As the world’s undisputed financial and commercial hub, New York is considered a prestigious location for businesses in all industry areas. Companies large and small choose to be base their businesses in this thriving US city, which serves as a springboard for further expansion. This article takes a look at some key figures that demonstrate how New York is a top choice for business and startups.

Economic overview

New York’s prosperous economy is characterised by its focus on diversity and innovation. This global business city has a healthy balance between public and private sector jobs and between small, medium, and large-sized companies. In 2015, the state’s GDP was estimated at $1.3 billion.

According to the Economist, New York ranks first in terms of its Global Competitiveness Index, and commercial think-tank Z/Yen lists the city as the number one global financial centre. A United Nations report shows that New York is second in the global prosperity index ratings, whereas the NYCEDC reports that the city’s innovation index is marked by a constant upward trend in six key areas: finance, R&D, human capital, intellectual property, entrepreneurship, and high-tech gross product. Federal Reserve data shows that job growth is slightly below the national average, although still well within an acceptable range at 1.8 per cent. As of March 2015, the local unemployment rate was 5.7 per cent.

Major industries

According to the latest data set released by the US Bureau of Labor Statistics, the most important industry sectors across the state of New York are education and health services, finance, trade, transportation and utilities, professional and business services, the public sector, leisure and hospitality.

The technology sector has experienced solid growth for over a decade, and many technology startups have become key economic players and local and international level. This is the case of Tumblr, Etsy, Kickstarter, Makerbot, and Foursquare. During the first half of 2014 alone, New York-based tech startups raised more than $2.3 billion in funding. All in all, it is estimated that more than 300,000 people work in the tech sector state-wide. Bioscience is another high-value industry and an important contributor to the local economy. This sector attracts more than $390 million a year in funding and is the largest bioscience cluster in the US, with over 150 successful companies. Lastly, the media sector is well represented in New York, which is home to over 1,500 media outlets that employ more than 300,000 people.

Business finance and support

Business owners and entrepreneurs who are contemplating setting up a firm in New York can benefit from a wealth of incentives, government schemes, business loans and support services that promote business growth. Some of the most beneficial schemes include the following:

- The Bridge to Success Program, which offers short-term loans of up to $200,000 to female entrepreneurs looking to establish a small business anywhere in the NY state.

- The Innovate New York Fund, which provides seed equity funds to small-sized companies involved in the technology sector (including biotech firms).

- The Small Business Revolving Loan Fund, which targets companies who have problems getting credit from traditional sources. Loans and micro-loans are available to cover up to 50% of the total capital required.

- The Metropolitan Economic Revitalization Fund, aimed at large companies operating in economically underdeveloped parts of the city and the state. Eligible companies must demonstrate their ability to create and maintain jobs in these areas, and the funds can be used to renovate or build business premises or to acquire equipment.

- The Job Development Authority Direct Loan Program, which offers funding for companies involved in manufacturing, warehousing, and distribution.

Further information can be obtained from http://www.nyfirst.ny.gov and from the Greater New York Chamber of Commerce.

Sources:

(1) http://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP

(2) http://www.citylab.com/work/2015/03/sorry-london-new-york-is-the-worlds-most-economically-powerful-city/386315/

(3) http://www.nycedc.com/economic-data/innovation-index

(4) http://www.newyorkfed.org/research/regional_economy/charts/xet_1.pdf

(5) http://www.bls.gov/eag/eag.ny.htm

(6)http://mycrains.crainsnewyork.com/stats-and-the-city/2014/technology/silicon-valley-is-king

(7)http://www.nycedc.com/sites/default/files/filemanager/Industries/Bioscience/NYCEDC_BioSci_IndustrySnapshot2010.pdf

(8)http://www.nycedc.com/sites/default/files/filemanager/Industries/Media_EmergTech/MediaTech_Snapshot_2010.pdf

(9)http://www.esd.ny.gov/BusinessPrograms/Data/BridgetoSuccess/Bridge_to_Sucess_program_description.pdf

(10) http://www.esd.ny.gov/InnovateNY.html

(11) http://esd.ny.gov/BusinessPrograms/SBRLF.html

(12) http://www.esd.ny.gov/BusinessPrograms/MERF.html

(13) http://www.esd.ny.gov/BusinessPrograms/JDADirectLoanProgram.html