BILL NUMBER: S884
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the elder law and the economic development law, in
relation to encore entrepreneurship
 
PURPOSE:
This bill directs the Office for the Aging and the Department of Econom-
ic Development to expand encore entrepreneurship in the State to empower
individuals 50 years of age or older to establish first-time small busi-
nesses.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new subdivision 18 to section 202 of the elder law to
ask the Office for the Aging, in coordination with the Department of
Economic Development, to establish a task force to make recommendations
to the Governor and the legislature to empower individuals 50 years of
age and older in establishing small businesses. Establishes a definition
of encore entrepreneur as a person 50 years of age or older who is
starting a small business for the first time.
Section 2 adds a new subdivision 13 to section 134 of the economic
development law to require that the Division of Small Business establish
a program to provide education and training specific to the unique needs
of encore entrepreneurs as defined in section 1 and that addresses their
unique issues. Establishes a definition of encore entrepreneur as a
person 50 years of age or older who is starting a small business for the
first time.
Section 3 establishes the effective date.
 
JUSTIFICATION:
While entrepreneurship commonly is viewed as a young people's pursuit,
survey data in recent years shols a growing trend among those aged 50
and older of starting their own business or entrepreneurial venture. In
fact, the Ewing Marion Kauffman Foundation in 2014 found the same
percentage of new businesses were started by older entrepreneurs-those
age 60 and up-as by those between 18 and 29. The Kauffman Foundation
also reports that over the last two decades, the share of new entrepre-
neurs between 55 and 64 nationwide increased more than for any other age
range; this share of new entrepreneurs in this age group grew from less
than 15 gust percent in 1996 to more than 25 percent in 2016. In New
York City alone, chambers of commerce and other groups that work with
aspiring business owners report that city residents over age 50 have
grown from a very small slice of their clientele to one-quarter or more.
Seniors who start their own businesses often have several advantages
over their younger counterparts, including significant years of work
experience and deep networks. Their start-ups create new jobs, open-up
previously held jobs to younger applicants, boost the economy and gener-
ate new tax revenue. Studies show "encore entrepreneurship" also can
promote good health and delay the need for seniors to tap into tax-fund-
ed social support systems. As our population statewide continues to age,
the trend toward encore entrepreneurship will likely become even more
pronounced. Yet no formal programs or services are in place to support
aspiring senior entrepreneurs' unique needs, which can range from the
most basic "how-tos" to expanded technology skill sets.
This bill will make New York a leader in supporting encore entrepre-
neurs. It would bring together the NYS Office for the Aging and Empire
State Development to implement innovative programming and information to
support this growing population of small business owners. First, it asks
SOFA and ESD to create a taskforce made up of economic development
professionals, small business support specialists, senior citizens
organizations, and successful entrepreneurs to develop recommendations
for the Governor and Legislature. Second, it requires ESD's Division of
Small Business to initiate and implement a program to provide education
and training specific to the unique needs of encore entrepreneurs to
help their successful transition into their new enterprise.
 
LEGISLATIVE HISTORY:
2021-2022 - S. 554 (May) / A.9530 (Stirpe)
2019-2020 - S.7939 (May)
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
90 days after enactment.

Statutes affected:
S884: 134 economic development law