It’s no secret that things have been bad for small businesses in these unprecedented times, especially in New York City. A study from the Partnership for New York City found that roughly one-third of small businesses in the city may never reopen, a huge number of which were tech startups. Since small businesses made up 98% of the city’s employers, things have been bad for the economy. As a result, other small businesses started packing their bags as well leaving market gaps for big tech businesses to move into.
However, what about the post-pandemic era? Will New York City still be a good place for small businesses? Today, we’ll discuss reasons why tech startups may want to return to the Big Apple.
There’s a robust tech market
The market may be slow at the moment, but New York City is still the home of some of the country’s biggest tech companies, like Verizon, Etsy, and IBM. The 2020 Global Startup Ecosystem report even ranked the city as the one with the second-best tech ecosystem in the world (a little under Silicon Valley).
There’s always funding for growing startups, too, and a huge movement in the field of artificial intelligence and machine learning. When things have calmed down, the market will likely thrive even more.
There’s support for tech startups
The pandemic may have caused many problems, but that doesn’t mean that the local government and affiliated organizations have left startups to fend for themselves. For example, enterprise tech solutions company Work-Bench provides startups in New York City with the necessary tech to outlast this year’s struggle.
Meanwhile, small business LLC owners in New York City receive a lot of support from the government and nearby organizations such as with tax incentives, software development training, and much more. Entities like My Own Business Institute, Long Island High Technology, and TechStars even offer a library of resources startups can use to grow their companies.
The lofts are still standing
New tech companies are staying away from spacious, dull offices and high ceiling buildings. Instead, they’re opting for small, manufacturing lofts — many of which are built in the city. In fact, an article in the Chicago Tribune reports that tech executives love loft buildings because they’re versatile with a lot of “character.” They also better reflect the kind of collaborative work culture tech startups are known for since the setup can be easily moved around. A lot of these lofts are vacant at the moment, but they will still be there after the health crisis has passed. The SoHo neighborhood in Manhattan alone has a lot of these spaces.
So, should tech startups consider moving back to New York City? The short answer is yes. With Amazon being pushed out last year, the market is still there, and the community has been more supportive than ever. Plus, there are plenty of affordable lofts available.