Seven agencies ordered to catalog regulations strangling entrepreneurship across NYC
Mayor Zohran Mamdani launched an ambitious regulatory audit on his 14th day in office, ordering seven city agencies to catalog every fee and penalty facing small business owners within 45 days. The executive order signals a departure from decades of enforcement culture that industry leaders say has created a labyrinth of regulations stifling entrepreneurship across the five boroughs. On Wednesday at a Cypress Hills, Brooklyn event, Mamdani announced the initiative through Executive Order 11, directing agencies to identify fees that could be reduced or eliminated through rule changes within 90 days and those requiring legislative action within 180 days. A comprehensive report on potential amnesty programs will follow within one year.
The Cost of Regulation
The mayor framed the effort as fundamental to NYC’s economic future. “You cannot tell the story of New York without our small businesses,” Mamdani stated. “Yet, our City has long made it too hard for these same businesses to open their doors, and to keep them open.” The administration identified more than 6,000 regulations small businesses must navigate, ranging from frozen dessert permits to inspection-related penalties. Industry groups including the Five Borough Jobs coalition applauded the move. Tom Grech, president of the Queens Chamber of Commerce and FBJC co-chair, told reporters that the mayor met extensively with borough chamber leaders as mayor-elect, spending nearly an hour discussing specific regulatory pain points. “This was one of the things we suggested,” Grech said of the executive order, calling it “a great first step.” Grech emphasized that small businesses face mounting pressures beyond city regulation, including soaring insurance costs, supply-chain disruptions, and rising utility bills. He described the executive order as a “shot in the arm,” particularly for operators who lack the staff or legal resources to navigate thousands of city rules.
From Enforcement to Partnership
Grech urged the administration to rethink what he termed a “fine first, ask questions later” enforcement culture. He warned that duplicative or unclear penalties cost businesses thousands of dollars monthly and called for the city to shift away from relying on fines as a revenue source toward a more educational, corrective approach. The FBJC also hopes the mayor will establish a small business director or “czar” reporting directly to the mayor, providing owners with a stronger advocate inside City Hall.
Building on Past Efforts
The initiative builds on steps taken under former Mayor Eric Adams, whose administration announced measures in May 2025 to cut red tape, including reducing certain fines and updating inspection procedures. Grech described those initiatives as an important starting point, calling Mamdani’s order part of a broader continuum. When asked about Adams’ previous effort, Mamdani responded directly: “The plight of small businesses is not new, neither is the recognition of that plight. What has been missing, however, is action on that issue.” The mayor’s regulatory relief push is part of a broader economic justice agenda that includes universal childcare and expanded worker protections.
What Industry Leaders Say
Industry observers note that the success of Mamdani’s initiative depends on follow-through. The FBJC plans to meet regularly with city agencies to ensure the audit process is transparent and that recommendations meaningfully reduce business burden. The next 90 days will be crucial. Agencies must complete their fee and penalty inventories by March 25. By July 2, the administration must identify penalties that can be reduced through rule changes. Those requiring legislative action have until December 24, giving the City Council time to act. Business leaders are hopeful but cautious. For guidance on compliance and small business regulations, see the Department Consumer Affairs and Small Business Administration resources.
