Requires the division for small-business to compile an annual report on the state of small businesses

BILL NUMBER:S5659

Title of bill

An act to amend the economic development law, in relation to requiring the division for small-business to compile an annual report on the state of small businesses

Purpose

This bill would require the development of an annual report to be submitted to state leaders, containing but not being limited to specific criteria related to small businesses and micro-businesses. By including relevant small-business and micro-business data and trends that are representative of the state the division of small business can ensure that information is collected and available to small business owners via the small business directory webpage. The report's format shall be developed in consultation with actual small business owners to ensure effective communication of data. The division shall also include an analysis of the impact of local and state regulations and laws that small businesses must adhere to.

Summary of provisions

Section 1: Amends the economic development law section 134 by adding a new subdivision 12 to require the division of small business to compile an annual report on the state of small businesses, particularly those with twenty-five employees or less which shall be known as micro-businesses under the same subdivision. This report would be submitted to the governor, the temporary president(s) of the senate and the speaker of the assembly. This new subdivision lay out base-line criteria for said report, while not restricting said report to only such data. It would also require that the division collaborate with local and state agencies to develop the annual report. The format of said report shall be developed in consultation with various small business owners to ensure the information collected, analyzed and published for the purposes of this subdivision is representative of all small businesses in the state.

Justification

The Division of Small Businesses was created with the intent to encourage small business development. To date, reports on small business ownership and trends have inadequately bridged gaps between data and reality in terms of small businesses. Moreover, accessibility to this data has been severely hampered fox small and micro-business owners. Data related to categories and trends over time has been limited.

While larger businesses and companies can afford to research and develop analyses on such data, small and micro-businesses do not maintain the resources to do so, and therefore they are inherently at a disadvantage.

While the state take steps to address discrepancies and provide small businesses with a level-playing field, the lack of actionable information and data severely limits any potential action or steps such businesses may take to grow or expand. Things such as penalties and fines that all businesses incur at one point or another have

drastically different consequence depending on the size of relevant businesses. Access to such information in a timely manner, without disruption of services, can help mitigate small and micro-businesses start-up costs and issues.

Legislative history

New Bill

Fiscal implications

None.

Effective date

Immediately.