MassMarket Legislation (Draft)

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MassMarket is defined as A.) An integration of resources from the state’s Executive Office of Housing and Economic Development (EOHED), Executive Office of Labor and Workforce Development (EOLWD) and the Executive Office of Education (EOE) and B.) Business incubator. The purpose of MassMarket is to create a comprehensive, collaborative and integrated state strategy for small business, entrepreneurship and business incubation to address the needs and challenges across the state’s midsize urban centers commonly referred to as Gateway Cities and surrounding communities. MassMarket is the collection of state resources for the incubator network. MassMarket will be established via regional partnerships with Workforce Investment Boards, Community Colleges, State Universities, Massachusetts Office of Business Development (MOBD) and a private enterprise for the purpose of management and operation of the MassMarket incubator network.

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MassMarket Legislation (Draft)

  1. 1. 1ConfidentialTITLE OF BILL:An act to amend House Bill “()” in relation to establishing a Massachusetts incubator network hereafterreferred to as “MassMarket”.DEFINITIONS:The definitions in this section apply throughout this chapter unless the context clearly requiresotherwise.(1) "Business incubator" means a facility or entity that offers:(a) Space for start-up and expanding firms and/or;(b) Shared use of equipment and work areas and/or;(c) Daily management support services essential to high-quality commercial operations; and/or(d) Technical assistance.PURPOSE:MassMarket is defined as A.) An integration of resources from the state’s Executive Office of Housingand Economic Development (EOHED), Executive Office of Labor and Workforce Development (EOLWD)and the Executive Office of Education (EOE) and B.) Business incubator. The purpose of MassMarket is tocreate a comprehensive, collaborative and integrated state strategy for small business,entrepreneurship and business incubation to address the needs and challenges across the state’smidsize urban centers commonly referred to as Gateway Cities and surrounding communities.MassMarket is the collection of state resources for the incubator network. MassMarket will beestablished via regional partnerships with Workforce Investment Boards, Community Colleges, StateUniversities, Massachusetts Office of Business Development (MOBD) and a private enterprise for thepurpose of management and operation of the MassMarketincubator network.JUSTIFICATION:Business incubators can play an integral role in the Massachusettssinnovation economy by providingstart-up and early-stage companieswith the resources and technical assistance to become viable,independent and self-sustaining. Incubators provide peer-to-peer learning andfacilitate collaborativebusiness development through leveraging ofresources, client networking and implementing industrybest practices. While many Massachusetts incubators receive start-up funding throughfederal grants,local community assistance and other state programs,there are currently no programs that provideoperating support thatincubators can depend on from year to year to develop operationalcapability aswell as provide necessary continuity in terms ofbusiness development services for companies that aretenants of theincubator. Furthermore, MassMarket serves as a Gateway City strategy for economicrevitalization in distressed communities by leveraging state resources to be implemented and executedat a regional level in partnerships with regional assets – (eg. WIB’s and Community Colleges) that will
  2. 2. 2Confidentialproduce outcomes impacting communities via workforce development, job creation, economydiversification and commercialize innovations.LEGISLATIVE INTENT:The legislature hereby recognizes thatsupporting a statewide network of incubators – “MassMarket”serves as a Gateway City strategy for economic revitalization in distressed communities by leveragingstate resources from EOHED, EOLWD and EOE is a cost effective approach to supporting start-up andearly stage companies transition to sustainable business enterprises that will create local and regionaleconomic diversification, job creation and the retention of the state’s resources of intellectual capital.APPROPRIATION REQUEST: (PILOT PROGRAM)$75,000 for use for developing the feasibility study – (one time cost).$3M or an existing facility or less for construction, renovation and equipment – (onetime cost).$200,000 or less for operational support of the incubator – (per year for three years).APPROPRIATION REQUEST: (INCUBATOR)$75,000 or less for developing the feasibility study per incubator.$3M or less for construction, renovation, long-term leases and equipment perincubator.$200,000 or less for operational support per incubator annually.LEGISLATIVE RECOMMENDATIONS:I. A pilot program will be developed in the Southeastern part of Massachusetts utilizing a strategicpartnership with Bridgewater State University, Brockton Area Workforce Investment Board anda private enterprise for the purpose of management and operation of the incubator. The pilotprogram will operate for a three year period before a strategic roll out of MassMarket.The pilot program funds will be used for:Feasibility study and plansImplementation of those studies and plans by providing programmatic and technicalassistanceConstruction, renovation and equipmentSupport of operations of the pilot incubator program for a three year periodII. Integrate a Youth Entrepreneurship component or unit within the incubator to focus on YouthEntrepreneurship activities.III. Establish a record of or plan to conform to best practices including clear policies for businessentry and graduation.IV. Establish a record of or plan to conform to best practices and principles of publicly supportedincubators.
  3. 3. 3ConfidentialV. Develop a comprehensive suite of entrepreneurial mentoring practices including but not limitedto advising, coaching, planning, technical assistance, capacity building, education andconnecting to funding sources.VI. Develop the capacity to secure substantial private and other non-state governmental fundingfor the incubator.VII. Demonstrate the ability and willingness to cooperate with other local, regional and statewideeconomic development organizations, business support networks and venture and angel capitalfunding sources.VIII. Establish such procedure as it deems appropriate for the evaluation of tenant eligibilityrequirements for incubator entry and graduation.IX. Establish a review panel composed of statewide recognized experts in business incubation inaddition to mandatory representation from EOHED, EOLWD, EOE, regional WIB and communitycollege.X. Establish an advisory board for each incubator that will consist of a State Representative andState Senator from the incubator district and local and regional advocates and stakeholders ineconomic, workforce, education and community development to evaluate public investments inbusiness incubators, ensure that the funded programs are implementing best practices knownto contribute to program and client success, and identify new industry trends that could affectprogram performance.XI. Where applicable and cost effective utilize unused state property under the management of theDivision of Capital Asset Management (DCAM) for lease or purchase for the renovation of theincubator in the designated area of the Gateway City for government efficiency.XII. To the Commissioner a report cataloging its revenue and expenses, the number of private sectorfirms that have leased space in the incubator, the number of companies that have graduatedfrom an incubator, whether such graduating companies have remained in Massachusetts andbest estimates as to the number of full time equivalent positions created by incubatorcompanies and their successors for a period of five years upon graduation. The review panelshall evaluate such incubator’s performance according to the above listed criteria and shallpresent its findings to the Commissioner who shall make a binding recommendation whethersuch incubator shall retain its status as a member of MassMarket.XIII. Maintain a management information system and collect statistics and other informationnecessary for ongoing program evaluation, thus improving a program’s effectiveness andallowing it to evolve with the needs of the clients.XIV. Establish an ROI requirement from companies that graduate from MassMarket to provide “X”percentage in annual revenues back to Massachusetts or to buy out said percentage with areduced rate flat fee (TBD).COSPONSORS:

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