Bloomberg Gets It: Small Businesses Help Urban Economies Thrive

Above: Mayor Bloomberg at Terrafina, a food manufacturing company that recieved one of the four SBS workforce training grants last week. (Courtesey of NYC Dept. SBS)

The Big Apple, while unique in many ways, has an economy that is actually very much like many of America’s urban areas: the city is driven by its growing small businesses.

What makes New York City different, however, is how the city’s leadership has supported the small business climate.

Shortly after taking office, New York City Mayor Michael Bloomberg established the city’s Department of Small Business Services (SBS).  Here, budding entrepreneurs can find the support and services needed to help train workers, access capital and handle permitting issues.

Sure, many cities have departments to help small businesses. But what makes NYC’s Department of SBS stand out is its ability to produce results. Behind the talk, there’s some real action. Highlights of accomplishments include:

• In 2010, SBS helped to create or fill 31,000 jobs. This year’s number could very easily hit 35,000.
• In 2010, SBS helped 639 entrepreneurs get loans totaling $21 million
• SBS sponsors 64 Business Improvement Districts to help promote and maintain clean, safe and business-friendly neighborhoods.
• SBS is currently awarding nearly $700,000 in workforce training grants to companies across the city.Just last week, the city awarded four local businesses monies totaling $182,000 for employee training programs. The awards will be used to train 63 New Yorkers, resulting in 15 new hires and average wage increases of 10 percent.
• Since its inception in 2005, SBS has provided more than $8.1 million in training funds to NYC businesses.

Bloomberg explains that when small businesses invest in their employees and help to train them, it spawns growth for the companies (and often, higher wages for employees). As companies grow, they hire additional workers. 

The SBS support is particularly important in NYC where 63% of all businesses employ fewer than 5 people; 98% of all businesses have fewer than 100 employees. Small businesses are the heartbeat of this urban economy.

At a time when politicians everywhere are looking for ways to pull America out of this recession, it is important to recognize the leaders who understand what it takes to do so. Small businesses create about 2 out of every 3 new jobs.  More than half of all Americans own or work for a small business. Small businesses drive growth and innovation.

Mayor Bloomberg clearly gets it. 

BY Amanda Maher on September 20th, 2011

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