State Gives Area Businesses A Boost

All over Queens, booming businesses testify to the enterprising spirit of the boroughs immigrant population. Such ventures have created thousands of jobs and poured millions into city and state coffers, and now the State of New York is investing some of that money to help the next generation of new business owners grow.
Empire State Development Corp., a quasi-governmental organization that provides loans and grants to businesses across the state, has recently opened an office in Flushing to better reach budding entrepreneurs in that largely immigrant community.
"The government is reaching out at a grass-roots level," said Shirley Leung, director of the Flushing office. "We are looking at the ethnic diversity in each borough to see how we can help directly."
Manufacturing, wholesale and distribution enterprises with under 500 employees are eligible for a wide range of assistance packages. One plan offers matching grants for hiring consultants on accessing international markets, another helps businesses seeking government contracts, another provides loans to purchase new equipment, train workers or buy more space. Ultimately, Leung said, Empire State Development would also like to help develop the Flushing waterfront and the Willets Point area, a large expanse of property widely seen as ripe for development.
Leung, who was born in Hong Kong, is working hard to attract Asian business people in Flushing to the programs the state has to offer. "My role is to educate the community about the possibilities," she said.
If the Flushing venture is successful, Leung said Empire State Development would likely set up offices in the Hispanic communities of Elmhurst and Corona and other immigrant neighborhoods.
Leung explained that many successful Asian business people she met were very averse to taking out loans, because they did not like the idea of being in debt. "They are not used to that kind of idea," she said. "A lot of the older generation [of business people] still function in the traditional way." She added that if they did choose to borrow, they did so within their own group. "They depend on the Asian community," she explained. "They are not used to working with the government."
Empire State Development also offers grants for feasibility studies. Leung noted that many business people in Flushing did not perform such research, which would identify local purchasing power and illuminate area buying patterns and consumer needs. "They believe in their gut feeling," she said. "But theres no backup data." Leung conceded that many Flushing businesses were very successful, but said they could reap even greater profits if they gathered comprehensive statistics on their potential consumers.
Leung pointed out that many Flushing residents could easily afford to purchase clothing at major chain stores, but with only an Old Navy in the downtown area, they shopped at malls in other neighborhoods. She said she believed that if the studies were done, the stores would come.
"Right now Im focusing on outreach to let the community know about the state resources," Leung said. "Many [business owners] dont know what we do." She said she had already made contact with some business owners, and that the response had been positive. Her office has only been open for three months and her efforts have yet to produce fruit.
"I see theres great potential here," she said. "Once we sit down together they see the benefits."
One Asian-owned business that has already put Empire State Development Corp. loans to good use is College Pointbased Crystal Windows and Doors. In 1998, long before Leungs Flushing office opened, Thomas Chen, Crystals Taiwanese-born founder, sought out and accessed the organizations programs. Since then, the company has utilized both Empire State Developments loan and grant options to great advantage.
According to Rajeev Sharma, a project manager for the window and door manufacturer, productivity and profitability have improved with the ongoing help of the programs. Since 1998, the companys profits have grown from $20 million to a predicted $45 million in 2002.
Robert Nyman, the companys business development consultant, said that Crystal had received a total of $500,000 in grants, loans, and an additional $2.5 million in tax waivers and reduced utility fees over the next 25 years. The money helped Crystal construct its new, state-of-the-art building and purchase machinery.
"The incentives made it a lot easier to stay [in Queens]," said Nyman. "It also speeded the growth of the company."
Sharma added that other Empire State Development grants had allowed the company to hire consultants and perform studies of many aspects of production.
Crystal was also able to hire an independent quality monitor to ensure that the new management system was functioning smoothly. "If the management system is working it helps our product," said Sharma, adding that the monitors certification improved the reputation of the company.