We all know small businesses are integral to the economy. However, Goldman Sachs reports that small businesses have been struggling to grow and to provide the jobs important to middle class America.
The report, entitled “The two-speed economy” submits there are “an estimated 600,000 ‘missing’ small firms, and six million (missing) jobs associated with these firms, as of 2012.” This is compared to the amount of small firms and jobs created during past economic rebounds.
The report also comes to the troubling conclusion that willingness to start a business as the sole-proprietor has been particularly weak. Starting one’s own business is the typical direction the talented take after they are laid off, or if their current job does not meet their needs.
The U.S. Chamber says there is no “definitive reason” to explain this trend, but they assert that it can be attributed to the “avalanche of regulations imposed on our nation’s small businesses.” They explain that small businesses are least able to cope with the immense burdens of government regulations, and the “resulting burdens of compliance and implementation.”
Most people know that today, April 22nd, is Earth Day, but did you know that April is also Earth Month? Wegmans, who already consistently ranks in the top 10 of Fortune magazine’s best places to work, is making news again for their latest go green initiative.
Earlier this month Wegmans announced that it was teaming up with the Nature Conservancy to encourage its customers to use reusable bags. As part of the push, Wegmans will donate $.25 for every pound of paper and plastic bags saved, with a minimum donation of $10,000.
What makes the plan even better for New Yorkers is that all those funds will stay here at home.
Congratulations to Xerox, a member company, on being selected by New York to update the state’s Medicaid claims processing system to a new technology platform that will put the Empire State on the cutting edge.
According to a report in Business Wire, the five-year contract totals just under $565 million. The article quotes New York State’s Medicaid Director Jason Helgerson as saying, ““Xerox is giving New York the flexibility to customize our Medicaid program so we can best serve both the people who rely on this system and the healthcare providers who are on the front lines of caring for them every day. We’ll rely on Xerox to offer a simple and straightforward experience for our service providers and our Medicaid population.”
The story goes on to add that the new system, dubbed Health Enterprise, will allow for:
Modularity and interoperability
Population health management
For more information on the contract, and to read the whole story, please click here.
Are you ready to get WISE? The 13th annual Women Igniting the Spirit of Entrepreneurship (WISE) Symposium kicks off in Syracuse, NY tomorrow. Among the exciting list of featured speakers is Maria Contreras-Sweet, the head of the U.S. Small Business Administration.
According to WISE’s own website, the organization is: “An initiative to train and inspire women interested in launching or growing a business venture. The objectives of all training and events are to provide information, resources, and support for women entrepreneurs, enabling each to successfully advance their businesses to the next stage of profitability and success. Our goal is to create a thriving community of women entrepreneurs through two initiatives: the one-day WISE Symposium and the year-round WISE Women’s Business Center.”
Aside from Ms. Contreras-Sweet, attendees will be treated to innovative networking opportunities, specialized breakout sessions and a buy local expo.
Registration is still open, and incredibly affordable. Click here to sign up now!
Darren Suarez, our director of government affairs and an energy policy expert, sat down with Liz Benjamin of Capital Tonight, on Wednesday night to talk about several natural gas pipelines proposed throughout the state.
“When we have additional natural gas supply it helps to bring down overall electricity costs, and that helps all companies. That helps with all jobs, and that’s why we’re supportive,” Suarez explained.
The discussion focused on the Northeast Energy Direct Project, led by one of our members, Kinder Morgan. The project would connect parts of the existing Tennessee Gas pipeline system in New York and other states. Suarez also discussed the roughly 20 additional pipeline projects that are in varying stages of development around New York.
“We’re really going through a revolution in terms of our energy production and in terms of people’s choices for energy,” said Suarez.
The full interview is linked below. Please note, a TWC ID may be required to view the clip.
Fantastic news for one of our member companies! Verizon just took the top spot in the Military Times’ Best for Vets: Employers 2015 rankings.
The top five are:
Charles Schwab Corp.
According to USA Today: “More companies than ever before responded to this year’s survey, which explored each employer’s recruiting, culture and policies.”
“Service members have an accelerated learning curve,” said Evan Guzman, Verizon’s head of military programs, and he explained the goal isn’t only to bring in talent, but also, “to make sure we at least give them some guidance and support”.
Just in time for tax day, the Tax Foundation is out with a new map highlighting the top marginal income tax rates in each state. It will come as no surprise to residents of New York State that we have among the highest top income tax rates in the country. In fact, only six states plus the District of Columbia rank higher.
In addition to the above map, the foundation’s page has some really great information broken down by state.
Forbes.com is out with a very interesting story about how IBM, a member company, is making a significant foray into the health care industry.
According to the story, “IBM’s pitch is that it will be able to create a new middle layer in the health care system – linking the old electronic records systems, some of which have components dating back to the 1970s, with a new, cloud-based architecture, because of its deep breadth of experience.”
The article goes on to say that as part of the effort, IBM is acquiring two companies, Cleveland’s Explorys and Dallas’ Phytel. The computing giant also announced strategic partnerships with Apple, Johnson & Johnson (also a BCNYS member), and Medtronic.
The entire effort centers around IBM’s Watson computer. You probably remember Watson from its famous appearance as a contestant on Jeopardy! a few years ago.
The article states the jury is still out on whether Watson is up to the task, but IBM is convinced the technology is ready. Stay tuned!
There’s a story in today’s Times Union that should anger every taxpayer in Albany County and across the state. Unfortunately, the story won’t cause the outrage it should – and that’s because it’s become all too common. The case of former Albany County sheriff inspector John F. Burke Jr. is the direct result of a broken workers’ compensation system that leaves New York state taxpayers holding the bag.
Brendan Lyons of the Times Union does a terrific job describing the circumstances of Mr. Burke’s claim. We encourage you to read the full article here. But, we did want to highlight one section:
“The fact that the claimant voluntarily separated from employment does not preclude him from awards, provided he is able to demonstrate reattachment to the labor market,” Loughlin said in a 12-page ruling. “I find that the claimant has demonstrated that he has searched for work since his separation from employment.”
County officials said they were stunned by the decision and will suspend any payments to Burke pending an appeal to the Workers’ Compensation Board.
“I firmly think this is a disgrace and this is what’s wrong with the system,” Sheriff Craig Apple said. “They’re telling us we did everything we needed to do to prove our case, and yet they’re still going to give him $40,000 a year.”
So, what can we do to fix this systemic waste and abuse? The harsh reality is that a legislative fix is just impractical. The state Assembly is not interested in rectifying the problem. Candidly, they don’t even view it as problem. But, The Business Council is working to put real pressure on the Cuomo administration to get this right.
What can you do to help? Contact the Governor’s office, reach out to our in-house workers’ comp expert, Lev Ginsburg (email@example.com), and send us stories of similar fraud and abuse. The only way we will get the wholesale changes needed to protect New York taxpayers is by making our voices heard.