A growing number of municipalities are developing business incubators to nurture growth of young companies and startups in key industries. These incubators not only benefit entrepreneurs but also help spur job creation and economic stimulation.
NYU
New York University is home to several business incubators, including its Varick Street location which was initially launched in partnership with the New York City Economic Development Corporation. The city-sponsored incubator has reported significant growth and success since first launching in 2009, expanding to three locations. The establishment is now responsible for a combined economic impact of $352.4 million while creating 1,256 new jobs.
New York University’s business incubators are designed to provide small companies and startups with space and resources to develop and test products to increase odds of success. The initiatives supported by the incubators align with the goals of municipalities nationwide such as clean technology and clean energy.
In 2014, NYU’s incubators made significant contributions to the economy:
- 138 companies generated $85.7 million in revenue
- Smart Vision Labs earned $1 million in funding from the Verizon Powerful Answers Award contest
- Two companies raised capital through crowdfunding campaigns
- Two companies won National Science Foundation Grants from the Small Business Innovation Research Program
This spring, NYU is opening an incubator specifically for the development of clean technology innovations. The Urban Future Lab will concentrate local, city and state resources through grants from the New York Economic Development Corporation.
Roxbury Innovation
The city of Boston is teaming up with the Massachusetts Technology Collaborative to fund the Roxbury Innovation Center, a business incubator in Dudley Square. The city and MTC are providing $150,000 in funding to support the incubator and provides resources to entrepreneurs and startup companies.
The goal of the incubator is to attract innovative thinkers and young companies on the cutting edge of technology to develop their ideas in a nurturing environment. Successful businesses will then leverage their innovations to increase access to innovation and opportunities in the local economy.
Starter Studio
In Orlando, Florida, a program has launched that connects young professionals and startups with industry mentors to help them develop strategies for business development and growth. Because these mentors have started and maintained successful businesses, they can provide first-hand insight on best practices for business development, such as acquisition of funding.
Starter Studio accepts a select number of participants into the three-month program that features:
- Educational events relevant to startup needs taught by educators and successful entrepreneurs
- Founder Talks where mentors tell their stories
- Investor Talks where investors offer tips for funding acquisition
- Access to working space
- Free legal and financial assistance
- Networking opportunities
- Showcase events where startups can demonstrate or pitch ideas to the public and investors
Industries represented at Starter Studio range from education, legal tech and merchant services.
Techie Locales
Outside of incubators, many municipalities are working to attract growth industry companies and professionals by increasing access to resources and vital infrastructure. In the tech community, for example, SmartAsset.com recently named Omaha the best city for professionals due to high wages, low cost of living and a high employment rate. Omaha was followed closely by Colorado Springs, Colorado; Huntsville, Alabama; Dallas, Texas; and Springfield, Illinois.
Enticing the Tech
Gov1 has followed a variety of initiatives municipalities have launched to attract startups including investment in innovation districts.