A quick and short missive; thoughts on the gap that will be present when a valuable resource goes away.
The Startup Zone will cease to exist as an entity by May 31st, largely, I was told, as a result of a study that was commissioned and delivered recently by MRSB. It isn’t a great read, but the report currently can be found here.
The report relies primarily on research done elsewhere and would have been better served by some original research on the needs of those who have chosen to start companies on the Island.
There was a short discussion on the Zone’s Slack about the report, to which I replied:
Whenever I see the word “innovative” in a government-funded study, I get dizzy from the massive eye roll.
It would appear that they are abandoning support for a whole swath of small businesses for a smaller subset of high-profile companies that can give visible evidence of success. A small handful of newsworthy companies does not equal a healthy small-medium business environment and risks overlooking the diverse needs of the broader entrepreneurial community.
We will certainly miss the local support provided by the Startup Zone, which has been pivotal to our success, but we aren’t particularly interested in being a part of the “next level in the startup continuum,” whatever that means.
I deleted it immediately after because at this stage a short rant has little value.
Coming from the environment I worked in in China and Taiwan, I found the StartUp Zone to be a breath of fresh air. It was a valuable if flawed resource, the flaws of which were outlined in the report itself (it comes down to the differences between a startup and a small business).
We were often at odds with their stated mission. In that first year, when we were working on a different product, we were constantly asked what kind of valuation we were seeking, where we would build our headquarters, and how many people were we looking to hire. The whole VC culture that is trying to be created in Atlantic Canada turned me off. I just wanted to build something I enjoyed building and feed my family. I didn’t want to take on Facebook.
Others were the same. There were consultants, small design shops, coffee roasters, and the occasional sass company looking to “change the world.” I have doubts that a small place like PEI should be chasing the next big thing, but that’s the kind of decision politicians make. A dog trainer or a fitness instructor fuels the economy right away, and supporting small businesses like that creates jobs immediately. This isn’t sexy, though, and I suspect most politicians would rather the photo opportunity that those rare successful startups can provide.
The Startup Zone kept us local and introduced us to people who have helped us on our journey to have a viable small business. We have grown from 0 to the ability to hire. We have invested in the community—we bought a house and a car, and our kids will likely return when they are our age.
I have no idea what will replace the StartUp Zone, and I was told the political leadership has no idea, either.
Here are some potential problems with closing the space.
Impact on community and networking: One key benefit of spaces like The Startup Zone is the community and networking opportunities they provide. They foster collaborations, mentorship relationships, and peer learning. Removing this space could diminish these benefits, making it harder for entrepreneurs to connect and support each other. If you have a question, who do you call? The Startup Zone has served as a great first point of contact, a central hub for entrepreneurs.
Disruption of ongoing success stories: The report highlights success stories and positive outcomes experienced by firms associated with The Startup Zone. Closing the facility could disrupt the trajectory of companies currently benefiting from its resources and support.
The challenge in replicating support elsewhere: If the services and support The Startup Zone provides are not adequately replicated elsewhere in the ecosystem, there could be a significant gap in the support available to companies. Creating a new entity or transferring services could involve substantial time and resources and may not fully replicate the ecosystem’s needs. I don’t think they actually know what these needs are. If you haven’t interviewed the community, how would you know?
One of the questions we have been discussing is why our business is located in Prince Edward Island or Canada when all our activity is elsewhere. What are the advantages of being here? The Startup Zone was one; it directed us to local resources, but with that gone, our search for answers will lead us elsewhere. Why not do the same with the whole company? Will others think the same?