Economic Situation
Semyon Razhberg
Contents
1. Economic Situation
2. La Marqueta Internacional
3. The Zones
4. Sources & Citations

 

Since major retailers have been slow to develop in East Harlem, most economic activity is derived from small businesses. Among the fears of the small business owners in this area is a potential “tidal wave” of such large retailers, which they believe could become impossible to compete with given their greater financial resources (Chamberlain). This includes Pathmark, which announced that it would set up a supermarket in the area nine years ago. (see Gentrification) Despite the threat of enfranchisement, East Harlem local entrepreneurs still prosper. Especially with publicly sponsored projects such as La Marqueta Internacional being developed to provide an ideal public market environment for their growth.

Financial Resources
The greatest deterrent to small business is the lack of start up capital. For this reason, soon after Pathmark announced its plan to come to East Harlem, the East Harlem Business Capital Corporation (EHBCC) was founded in August of 1999. The same organization is currently organizing the La Marqueta Internacional. Along with Acción, the country's largest private nonprofit microlender, the EHBCC provides numerous low interest loans to upstart and expanding East Harlem Business, ranging from $2,500 to $65,000 (Chamberlain). Besides loans, EHBCC gives people access to technical support, technology training, and a free business educational program for start-up and home-based businesses. In addition to these benefits, microlanding in general helps to build up the credit of individual benefactors enabling them to attain greater loans from banks later on.

Benefactors of these programs include Mr. Rodriguez, who attended a 13-week organization business workshop. Using his own money and a $10,000 low interest loan, he plans to sell utensils he invented for the cooking plantains. He will operate from a 1,100 square foot on second-floor space on East 108th Street between Lexington and Third Avenues, both manufacturing and selling his utensils from there. Rene Izquierdo Batisdas is another benefactor. Originally from Ecuador, he had opened a jewelry store at the corner of 116th Street and Third Avenue. Mr. Batisdas had attained bad credit when his old jewelry store failed. Acción provided Mr. Batisdas with three much needed loans totaling $65,000 enabling him to expand his business into East Harlem where he has been successful (Chamberlain).

Financial Incentive
Many businesses in East Harlem are eligible for several tax benefits, grants, and low interest loans because they are located within the East Harlem Empire Zone and the Upper Manhattan Empowerment Zone. These are New York state backed institutions that provide these benefits to areas most in need of this kind of support. These organizations also provide grants to other companies that specialize in distributing funds to business in the form of loans such as the EHBCC and Acción. In fact, the EHBCC will acquire much of the funding for La Marqueta Internacional through loans from the Upper Manhattan Empowerment Zone Corporation.

Next (La Marqueta Internacional)