Increasing local employment can improve affordability in communities.
In a city known for its relentless pace and melting pot of cultures, the survival and growth of local businesses are increasingly vital. For generations, New Yorkers have flocked to the city driven by the promise of opportunity and abundant employment. Amid ongoing discussions regarding the challenges of affordability, it is crucial not to overlook the pivotal role small businesses play in sustaining local communities. Neighborhood restaurants, family-owned bodegas, startups, and local manufacturers are the backbone of employment, providing opportunities essential for families to thrive.
Mayor Mamdani’s administration has highlighted the need for the city to enhance its support for these small business entities, which face unique challenges distinct from those experienced by larger corporations. As with many New Yorkers, these businesses are grappling with significant obstacles that threaten their very existence. Issues such as supply chain disruptions, soaring costs, and bureaucratic hurdles are commonplace, leading to troubling statistics. In the first quarter of 2025, approximately 5,310 businesses closed their doors in New York City, while only 4,910 new establishments opened—marking the lowest rate of new business formation since at least 2018. Local entrepreneurs consistently express the need for government action to facilitate the growth and sustainability of their operations.
Importantly, this support does not equate to mere financial handouts, but rather to pragmatic reforms that simplify compliance and foster a business-friendly environment. Research has shown that businesses employing five or fewer workers account for 30% of job creation in New York City. When these small businesses flourish, entire neighborhoods benefit, reinforcing the community’s economic fabric.
To address the pressing challenges faced by these businesses, the Five Borough Jobs Campaign has proposed a comprehensive agenda aimed at providing clarity and resources. The initiative, which represents businesses of all sizes across the city, seeks to alleviate burdensome regulations and streamline processes. A key aspect of this agenda includes the mayor’s recommendation to reduce fines and fees, coupled with a proposed 90-day moratorium on certain penal measures to facilitate compliance. Such changes represent an acknowledgment of the excessive regulatory landscape confronting small business owners today.
Alongside regulatory reform, the campaign emphasizes the importance of adequately funding and staffing the Department of Small Business Services, which currently struggles with an 18% vacancy rate. This lack of resources undermines the department’s efficacy and its ability to support critical indicators of business success.
Moreover, it is paramount to avoid policies that inadvertently increase operating costs for small enterprises. For instance, recent Fair Workweek laws have imposed added wage burdens without proper consideration of the specific circumstances faced by small business owners. In the complex landscape of affordability, taking a regressive step under the guise of progress may ultimately jeopardize the livelihoods of many.
A thriving city is one where every resident feels secure and supported, with access to quality jobs, childcare solutions, and workforce training in underserved communities. The proposed establishment of a small business director within the mayor’s Department of Community Safety underscores a commitment to ensuring that businesses and public spaces remain safe and vibrant.
Central to these discussions is the fundamental belief that addressing affordability cannot be separated from the imperative of supporting job growth across all sectors. Sustainable, good-paying jobs must be a priority not only in larger companies but also within the local enterprises that fill every corner of the city. Such a holistic approach is vital for maintaining the economic vitality that has long characterized New York City.
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