Executive Order 11 Streamlines 6000 Regulations Helping Entrepreneurs
In his first two weeks leading New York City, Mayor Zohran Mamdani signed Executive Order 11 on January 14, targeting one of the city’s greatest barriers to small business growth: excessive fines and fees that consume resources entrepreneurs need for payroll and expansion. The executive order directs city agencies to create a comprehensive inventory of all municipal penalties and charges, then systematically reduce or eliminate them.
The mayor signed the order at Sweets and Things bakery in Cypress Hills, Brooklyn, where owner Yesenia Rodriguez described her nine-year journey to opening her now-popular shop. Rodriguez emphasized how critical a supportive business environment becomes for Latino-owned enterprises.
The Problem Small Business Owners Face
More Than Red Tape
The complex web of over 6,000 city regulations creates cumulative costs that businesses absorb. Research from the Brookings Institution demonstrates that regulatory compliance costs disproportionately affect small enterprises, which spend approximately 20 percent more per employee on compliance than larger companies.
Rodriguez told reporters that businesses, especially minority-owned ventures, have historically struggled under the weight of municipal requirements. She noted that nine years elapsed before her bakery could open, with regulatory navigation consuming capital and attention better spent on operations.
How Executive Order 11 Works
Phased Approach Over Twelve Months
The order establishes clear timelines for reducing regulatory burden. Within 45 days, seven city agencies must identify all fees and civil penalties they currently collect and publish findings. Within 90 days, agencies must determine which fees are unnecessary and can be eliminated through rulemaking.
Research from the U.S. Chamber of Commerce shows that reducing compliance costs helps small businesses invest more in wages and expansion rather than bureaucratic overhead. Within 180 days, the administration will identify additional fees requiring legislative action for elimination. Finally, within one year, the city will explore an amnesty program for business owners previously assessed penalties, potentially resolving accumulated violations blocking future operations.
Focus on Economic Justice
Deputy Mayor Julie Su has previously worked on labor advocacy and fair wage initiatives, bringing a worker-centered approach to economic policy. Research from the Economic Policy Institute indicates that regulatory simplification particularly benefits immigrant-owned and minority-owned businesses that navigate both language barriers and financial constraints.
The emphasis on neighborhoods with high immigrant and low-income populations reflects data showing these enterprises receive disproportionate enforcement of city violations.
Support from Business Community Leaders
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 at the National Federation Independent Business consistently cite municipal fee structures as deterrents to opening ventures.
The order signals that Mamdani’s administration views small business relief as integral to addressing affordability challenges.
Pathway to Broader Economic Reform
Mamdani stated that “you cannot tell the story of New York without our small businesses.” The approach reflects campaign promises to address cost-of-living challenges across the city. Policy analysts from the Urban Institute note 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.
