Tag: small business

Biotechs and Robotics Pay Off for Massachusetts

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A law passed in 2008 that provides subsidies to biotech and robotics companies in Massachusetts is helping to grow these industries in the commonwealth. Some say the biotech and robotics industries in MA are beginning to rival those of Tokyo and California, which have long been considered the global leaders in this type of business.

Massachusetts Received One Third of Seed Stage Funding

One of the reasons for this growth in the commonwealth is the Massachusetts Life Sciences Act of 2008. This legislation authorized $1 billion in investments, grants, loans, and tax breaks over the next decade to be given to local biotech companies. The government is following through with their promise; they have presented over $761 million in seed-stage funding for these businesses between 2009 and 2013. This has allowed nine of the ten largest drug manufacturing companies to set up research and development laboratories in Massachusetts.

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Foundry robotics.

Homegrown vs. Tax Incentives—Paying Twofold

One of pivotal stipulation of the MA incentive package is that it focuses on local businesses who have already been working in the industry. Legislation hoped to unlock the commercial potential of research already being conducted at state universities including Harvard, MIT, and the University of Massachusetts. By attracting smaller companies on the cutting edge of research, Massachusetts has found that large companies tend to migrate to states where those small companies are thriving.

Army collaborates with robotics.

Massachusetts Grows Connections—And Keeps Them

Attracting smaller companies that draw the interest of larger companies has helped Massachusetts become a leader in the biotech and robotics industry. The new financial incentives attract companies and talent to the commonwealth. As the biotech and robotics industries continue to grow, investors have become more motivated to provide additional seed money for growing companies. Larger companies have spent more time mentoring startup companies after seeing their industry swell; the success of large and small companies comes as a benefit to the state.

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Atlas, a humanoid robot from Boston Dynamics.

The Future of Robotics in New England

Since 2008, at least twenty robotics companies have sprouted up in Massachusetts; venture capital in the robotics industry has also grown to more than $60 million, up from $20 million in 2008. Technology giants like Amazon and Google have provided millions of dollars in startup funds for robotic-focused companies through acquisitions and other forms of investment.

Unfortunately, trends have shown that smaller companies often sell to larger firms before they can grow to a significant size. This has prevented Massachusetts from becoming a true powerhouse in robotics. The international robotics industry saw $15 billion in 2010; it is expected to see $65 billion by 2025. Experts say that special focus will be given to robotics that provide everyday utility, including those that help clean and maintain homes.

Massachusetts has implemented incentives that have helped the state grow the robotics and biotech industries, but many experts say there is still significant room for growth.

Worcester Named Most Business-Friendly City in Massachusetts

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Massachusetts Small Businesses Make a Remarkable Turnaround in Just a Year

Business confidence in Massachusetts cities continues to grow . . . and you may not believe which city is at the top of the list. A recent survey of small business owners in New England ranked Worcester, Massachusetts, as the most business-friendly city in the state. When pinned against all cities in New England, Worcester was second only to Manchester, New Hampshire.

Worcester’s rise above regional hubs such as Boston and Providence caps a remarkable turnaround for the city. Business leaders agree that Worcester’s business climate is much-improved—the city received an overall grade of “B-” this year despite a lowly grade of “F” last year.

Worcester Official Sign Massachusetts

Worcester, MA Is Positioned to Expand Across All Business Sectors

Worcester and other mid-sized cities serve as a complement to Boston’s hub of finance, education, government, and professional services. They provide a hospitable climate for smaller businesses and manufacturers that may not be able to afford or be recognized in a larger city. Steve Rothschild, considered a small-business mogul in Worcester for his work with Applied Interactive, Bulbs.com, and Furniture.com, says that “Worcester is a great place to run a business because there is a well-educated workforce, an easy commute for employees, and low-cost commercial real estate.”

Worcester is particularly well-positioned because it has the history and infrastructure of a manufacturing hub but also a large service economy. The city boasts nine institutions of higher education and five major hospitals. Unlike many mid-sized cities that have struggled with population decline, Worcester has had steady population growth for the past three decades. Per capita income and education levels are on par with the state average. The combination of a well-rounded economy and an educated and skilled workforce allows Worcester to expand in many different sectors.

Downtown Worcester Ranked Business Friendliness MA

Improvement in Business Confidence “Grade” in Worcester, MA, Mirrors Massachusetts State Performance

The jump in Worcester’s business climate is consistent with the state’s improving economic indicators. The unemployment rate of 4.7% is significantly lower than the national average of 5.3%. For ten straight months, Massachusetts has increased its number of available jobs; 46,200 were added in 2015 so far—7,200 of which were added in July alone. Although most new jobs were in the education and health sectors, the state also added 1,400 manufacturing jobs in July. The Massachusetts Manufacturing Extension Partnership, based in Worcester, noted that much of the new manufacturing jobs came from small businesses with less than 50 employees. A number of jobs have also come from the booming craft beer industry in Massachusetts.

Business owners can be fickle when it comes to expressing approval of any business climate. The latest survey results, however, show that Worcester is headed in the right direction. If its trajectory continues, it will benefit not only the local economy, but the state economy as well.

Have you started a business in Massachusetts? Do you agree with the Worcester’s new grade of B-?

One-Year Extension for Massachusetts to Comply with Obamacare

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Massachusetts has been given an additional year to comply with the Affordable Care Act, following a trend of deadline extensions. Initially granted a one-year extension in 2013, they have now been granted another year to get the program aligned with federally mandated standards. Governor Baker has asked for an “indefinite extension” citing that the reduction of qualifiers used to determine premiums could cause a ripple effect of “instability” in the insurance marketplace. The new deadline allows them until January of 2018 to fully comply with ACA requirements.

Currently, Massachusetts Health Connector uses nine identifiers to determine health premiums, under Obamacare, that number would need to be reduced to four—only age, family size, geographic area, and tobacco use would be considered. The extension allows insurance companies to use their full range of factors—such as industry, group size, and participation rate—until 2017 when determining health care premiums. Another point of contention is the definition of small businesses under the ACA requirements. Governor Baker has asked that the definition of a small business in Massachusetts remains 50 employees rather than the ACA specified 100 employees.

The hope is that these allowances will help prevent small business from falling prey to huge rate hikes in insurance and the associated risk of having to downsize or even close shop should the premiums become too large for a small business to afford. Administrators from both sides have continued to negotiate the specifics of the requirements over the last few weeks.
This is just the latest chapter in the story of MassHealth’s continued difficulties complying to the federal ACA requirements and regulations. Just last month it was reported that the US attorney served a subpoena in January of 2015 for the Massachusetts Health Connector records dating back to 2010 in an attempt to figure out the difficulties MassHealth has encountered when trying to meet the ACA regulations. Massachusetts’ continued trouble complying with the ACA is an interesting puzzle, given that the ACA was modeled in large part after Massachusetts law, Chapter 58: An act Providing Access to Affordable, Quality, Accountable Health Care. This leaves one to wonder whether there are true difficulties with and concerns about the ACA regulations or whether the changing winds of political rhetoric and special interests are at the source of these current difficulties.

Massachusetts Contract Manufacturer Helps Urban Garden Get Off the Ground

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At the heart of every great business, from two-man start-ups in the garage to Fortune 500 giants, is one common factor: a great idea. But for many start-ups, that great idea may be all they have. While small businesses provide the opportunity and flexibility for innovation, many of these organizations lack the resources to move beyond the prototype stages. Too many brilliant ideas have been waylaid by simple logistical errors that could be avoided through partnership with an established contract manufacturer—especially one that is well versed in the needs of small businesses.

It was at this crucial juncture, moving from prototype and proposal to market-ready production, that the environmentally-focused Massachusetts start-up Freight Farms stepped up to the plate and hit a home run. By partnering with an established manufacturer like Columbia Tech they were granted access to world class facilities and years of experience—something most small businesses only gain over years of trial and error.

Freight FarmsThe Freight Farms model is simple: a repurposed 40-ft freight container is converted into a self-contained, modular environment for growing fresh vegetables in any locale, regardless of climate or available resources. On paper this idea might even look easy, but the challenge the project developers faced was daunting. How would they build containers at a rate that satisfied demand and remained profitable? How would the ‘farm-in-a-box’ be transported to its final destination?

While the project founders knew these concerns existed, they were focused on the big picture of creating a sustainable food source that could eventually reduce or eliminate world hunger. An ambitious task, but with these intimidating goals in mind, they turned to Columbia Tech’s expert teams, who helped them standardize production at maximum efficiency. Utilizing a contract manufacturer helped Freight Farms sidestep the delays that accompany building a new production facility, allowing them to move rapidly from concept, to prototype, to market.  By selecting a partner that had a strong background in container-based manufacturing, the Freight Farms team could keep their focus on the product and rely on the experience of Columbia Tech to guide them through the sometimes arduous process of turning their great idea into reality.