Creates the niche market assistance projects for small businesses to identify and develop niche markets for their products in competitive environments

1 Co-sponsor

• Adriano Espaillat

BILL NUMBER:S1248

Title of bill

An act to amend the New York state urban development corporation act, in relation to creating niche market assistance projects to promote economic development

Purpose or general idea of bill

To assist small manufacturers to seek niche markets.

Summary of specific provisions

A "niche market" is a targeted market composed of individuals and businesses that have similar interests and needs, which can be readily identified and that can be easily targeted and reached, or group of potential customers who share common characteristics making them especially receptive to the company's product, service or opportunity.

The bill establishes a competitive program in UDC providing grants of up to $200,000 to a not-for-profit corporation or Manufacturing Extension partnership program with a demonstrated capacity to conduct market analysis and seek new markets for niche products for manufacturers, to enable the grant recipients to work with and assist small manufacturers identify and develop niche markets.

Entities eligible to apply for funding for a niche market assistance project include not-for-profit corporations, local development corporations, trade associations, educational institutions, technology development corporations which operate manufacturing extension programs, and other not-for-profit organizations which promote economic development.

Projects eligible to be a niche market assistance include research, market analysis, marketing assistance, and identifying sources of financial assistance to enter into new markets.

Justification

Small manufacturing enterprises are responsible for an estimated 28%-40% of employment in the manufacturing sector. They tend to be more effective at job creation and job replacement, more innovative in the development of products and process improvements, more flexible and thus more competitive, in terms of the ability to produce small quantities. All of these factors help to explain the shift to a smaller average plant size and the national trend toward more of the total production of goods coming from smaller manufacturers.

Small manufacturing enterprises, often owned by, minorities and immigrants, have been growing. Leading this expansion in New York are specialty and ethnic food manufacturers, which have grown by more than 8 percent over the past year. other evidence suggests that there is similar growth in construction; specialty apparel for niche markets and other design-based manufacturing industries such as luxury consumer goods like jewelry; medical instruments; suppliers to

service industries; end companies serving local markets, such as makers of food products or suppliers of construction materials.

Often, small manufacturers can not only survive, but grow, if they can identify and develop niche markets - targeted markets composed of individuals and businesses that have similar interests and needs, which can be readily identified, and that can be easily targeted and reached, or group of potential customers who share common characteristics making them especially receptive to the company's product, services, or opportunity.

Small firms are traditionally hard to reach by centralized state programs. Therefore this program reaches out to local and regional partners who are familiar with and have established relationships with businesses in their areas.

Prior legislative history

2011-2012: Referred to Corporations, Authorities and Commissions 2009-2010: Referred to Corporations, Authorities and Commissions Reported and Committed to Finance

Fiscal implications

Unable to determine at this time.

Effective date

Immediate.