Streamlined regulations aim to ease startup barriers across five boroughs
In his first two weeks as New York City mayor, Zohran Mamdani signed Executive Order 11 on January 14, targeting one of the city’s most significant barriers to small business growth: excessive fines and fees. The order directs city agencies to create a comprehensive inventory of all municipal penalties and charges, then systematically reduce or eliminate them. Deputy Mayor for Economic Justice Julie Su will lead the effort, coordinating with seven city agencies across what Mamdani called a regulatory landscape that forces businesses to navigate over 6,000 rules. h3 The Problem Small Business Owners Face h4 More Than Red Tape The mayor signed the executive order at Sweets and Things, a Cypress Hills bakery that exemplifies the success achievable when entrepreneurs can focus on operations rather than paperwork. Owner Yesenia Rodriguez described her nine-year journey to opening the popular shop, emphasizing how critical the business environment becomes for Latino-owned enterprises. Rodriguez told reporters that businesses, especially minority-owned ventures, have historically struggled under the weight of municipal requirements. The city’s regulatory framework has been described by policy analysts at the Brookings Institution as outdated and unnecessarily complex, creating cumulative costs that small business owners must absorb or pass to consumers. h3 How the Executive Order Works h4 Phased Approach Over Twelve Months The order establishes clear timelines for reducing the regulatory burden. Within 45 days, the seven agencies must identify all fees and civil penalties they currently collect. Research from the Chamber of Commerce of the United States shows that regulatory compliance costs disproportionately affect small enterprises, which spend roughly 20 percent more per employee on compliance than larger companies. Within 90 days, agencies must determine which fees are unnecessary and can be eliminated through rulemaking. Within 180 days, the administration will identify additional fees requiring legislative action. Finally, within one year, the city will explore an amnesty program for business owners previously assessed penalties. h4 Focus on Economic Justice Deputy Mayor Su has previously worked on labor advocacy and fair wage initiatives, bringing a worker-centered approach to economic policy. Economic Policy Institute research indicates that reducing compliance costs helps small businesses invest more in wages and expansion rather than bureaucratic overhead. The emphasis on businesses in neighborhoods with high immigrant and low-income populations reflects data showing that these enterprises receive disproportionate enforcement of city violations. h3 Support from Business Community Leaders Sweets and Things owner Rodriguez emphasized that the mandate acknowledges businesses as partners in building the city’s economy. She noted that successful entrepreneurs often emerge despite the system, not because of it. Industry advocates, including leaders at the National Federation of Independent Business, have consistently cited municipal fee structures as deterrents to opening new ventures. The order signals that the new administration views small business relief as integral to addressing New York’s high cost of living. h3 Pathway to Broader Economic Reform Mamdani stated in the executive order announcement that “you cannot tell the story of New York without our small businesses.” The approach reflects campaign promises to address affordability across multiple dimensions. Policy analysts from the Urban Institute have noted that small business vitality contributes to neighborhood stability, local employment, and community cohesion. The fee reduction initiative represents a test case for how city government can reduce barriers without sacrificing public services or worker protections. h4 Implementation Challenges Ahead Some city agencies have expressed concerns about reducing revenue from penalties, which fund enforcement operations. The mayor’s office indicated these concerns will be addressed through the budget process and rulemaking procedures. Transparency will be critical, as business owners need clear guidance about which fees have been eliminated or modified. h3 What Comes Next The administration plans to provide regular updates on progress toward the 90-day and 180-day benchmarks. City agencies must coordinate across silos, and the mayor emphasized that collaboration between different departments will be essential. The amnesty program component could benefit existing business owners who faced past violations but lack resources to appeal or resolve penalties. Small business advocates suggest this element could help rebuild community trust and enable entrepreneurs to restart operations with a clean slate. The executive order positions New York City as attentive to business concerns while maintaining environmental and safety standards. Small business owners watching this initiative will gauge success by actual fee reductions, not just inventory reports. If implemented effectively, the order could strengthen the city’s economic foundation while delivering on Mamdani’s pledge to make New York more affordable for workers and entrepreneurs alike. For more information on city business resources, visit SBA New York office and for policy context see Urban Institute Metro Policy.
