Manhattan Borough President Scott M. Stringer today released “Start-Up
City: Growing the Entrepreneurial Ecosystem for All,” a wide-ranging
report on the future of New York City’s thriving entrepreneurial economy and how
to make it a pipeline to the middle class. As the tech and entrepreneurial
sectors of our City economy continue to grow, Borough President Stringer’s report
puts forward core recommendations that would grow the economy from the bottom
up, create new jobs and keep New York competitive on the world
stage.
While New York is outpacing many other U.S. cities in fostering start-ups,
large swaths of today’s entrepreneurial ecosystem lie beyond the reach of
millions of working class New Yorkers. Innovative economies—from finance,
fashion, and food to marketing and media—could offer a gateway to the middle
class for thousands of New Yorkers – but only if the City ensures that workers
have the skills needed to fills these jobs.
“New York City is in the midst of an entrepreneurial revolution, but the
benefits of this revolution are not reaching all New Yorkers” said Stringer at
WeWork, a shared workspace in Lower Manhattan for new start-ups. “Employment in
tech and other emerging industries can be a ticket to the middle class, but only
if New York City makes significant investments in expanding this economy into
all five boroughs.”
This year, New York City replaced Boston to become the #2 hub for tech
expansion and growth in the country. And yet many New York City employers report
that they cannot find workers with the necessary skills to fill these new jobs.
To keep pace with these economic strides, Stringer says the City must invest in
education, infrastructure, and government efficiency measures that will boost
the start-up economy and continue to make New York City competitive in the
coming decade.
“It’s astonishing that at a time when our local unemployment rate is hovering
around 9.3%, employers are being forced to look outside New York to find
qualified candidates,” Stringer said. “We can change this trend through
investments in education, infrastructure and the streamlining of government
operations, and make the entrepreneurial economy a true pipeline to the middle
class.”
To expand access to the jobs of the entrepreneurial economy, and support its
future growth, the report issues several recommendations:
- A Curriculum for Tomorrow, Today: As part of ensuring
that all New York City public school students have the skills they need to
succeed, the Department of Education (DOE) should offer expanded computer
science curricula in schools throughout the City. To support this effort, the
Mayor should convene a group of entrepreneurs from a variety of fields to inform
a curriculum of skills that can be used to prepare all our students for the jobs
of tomorrow.
- Create a Municipal Fiber Network: New York should explore
the creation of a municipal fiber network by using publicly-owned assets –
including transportation and utility infrastructure – as conduits for sparking
competition among internet service providers and improving internet
connectivity.
- Build Out NYC Digital to Match the Office of Film/TV: NYC
Digital/NYC Business Express should be a true one-stop shop for budding
businesses, with an emphasis on fully-integrated online applications for permits
and licenses, as well as “digital expeditors” who can address the unique needs
of emerging tech industry.
- The Empire Engineers Initiative: The City should launch a
joint City-State financial aid program for students who major in engineering and
promise to work in New York City/State for at least five years after
graduation.
- Streamline the Department of Buildings: Relieving the DOB
of its responsibility over building inspection and remediation would allow DOB
to focus on the business of business—ensuring that entrepreneurs could get
permits, plans, and licenses in a reasonable time frame and providing valuable
customer service to innovators throughout the five boroughs.
- Launch the Mayor’s Cabinet for Emerging Business
Development: To help bridge the gap between a fast-moving private sector and
a slow-moving government, New York City should establish a Cabinet for Emerging
Business Development made up of local entrepreneurs to advise the Mayor’s office
on how City government can provide timely support to local
businesspeople.
- Embrace Crowd-Sourcing for Office Space: Medium-sized
businesses often have difficulty finding affordable, attractive office space.
Too big for incubators, but too small to rent an entire floor of Class A space,
these growing businesses are often left in the lurch. NYC Sharespace would act
as a bulletin board for start-ups to join forces with each other in the search
for viable office space.
- Reform Parking Minimums on Residential Property Near
Transit: Requirements that developers devote scarce land to provide parking
spaces often reduces the size and number of housing units they can build, making
projects less affordable.
- Continue Experimenting with Micro Zoning: The City should
consider further modifications to zoning laws and building codes to allow for
development of small, affordable apartments that attract young, creative class
professionals to the City.
- The STEM Cell: CUNY should develop a dedicated STEM
program that enrolls a wide array of high school graduates in science and math.
By offering two-year degrees, the STEM Cell will enable graduates from
populations that are severely under-represented in the local tech industry to
quickly fill the gap in coding and other “middle-skill” jobs.
- Use Light Rail and Bus Rapid Transit to Connect Burgeoning
Job Corridors: The 21st century economy is emerging throughout the five
boroughs, and we need a transit system that reflects where people live and work
today, not 100 years ago.
The findings and recommendations of Start-Up
City are based on interviews with key New York City stakeholders as well
as on successful strategies already at work in other cities and around the
world.
“Borough President Stringer’s report correctly identifies many public policy
interventions that are needed as the city transitions to a high tech economy,”
stated Kathryn Wylde, President & CEO of the Partnership for New York
City. “His approach suggests how New York can maintain its status as a global
business capital, while ensuring all its residents, workers and entrepreneurs
the opportunity to share in the benefits that result.”
“The rise of the creative class is dependent on an economic climate that is
accessible to all,” said Richard Florida, author of “The Rise of the
Creative Class.” “I commend Manhattan Borough President Stringer on a
forward-looking report that considers how urban centers can multiply points of
entry to the entrepreneurial economy, making those thriving industries a gateway
into the middle class.”
“I am thrilled to see a government official taking a hard look at the
challenges facing the urban entrepreneurial economy,” said Scott Gerber,
founder and president of the Young Entrepreneur Council. “What is needed most
from government are real solutions to improve our infrastructure, invest in
entrepreneurship education, and expand the entrepreneurial ecosystem. As the
founder of the Young Entrepreneur Council, an organization comprised of hundreds
of America's most successful entrepreneurs, I know firsthand the obstacles that
confront startups in New York City – a shortage of skilled workers, bureaucratic
red tape, weak internet connectivity, and a lack of affordable housing and
office space. Borough President Stringer’s report addresses many of these
issues, and makes critical recommendations about how we can expand the
entrepreneurial economy to all New Yorkers and create thousands of jobs in the
process.”
“WeWork is delighted to host this event that celebrates the entrepreneurial
spirit and recognizes the particular challenges of being an entrepreneur,” said
Adam Neumann, founder of WeWork. “At WeWork, our mission is to empower
and support these bright and courageous individuals while helping them develop a
"we" mentality and proving that working together is a better way to work. We are
so pleased that the City of New York shares the same goals.”
“Start-Up City is the most comprehensive report on the impact of technology
ever produced by a New York City public official,” said Andrew Rasiej,
founder of Personal Democracy Media. “This report clearly articulates that
government must invest in education, infrastructure, and connectivity, while
streamlining the permitting process for new businesses, in order to help all
entrepreneurs succeed and create a globally competitive 21st century New
York"
"The technology sector has the potential to be one of New York City's
economic pillars. For that to happen, we need to lay down a solid foundation for
its continued growth. Two areas that deserve particular attention are cost of
living and access to talent. Making sure the best and brightest can earn a
reasonable living and providing them with direct lines to technology companies
are major steps toward establishing a lasting tech industry in New York," said
Brian Wang, entrepreneur and founder of Fitocracy.
"Scott Stringer's report is an important step in recognizing the challenges
New York City faces creating an environment for tomorrow's technology jobs,"
said Ryan Charles, entrepreneur and founder of Consumr.
Office of Manhattan Borough President Scott M. Stringer • 212.669.8300
1 Centre Street, 19th Floor • New York, NY 10007 • © Copyright 2006
The Manhattan Borough President’s Office is an Equal Opportunity Employer.