Report: Mass. incubators create thousands of jobs yet still face funding challenges
Sam Doran I State House News Service
Jay Ash, Massachusetts housing and economic development secretary
Incubators and accelerators designed to aid entrepreneurs have helped create tens of thousands of jobs in Massachusetts and fueled billions of dollars of investment, according to a new industry report that urged lawmakers to invest in additional supports.
The Massachusetts Competitive Partnership surveyed 25 incubators and accelerators across the state about the role played by so-called entrepreneurial support organizations, or ESOs, calling them "a cornerstone of the Commonwealth's innovation economy."
Those organizations currently support more than 2,800 entrepreneurs and businesses, and companies backed by ESOs have created about 91,000 jobs, the report said. A sample of alumni that used incubators and accelerators collectively raised more than $92 billion in investment, authors said.
However, the report also found that many incubators and accelerators face limited access to capital and a "fragmented support system," impeding their growth.
"Engagement with ESOs reveals the significant successes they have nurtured, but also the significant challenges they face going forward," the report said. "Capital is difficult to secure; other states are outcompeting Massachusetts in attracting entrepreneurs; and the state’s innovation ecosystem can be challenging to navigate."
Business leaders at the Mass. Competitive Partnership rolled out the report with a suite of recommendations for Beacon Hill, such as creating a task force to expand entrepreneurship programs in higher education and launching a program to invest $200 million in incubators and accelerators across Massachusetts.
"Massachusetts must take decisive steps to maintain its leadership in entrepreneurship and innovation, especially as competition intensifies both nationally and globally," said MACP CEO Jay Ash, a former state economic development secretary. "Our goal is to ensure the state remains a hub for startups and emerging businesses by strengthening its entrepreneurial ecosystem, supporting ESOs, expanding access to funding, and eliminating barriers to success."
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