Silicon Valley gets all the hype and attention, but there’s an argument to be made that New York City was the original Silicon Valley. Long before the state of California was even declared an official territory, New York City was teeming with small business owners, entrepreneurs, and wealthy investors. From law firms and advertising agencies to garment businesses and restaurants, thousands of businesses were launched in NYC during the early years. Since then, tens of thousands of additional ventures have been launched. Let’s take a look at some of the reasons why New York is still considered one of the top places to launch a business.1. Center of the World
While you could make an argument for London, Paris, or Los Angeles, the reality is that New York City is widely considered to be the center of the universe. Whether it’s business, fashion, sports, finance, or real estate, NYC is king. As an entrepreneur, it only makes sense that you would want to be where things are actively happening. As Mark Twain famously said, “Make your mark in New York and you are a made man.”
2. Successful Investors Call NYC Home
During the recent recession, startups all over the country felt the painful reverberations. Funding simply wasn’t available like it was in the decades prior. In Silicon Valley, venture capital deals declined by 10 percent. They declined by as much as 38 percent in San Diego. And when looking at the country as a whole, venture capital deals were down a strong 11 percent. What about NYC? Venture capital deals grew by a stunning 32 percent!
What does that say about the strength and resiliency of NYC? Even during the country’s toughest economic stretch since the middle of the 20th century, NYC investors were confident enough to pour money into local startups. Now that the economy has recovered, these same investors are digging even deeper into their pockets.
3. Access to Talent
Very few places can boast the type of talent that’s available in New York City. Not only are there fantastic schools like Cornell, Columbia, and NYU, but thousands of college graduates from around the world move to the city after graduation in hopes of starting successful careers.
While startups may not be able to compete with Wall Street and Fortune 500 companies for top-level talent, the leftovers aren’t bad. In fact, these ‘leftovers’ would be considered the proverbial cream of the crop in other cities. By strategically situating a startup in the Big Apple, you can put your company in front of thousands of qualified professionals.
4. Tax-Free Zones
Did you know that New York has 10 tax-free zones that allow businesses to pay zero taxes for 10 years? This could potentially save your business hundreds of thousands of dollars – if not millions. While a number of the tax-free zones are outside of the city, there are a few within NYC.
5. Lots of Tangible Resources
Whatever you need, you can find it in NYC. That’s the reason so many businesses uproot from other locations and move to the city. You can work in the city and have everything you’ll ever need within a 15-mile radius, or work in another state and end up traveling to NYC on a regular basis. In fact, this is the primary reason some entrepreneurs move to the city. They’re so tired of traveling back and forth that they feel like it’s worth it to move.
6. Strong Learning Centers
As an entrepreneur, it’s important that you surround yourself with people and resources that allow you to continually improve. The great thing about NYC is that there are a number of strong learning centers for people just like yourself. From initiatives like the NYC Business Networking Group and New York Entrepreneurs & Startup Network to our very own Built in NYC online community, New York-based businesses have tons of resources at their fingertips.
7. Thriving Entrepreneurial Culture
The culture in NYC is conducive to the entrepreneurial spirit. There’s a tremendously high level of innovation and creativity, regardless of what industry you work in. This is advantageous, as it gives you a strong support system of people who have likeminded goals, dreams, and aspirations.
8. Diverse Problem Set
There’s a lot going on in New York City. And with so many different people crowded together, this also means there’s a diverse problem set full of palpable pain points no products or services are currently solving. As an entrepreneur, this is exciting. You could find inspiration for an idea by simply walking down the street. This also means that you have a deep pool of early adapters to help fuel your startup’s growth.
