By Joshua Cinelli

Last year, foreign investment accounted for roughly one out of every 20 jobs in New York City. As the economy lurches along and elected officials predict an even larger budget deficit, analysts and experts are calling for greater overseas investments.

Ally Gunduz, 44, the first global business director at the Manhattan Chamber of Commerce, is a connector. Her task is to match the needs of foreign companies with what is available in New York City.

As a former trade commissioner for the Swiss Federal Ministry, Gunduz herself has attempted to navigate the international business waters.

“Most trade commissioners don’t have the human resources or the time to be able to assist with services,” said Gunduz. “The Chamber is about partnerships and referrals. There’s only so much the government agencies can do.”

One of the challenges facing Gunduz in the newly created position is to convey to international companies that New York City is still a great place to do business, even amid the current economic turmoil.

Many large international companies already have a branch or store based in New York City, but it is the small- and medium-sized companies from Europe and elsewhere that are looking to make the jump. The New York economy hopes they do.

The Partnership for New York City released a report over the summer prepared by DTZ, the London-based international consultants, which stated that $58 billion worth of foreign direct investment flowed into New York in 2006. This amount continues to increase, adding to the local economy and bucking the nationwide trend where globalization has frequently meant job loss.

“The Chamber’s focus on providing resources that link small- and mid-size businesses to foreign international companies is exactly the kind of program that is needed to accelerate New York’s recovery from the current economic downturn,” said Kathryn Wylde, CEO of the Partnership for New York City.

Mayor Michael Bloomberg (Ind.) has from the beginning of his tenure stressed the need to diversify business not only to all five boroughs, but also by industry sector to prevent the city from being too dependent on the financial service industry.

Bloomberg’s plan has called for an expansion of the biotechnology, media and fashion industries, among other talent-driven sectors. The city is working to drive knowledge-based businesses to New York in a joint effort with the Empire State Development Corporation, the state’s economic development agency, which operates 12 overseas offices in countries like China, Israel, Brazil and South Africa.

“When international companies want to expand, they think of New York City first,” said Ann Li, vice president for business development for the New York City Economic Development Corporation. “However, that doesn’t mean that it’s easy. Companies face many questions when they first start operations here, ranging from real estate to tax.”

To confront this challenge, Gunduz is in the process of creating a list of business specialists in New York City with accounting, legal and financial services to match the needs of foreign companies and foreign countries that require a little assistance to ease the transition.

The Chamber recently presented the new internationally minded services to 65 trade commissioners from around the globe. Ronald Paltrowitz, an attorney who represents small businesses and is general counsel of the Chamber, attended the event.

“The major concern is the present economy and whether they can raise finances here,” said Paltrowitz, “but they also have questions about tax on consumables and whether businesses should set up on their own or begin as a joint venture.”

The global business initiative has already paid a dividend for Paltrowitz, who obtained a new client from Dubai who had requested assistance with legal matters. His new client, a Saudi businessman, is starting a business to purchase used autos at auctions and needed a legal connection.

A quarter of the Chamber’s 1,400 members do business internationally, including large companies such as Citibank, Chase and HSBC. Nearly three-fourths of the six million members’ employees are international. While Gunduz said the first priority is driving business to the members, she stressed that the overall goal was economic development. 

“In Europe, you have to join a chamber once you become incorporated and the chamber provides very specific purposes,” said Gunduz “We are trying to move in that direction.”