StartUp NY: Where’s The Money Really Going?

Over the past year or longer, New York State has been running television campaigns to spread awareness about the StartUp NY program. The program is meant for small businesses and entrepreneurs to grow companies, creating jobs growth as well as overall economic prosperity. The program boasts free taxes, incentives and interesting statistics (which you will want to look closely at below). Is it really working?

But, there is a catch. Of course, with any government business programs, there are criteria to meet. Actually, in the case of New York State, companies have to be a very specific type of business. Most specifically, it needs to be a high technology business. If you check out the official website, it will list all the industries that are NOT ELIGIBLE.

So, now that New York State has ruled out a large percentage of companies from the start. They also require the businesses to locate themselves inside certain areas. Okay, that’s not too bad. However, certain regions offer only certain types of space, such as laboratories for research. Need a warehouse? You are out of luck if it is not available in your area.

The worst part is that the StartUp NY ads actually come off as if everyone could take advantage. That is just not the case. Even so, these ads come off as wasteful. After all, one of the key statistics that they brag about is the 2300 jobs created. Oh, but that came after saying that over 3.6 million square feet is available. Hmmm. Sounds like NY has a lot of space to fill.

Well, clearly NY is advertising to businesses. They must be trying right? But, if the company pool is too small, no companies will actually be able to take advantage of the benefits. It makes me question the program and viability of it. Sounds like more PR than anything. If New York wants to attract businesses with tax breaks and incentives, then do it for all new business! This way, businessman and entrepreneurs can focus on what they do best. Let the innovation and success do the talking.

Hopefully, some New Yorkers will call out their elected officials on this. Because if they don’t, New York State will continue to lose way more than 2300 jobs and many millions of square feet will be left empty while companies move to states with better business climates. Or, if companies do not move, they will definitely struggle to compete against those with lower taxes, labor costs and overhead.