of New York is well aware of this, which is why they often reward transparency. A business that wants to register as an LLC in New York will find that there is an extra step to the registration process which involves meeting the publication requirement. All new LLCs must publish a transparent notice about their formation once each week for six successive weeks in two separate newspapers. Having done so, however, the LLCs will then enjoy many benefits, including flexible management, avoidance of double taxation, and personal asset protection.
Development and operational support
Small businesses are the backbone of their local communities and it’s easy to see why. According to an article in Hearst Newspapers, small businesses often employ local workers, contribute to local governments through taxes, buy local products and channel their profits to local events, sports teams and charities, much more than big corporations. Given this reality, New York tries its hardest to support small businesses in whichever way they can. For instance, the state offers a wide range of business training, assistance programs and resources for entrepreneurs. They also provide internships in the fields of advanced technology, software development, life sciences and clean energy. Since universities are often the source of new knowledge, research and innovations, the state of New York also creates opportunities for businesses and universities to collaborate.
Aside from helping businesses evolve, the state government has invested in rehabilitation and transformation of business areas in various cities. A great example of such a project is the Downtown Revitalization Initiative (DRI) grant that is set to invest $10 million in infrastructure, business development, facade renovation and bike-share programs in New Rochelle.
Financial support through incentives
The state of New York provides all kinds of incentives to small businesses, from tax incentives and credits to financial incentives and options such as loan modifications. In particular, financial incentives are provided to those who establish their businesses in strategic areas, invest in their employees, partner up with universities and improve their business facilities. For instance, local entrepreneurs that subject their employees to the state-sponsored Employee Training Incentive Program can receive tax credits. In addition to incentives, the state also offers a variety of funds, personal loans and grants that could help the expansion of small businesses.
From encouraging transparency and providing developmental and operational support to offering financial incentives, all of these initiatives are done by the local government to ensure that small businesses continue to grow and flourish. When small businesses are booming they can stimulate economic growth through employment opportunities and bring about innovation and progress.