News Summary
A new report by the Public Policy Institute of New York reveals major challenges faced by businesses in the state, citing regulations, taxation, and affordability as primary concerns. The report highlights the voices of over 500 business owners and suggests urgent reforms for improving the economic landscape. Governor Kathy Hochul expresses her commitment to addressing these issues while balancing health and safety. The findings indicate that a significant portion of business leaders feel unsupported by state regulators, prompting calls for action to enhance competitiveness and retain talent.
New York State is facing significant business challenges as identified in a new report by the Public Policy Institute of New York. The report highlights regulations, taxation, and affordability as the main concerns for business owners throughout the state. Co-authored by Ryan Silva, executive director of the New York State Economic Development Council, the report titled “Blueprint for New York – Creating a Roadmap for Change” utilizes both qualitative and quantitative data to explore the issues and propose solutions.
The report reveals that over 500 businesses from various industries participated in focus groups contributing vital insights about their operations and challenges. Among the key issues raised, business owners reported difficulties in obtaining permits and reimbursements, which create significant hurdles for conducting business smoothly. There is a universal sentiment among these participants that the challenges they face impact businesses across the entire state.
In response to the findings, New York Governor Kathy Hochul has expressed a willingness to support the business sector while encouraging stakeholders to collaborate in identifying areas that need improvement. Hochul has emphasized her commitment to balancing health and safety considerations with the necessity of eliminating outdated or redundant restrictions that may hinder business operations.
According to Ryan Silva, without substantial changes to address these issues, business growth in New York State is anticipated to continue declining. During a recent roundtable discussion with New York executives, a businessman compared the complexity of obtaining a construction permit for a large project to the simplicity of ordering a pizza, underscoring the frustrations many face with the government’s processes.
Statistics from the report indicate that only 3% of business leaders feel adequately supported by New York regulators and lawmakers, while just 2% believe that Albany lawmakers represent their interests. Furthermore, more than 70% of business leaders do not view the current economic conditions in New York as favorable.
The Business Council and New York State Economic Development Council have conducted over 20 meetings over the past 10 months to gather insights from business owners about their experiences with government regulations. The data collected shows that New York’s working-age population has fallen by 3.8% over the past decade, earning the state a ranking of 46th among states in growth within this demographic. Contributing factors to this outmigration include high taxes, a soaring cost of living, and rising energy costs.
The inability to attract and retain talent is another critical concern. Survey results indicate that these conditions severely impact business competitiveness, prompting companies to consider relocating or investing in other states. The political landscape, including the rise of democratic socialist Zohran Mamdani as a mayoral candidate, has further raised worries about policies that could drive businesses away. Mamdani’s agenda includes freezing rents and increasing taxes on corporations and high-income individuals to finance public services.
While Governor Hochul supports affordability measures, she has expressed hesitation in raising taxes due to concerns about maintaining competitiveness with other states. Survey participants have highlighted a pressing need to reduce government regulation and business taxes to create a more favorable competitive landscape in New York. Moreover, burdensome insurance costs, litigation, and complicated licensing and permit processes are cited as significant barriers to business.
In his campaign, Mamdani has pledged to assist small businesses by cutting fines and simplifying regulatory processes if elected, along with a commitment to review unnecessary regulations. Business owners have reported feeling overwhelmed by the complexity and lack of clarity in government processes related to permitting and compliance.
Across the board, there is growing sentiment among business leaders that New York is losing its appeal as a place for investment and growth due to regulatory and tax burdens. This is particularly evident in New York City, where the current job market and high living costs contribute to challenges in retaining and recruiting employees.
The report outlines the necessity for active collaboration between the government and the business sector to tackle these pressing issues that threaten economic growth in New York State.
Deeper Dive: News & Info About This Topic
- Insurance Journal: New York Business Challenges
- Spectrum News: Alarm Over New York Business Climate
- Business News Daily: Doing Business in New York
- New York Times: Business Regulation and Growth
- EY Tax News: New York City Public Input Sessions
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
