New York is a city, and state, unlike any other. It has its own personality, uniqueness and quirks that make it a really memorable place to be. The people are different, the communities that thrive in the area are stronger and more welcoming, not to mention that there is so much to do there, to suit any niche.
In terms of business, New York is great too, due to a wide array of benefits and factors that make it a really attractive location for not just big, established brands, but also medium and small business to have a crack at too. New York plays a huge role in the economy of the entire United States, with a 2019 study finding that the state is home to 2.1 million small businesses and 4 million small business employees, which makes up over 50% of the private workforce, demonstrating how valuable and thriving industry is there. New York boasts the third-largest economy in the entirety of the US, just behind California and Texas. However, these are much larger areas with higher populations. In fact, if New York were its own country, it’d be one of the premier economies in the world.
Depending on the industry you want to be in, New York could be the perfect location for opening a new business for the following reasons.
New York Is Swarming With Startups
It’s no secret that business owners thrive and perform better when they’re surrounded by other entrepreneurs, which makes New York a great place to be in because it’s a place loaded with start-up companies that new businesses can partner up with, network with, or study to learn on how to make it. CNCB named New York City as the top city to open a small business in the entirety of America, and because of this moniker, many people flock to the city to make it big.
New York is a hotbed for some of the most profitable industries as well, such as entertainment and IT technology, and is also one of the leading finance centers in the entire world. In fact, greater Manhattan is the leading center for this, as well as banking, media and telecommunications with notable start-ups in the areas including BuzzFeed, Etsy and WebMD. These are now huge brands operating on a global level, and just goes to show the potential there is when opening a business in New York. When embarking on creating a start-up, it’s beneficial to ensure that you have all the appropriate knowledge needed beforehand to better equip you for success. An online MBA program is the best way to get this knowledge as it focuses on teaching you the basics to really excel in business, be it in your own or in an external company. To find out more, click here.
Tax Benefits
What makes New York a really effective place to start a business within the United States is that it’s an area that has a few interesting tax benefits, which can make it a lot easier to set a business up here. The reason these benefits are in place is because, historically New York hasn’t been the most business-friendly state out there. The reason for this is because rent can be pretty high in the area depending on the district your business is operating in, and running costs can be a lot higher than other areas.
Some of the benefits include ‘START-UP NY’, which allows businesses to operate entirely tax-free if they are located on, or near certain Universities in the state. This is an incentive designed to get young entrepreneurs in the area and to aid them on their careers through business. There’s also the New Markets Tax Credit Program that’s designed to give money back to businesses and real estate developers who create jobs and foster community development in some of the more low-income neighborhoods in the state.
It’s clear through these tax credits that the area is focused on developing and improving it’s communities and rewards businesses that have the same ethos, as they want to encourage new businesses to grow in size to help their citizens thrive and flourish.
Multiple Airports
There are 16 primary airports within New York, which can be useful in a variety of different ways. The most obvious way is that it helps keep businesses connected and makes it easier for small business owners to travel and see clients from across the country and even further afield.
Furthermore, these airport and transportation links are great for businesses that deal and sell physical goods such as manufactures, as these connections make it far easier to get in source materials as well as to ship their produce all across the globe. There’s also great train routes and other forms of transport that make New York a good place to set up warehouses, including the docks that can be used to transport goods by boat as well as receive materials from other countries, making production costs potentially cheaper.
Large Talent Pool
New York is densely populated, and what’s great for businesses is that a lot of that population is highly educated and young who are ready to step into work and become a vital asset for years to come. If you want to expand your business, you need to be in an area that has a large talent pool, and New York has that and some. 44% of New Yorkers are at least college educated and many of these natives stay in the state to find work, meaning that as a business owner you have a lot of people to choose from making it highly likely that you’ll find a great fit for any position you have available.
As well as the vibrant native market, New York is also a desirable location meaning that it can attract some of the best workers from overseas, so there’s even more potential to get a great addition to your staff. It also gets talent from some major US cities, such as Boston, Washington D.C and the state of New Jersey. Plus, New York is a great location for businesses looking for computer specialists as in 2017 they hired more software engineers than any other position, suggesting that tech isn’t just reserved for Silicon Valley.
Furthermore, the population of New York is a particularly healthy one when compared to the rest of American Society. Due to workers taking greater care of themselves, it means that people are less likely to call in sick and fall ill, which means a reduction of days off and thus helps businesses remain profitable. Plus being surrounded by healthier lifestyles and individuals can also impact the business owners on health and wellbeing, which is a nice bonus for setting up a business in New York.
Super Diverse
New York is one of the most culturally diverse locations not just in America but potentially the world and has a high population of Irish, Hispanics, African American and Asian minorities. Starting a business with different cultures can lead to increased creativity as these individuals can tackle problems and find solutions with different perspectives. According to research from Forbes, having a business that caters to a diverse market can also make it far more successful and beneficial. It’s believed that there are more than 700,000 minority-owned businesses in New York, making it a melting pot that celebrates and highlights many different cultures and proves that it’s a perfect place to start up if you’re considering doing something a little bit different and unorthodox. Having a diverse team can introduce new ways to tackle problems as well as introduce new methods to do things, which can result in drastically increased productivity.
Huge Tourism Industry
New York City is one of the most visited places in terms of foreign travel in the United States. It was approximated that 60 million tourists visited the area over the past year, and numbers are set to increase in the coming years. This boom in tourism is great for new companies as it provides an opportunity to trade with different types of customers and potentially grow your market abroad. Or, you can cater to this tourism industry and provide a business that takes advantage of these travelers, such as tours, events and other entertainment services.
Heavy Pedestrian Traffic
Locals within New York will tell you that it’s almost impossible to drive within the city, due to how congested the area is with people. Although this is a nightmare for road users, it creates a great opportunity for business owners as it means that due to more people walking about, there’s more chance to attract customers to your business.
Handing out flyers and offering samples on the street is a great tactic for New York businesses as it entices these passersby and increases awareness of your brand. Furthermore, New York is a great area for street vendors and food trucks, due to how New Yorkers are constantly on the move and on their feet. Providing affordable food that can be eaten on the go is a good business venture here.
