Betting on Incubators to Create Jobs

According to the National Business Incubation Association, business incubation is a support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services.

The Youngstown Business Incubator (YBI) helps accelerate emerging businesses by providing an array of invaluable services. Facilities, equipment, resource networks, entrepreneurial counseling, networking opportunities - all these are critical to successful business development. YBI helps technology entrepreneurs by:

• Assisting with commercialization process
• Counseling on marketing strategies
• Identifying funding resources
• Facilitating networking opportunities
• Providing access to physical infrastructure
• Seeking out collaborative opportunities

This month's edition of Bloomberg Businessweek has an interesting article about the impact of business incubators on job creation. "Betting on Incubators to Create Jobs" follows BizVeo, a YBI portfolio company, from its beginnings in a home office to a growing startup company.

Incubators are "without a doubt the best thing someone could ask for," shared Chief Executive Tony DeAscentis with Bloomberg Businessweek. He also used YBI to launch, with partners, his first venture, Turning Technologies, now a 200-employee, $40 million maker of software that conducts real-time polling of audiences while they're watching a presentation.

Click here to read the full story from Bloomberg Businessweek.

Incubating Successful Business in Appalachia

For decades, Youngstown, Ohio struggled to reinvent itself. Over the last few years, though, something special has happened here. Several strong-minded business spirits are putting their heads together to reinvent Youngstown as a technology center.

The Youngstown Business Incubator (YBI), led by Jim Cossler, is one such organization that is taking the city by storm. YBI offers budding tech companies consulting services and facilities support, such as office space and bandwidth for free or at a deferred cost.

Ultimately, Jim is looking to build a cluster of software companies in Youngstown. He envisions transforming the city into a low-cost alternative to Silicon Valley and other high-cost tech hotbeds. Being located in the resource-rich region of Appalachia Ohio increases the odds that these start-ups will be profitable.

Experts agree there are four ideal location criteria for entrepreneurial start-ups: access to business capital and support services, access to supply chain and markets, access to knowledge and labor, and access to a balanced life. All of these resources are abundant in Enterprise Appalachia, and YBI is just one shining example of how entrepreneurs can benefit from having ready access to these resources.

Recently, I spoke with Jim about how several of his organization’s start-ups have been successful largely as a result of being located in Ohio’s Enterprise Appalachia Region. Click here to read the full story.

Advanced Energy Business Incubator to Expand Ohio’s Technological Strengths

Millions in state and federal funding has recently been secured to launch a green and advanced energy business incubator in Warren, Ohio. The purpose of the incubator is to help foster the development of technology businesses in Ohio’s Mahoning Valley. Essentially, the businesses spawned from the incubator will produce parts for geothermal, solar and nuclear energy plants, increasing the number of tech jobs in the state.

The Northeast Ohio Technology Coalition (Nortech) will be lending its expertise on the incubator project. Rebecca Bagley, president and CEO of Cleveland-based Nortech, said that over the next 10 months Nortech will help to identify the site for the incubator. Nortech will also help the incubator's 26-person steering committee develop an operational plan.

So far, nearly $3 million has been secured for the project. About $2.2 million in federal funds will be used to help equip the site. Another $500,000 in state funds has been earmarked to purchase the incubator building. Operating capital is expected to come from both federal and state dollars, including Ohio Third Frontier, a bipartisan commitment to expand Ohio's technology business.

Click here to learn more about the advanced energy business incubator in Warren, Ohio.

Youngstown, Ohio Named One of the 10 Best U.S. Cities for Entrepreneurs

In a recent article on the ten most “start-up friendly” cities in the U.S., Entrepreneur Magazine names Orlando, Portland, Atlanta – and Youngstown, Ohio. In other words, Youngstown is considered to have one of the best entrepreneurial spirits in the country. In the latter part of the 20th century, this was not exactly the case. Business in Youngstown had hit several bumps in the road after a number of layoffs from area manufacturing plants. However, over the last decade, something special happened in this Northeast Ohio city. It is now filled with an openness and energy that permeates the whole culture.

Proof of this energy is Mike Broderick’s Youngstown-based Turning Technologies, which is one of the seven fastest growing tech companies in the country. The 134-employee Turning Technologies, which Mike launched in 2001, makes audience response systems used in college lectures, corporate events and even game shows. “I’ve found Youngstown to be a brilliant place for a startup,” says Mike. He attributes the pace at which the company grew to its low cost location. Youngstown’s lower-than-average rent and taxes mean dollars stretch further than they would in Silicon Valley.

Another example of Youngstown’s entrepreneurial energy is Jim Cossler, owner of Youngstown Business Incubator, which offers mentors to fledgling B2B software companies. The company also provides networking and services like office space and bandwidth for free or at a deferred cost. The incubator concept was revolutionary enough to help ignite a renaissance in Youngstown. Cossler says, “The new generation is envisioning things we wouldn’t have talked about 10 years ago.” He points to the work of the area’s dynamic congressman and energetic young mayor as examples. Cossler says, “There’s a radical transformation going on here right now.”

Click here to read the full article on from Entrepreneur Magazine.

Ohio Success Story: Technology Companies Poised for Success

In the aftermath of 9/11, Mike Broderick and two colleagues started Turning Technologies, LLC from scratch with the assistance of the Youngstown Business Incubator, one of several Ohio groups that help accelerate the startup and growth of technology-based businesses. In Ohio’s fertile business environment, Turning Technologies grew quickly and today has become known as the premier company in the industry.

Turning Technologies develops interactive response systems utilizing the latest software and hardware tools available and transforms them into state-of-the-art applications for audience response. Led by Mike Broderick, president and CEO, Turning Technologies was named the fastest growing privately held software company in the country and the 18th fastest growing of all companies by Inc. Magazine in 2007.

Click here for the complete interview with Mike and to find out more about Turning Technologies’ success in Ohio.

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