Establishing even the most basic foundation for a new company or startup is a challenge that many businesses encounter early in their development. New York State’s certified business incubators offer a range of support — from locating workspaces to identifying sources of capital — to help get new and emerging businesses off the ground and put them on the path to success.
Here’s a quick guide to New York State’s business incubators — what they are, where to find them, and how they help to establish startups and fledgling businesses.
What is an Incubator?
In the broadest of definitions, a business incubator (or “accelerator” as they’re also commonly known) is an organization — often sponsored by private companies or institutions like colleges and universities — whose primary purpose is driving and directing growth of early-stage companies. Incubators offer an array of business support services and resources, from finding physical workspaces and helping build capital to initializing strategy and planning and introductions to local businesses and networks.
“An incubator should be low-cost space where startups can take the next steps from ideation and proof of concept, to eventually building something customers will pay for,” explains Matt Draper, Executive Director of the Shipley Center for Innovation at Clarkson University in Potsdam in the North Country Region. “It should be a place where they can learn how to build and manage a business to scale after they have proven that they have something of value for the market.”
On average, companies can spend up to two years working alongside a business incubator, taking advantage of low-cost office space while gaining invaluable advice and expertise on best practices. In fact, many are now offering hyper-specialized services to assist emerging industries and next-gen business sectors.
One example of that specialization is the Center for Agricultural Development and Entrepreneurship (CADE) in Oneonta in the Mohawk Valley, which specializes in agricultural technical assistance, business planning and other relevant issues for regional farmers, including planning for wholesale distribution, equipment sharing and brand identity and advertising — services that helped build upstart brands like Lucky Dog Organic and other food and agri-businesses.
In the Mid-Hudson Region, The Accelerator, located in New Windsor, has provided Unshattered — an organization that manufactures handbags out of used clothing to support economic independence for women fighting against addiction — with access to workspace, manufacturing equipment and traditional facility resources.
Business leaders like Chuck Green, CEO of Rome-based Assured Information Security Inc. (AIS), who praises the early support provided by Utica’s thINCubator to his company, recommends connecting with a local incubator as a foundational first step when establishing a new business in the state.
“In recent years, the Mohawk Valley region has put a lot of emphasis on supporting start-ups and relocated businesses, and the work that thINCubator provided, and continues to provide, has been crucial with infrastructure and networking support,” Green explains.
How to find the right Incubator for your business.
A good place to start the search for the right incubator is this list of Division of Science, Technology and Innovation (NYSTAR) New York State Certified Business Incubators and Innovation Hot Spots, which includes links to incubators covering a range of industries and services throughout the state. Local economic development agencies can also provide answers for businesses looking for the right incubator.
Incubators often require that business plans be submitted for their careful review and screening — prerequisites necessary to ensure the right fit, both from a success metrics and an ethical standpoint..
“We live in the 21st century where we can build almost anything, so the question isn't ‘could we’ but rather ‘should we,” explains Draper. “We use this pillow test on all projects during initial review to make sure the technology is a fit for our center, the university and the population we serve.” If a project is turned down, “it's not a judgment, just not a fit for our model.”
What’s next for Incubators and Innovation Hot Spots?
Given the ever-changing landscape of business and evolving industries, incubators have had to adapt quickly in order to continue offering services that are geared toward new technologies and services.
“Our vision for the Shipley Center is to never become complacent, and heed our own words: to constantly iterate and learn to better serve our clients,” says Draper. “We see our model expanding to include additional locations in the region and are developing a focus on high-school aged students to better leverage the human capital in our region.”
One way in which incubators are keeping up with client demand is building networks — or “hub-and-spoke” models — that address a variety of industries as well as providing services for entrepreneurs who may want to set up shop in a more rural locale. By establishing these broad networks — both in terms of locale and offerings — incubators hope to build a backbone of innovation statewide, while continuing to expand upon the foundational partnerships year over year.
To find out if an incubator is right for you or to get the process started, contact NYSTAR for more information at [email protected] or (518) 292-5700.