The Assembly Committees, Commissions and Task Forces are sponsoring this roundtable to examine micro-business issues in
the upstate economy. The roundtable will bring together experts from micro-business development organizations, micro-loan
programs, community development funding institutions, marketing co-operatives and business owners, and library business
centers to discuss strategies for improving the State's assistance to micro-businesses. The Assembly panel welcomes
recommendations on how the state can promote entrepreneurship within the workforce development system upstate, where plant
closings and corporate downsizing in small cities have limited the potential for re-employment. In addition, the Assembly would
like to improve assistance for entrepreneurs and new businesses in rural communities that have suffered from loss of farms and
other employers.
BACKGROUND
Micro-enterprise development is a proven, viable grassroots strategy for achieving significant gains in the incomes and assets of
citizens excluded from the economic mainstream, yet the State has heretofore done relatively little to encourage it.
Micro-businesses, generally defined as businesses enterprises with five or fewer employees, account for 88% of all businesses in
New York State, and employ approximately 20% of the State's workforce. There are currently 1.6 million micro-businesses
operating in New York, generating approximately $58 billion in annual revenues. Micro-businesses generate jobs, often in
communities with high unemployment, and provide route to economic self-sufficiency. Home-based and part-time
micro-businesses can be an innovative way for families, and in particular women, to combine child-rearing with income generation.
From an economic development perspective, serving micro-businesses and small businesses is labor intensive relative to the size
of grants and loans given out. However, costs per job created have been shown to be low compared to many economic
development programs.
The State has a number of programs in statute to encourage micro-enterprise development, including the Minority-Owned Business
Development and Lending Program, the Entrepreneurial Assistance Program (EAP), the SUNY Small Business Development
Centers, the Self-Employment Assistance Program, and the Rural Revitalization Program under the Urban Development
Corporation. However, these programs may not be as effective as they could be. Overall budget allocations for these programs
are relatively low, and are inconsistent from year to year. Actual expenditures by the State are difficult to track, due to the broad
funding streams through which micro-business development monies flow. Finally, restrictions in statute such as the caps on
micro-loan amounts and eligible populations may need to be re-visited. The roundtable will help us to learn more about how to
best assist micro-businesses, and to make the case for robust state support.
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