With the rapid building of global online presences, it seems that economic borders are becoming less of an obstacle in company growth. Businesses are increasingly catering to global audiences thanks to the instantaneousness of electronic communication and the ability to outsource work to various time zones. So why are we seeing an increasing number of organizations and governments turning their efforts toward encouraging and building up international business exchange?
First of all, for small and medium sized companies, going international still is a major effort for many reasons including language, cultural differences and regulations, to name a few. Secondly, the US with its larger consumer market, the thriving tech ecosystem, and investment- friendly environment, has become more attractive than ever for global companies to set up shop.So what is New York doing to foster international relations?
NEW YORK’S GLOBAL DEVELOPMENT
The importance of focusing on both inbound and outbound international business has not been lost on New York’s Governor Cuomo. New York State is well on its way to enhancing international business, with the newly launched Global NY initiatives and the Start-Up NY Program initiated last year. New York State is revitalizing business beyond NYC by offering incentives, programs, and partnerships to both domestic and international businesses looking for their next big move.
Global NY
The goal of this initiative is to attract international business investment to New York while also helping local businesses to export globally. Global NY has several aspects, the most notable of which is the $35 million Global NY Development Fund which will be spread across several initiatives to aid small- and medium-sized businesses in New York.
Twenty-five million of the fund will be in the hands of the state’s economic development corporation—Empire State Development (ESD). The money will go toward loans for small businesses that have a difficult time accessing traditional credit markets; the loans will enable them to develop the capacity to enter new markets. While the details of the program still need to be announced, ESD will also work with private lenders to raise an additional $50 million in lending for this initiative.The other $10 million of the fund goes toward grants for small- and medium-sized businesses to enable them to export internationally. With the grants, companies can develop website translation, international market certification, and can adapt their products to international markets. Additionally the Federal Export/Import Bank is partnering with New York State to provide short-term loans to small businesses for export financing.In addition to this, Global NY will ensure that New York State participates in trade missions to connect New York businesses with international opportunities in countries such as China, Mexico, Canada, Israel, and Italy.On the day the initiative was unveiled, Governor Cuomo said, “Today is about opening new markets to the State, and we will aggressively market the State, and share with the global business community that there is no better place, with no better tools and resources, than the Empire State to grow and compete.”
Start-Up NY
The other prominent initiative New York is backing in order to bring innovative companies into the state is Start-Up NY. Launched in October 2013, Start-Up NY is a partnership between universities and new businesses that endeavors to encourage and aid entrepreneurism and innovation in the state. In order to be eligible businesses must have a mission that is in alignment with a college or university’s academic mission. The partnership allows eligible businesses to access the universities’ existing infrastructure, industry experts, student talent, and resources such as high-tech laboratories. Additionally participating startups will operate tax-free for up to 10 years. The universities in return are able to further their mission and have their students gain valuable experience working with these businesses. Over forty schools have been approved for START-UP NY, establishing more than 225 tax-free areas for new or expanding businesses to operate on or near campus.The program is best suited to maturing startups and comes with some restrictions as only companies from the following growth industries are eligible: manufacturing, biotech and life science, tech and electronics, optics and imaging, cleantech and renewable energy, food and beverage, and transportation.SuccessesIn just over a year of operation the program has already seen great success. According to a press release from October, 2014 the program had already seen 41 businesses participating, representing 1,750 new jobs and approximately $77 million in investment across the state.One notable example is the Liazon Corporation which joined Start-Up NY in July of 2014. A provider of private online benefits exchanges, Liazon partnered with the University of Buffalo to open new headquarters near the university. Liazon is expected to create 500 new jobs in the next five years and will recruit University of Buffalo graduates with degrees in management information systems, business, accounting and marketing. The company will also be able to collaborate with university faculty on research and curriculum development.Other companies have come from further away, such as Appistry which expanded from St. Louis, Missouri. The company, “partners with premier research hospitals and biotech companies to develop diagnostics and analyze genomic data using high-performance computing and the company’s patented bioinformatics technologies.”Appistry will be able to collaborate with university faculty and researchers while also providing internships for graduate students in bioinformatics.Good news for NYC startups is that the Start-Up NY program has been extended to NYU Poly’s three incubator programs—Urban Future Lab, DUMBO Incubator, and Varick Street Incubator. Startups are tax-free while residing in these incubators—including several international startups such as German startup KISI, and Scottish smart grid company Smarter Grid Solutions. As incentives like Start-Up NY continue to be a priority for New York, we can hope to see even more international expansion both into and out of the state.