Celebrating and Supporting Small Businesses

It’s National Small Business Week!

More than 45% of U.S. employees work at small businesses according to the Small Business Administration, making them a vital part of our national and local economy. With as important as they are, it’s imperative to recognize their impact and support their growth.

CenterState CEO offers an array of supports and services to try and help small business owners realize their goals and prosper in the community. This includes everything from community investment work through CenterState Up Start to operating the world's largest accelerator for uncrewed systems with GENIUS NY. 

On this episode of Talk CNY, presented by NBT Bank, CenterState CEO’s Senior Busines Advisor Brandon Mastrangelo dives deeper into the role of small business in the community and how we can help them succeed. 

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Host: Katie Zilcosky LinkedIn

Transcript

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This is Talk CNY, a semi-monthly podcast by CenterState CEO. We're an independent nonprofit committed to creating inclusive, equitable, and sustainable economic growth in Central New York. Join us as we meet the people and explore the projects driving the regional economy forward. This is Talk CNY, presented by NBT Bank. I'm Katie Zilcosky, director of communications at CenterState CEO, and your host for Talk CNY. More than 45% of US employees work for a small business, which makes them a vital part of both the national and local economies. With as important as they are, it's important for all of us to celebrate and support them along the way. CenterState CEO offers a variety of supports to small businesses in our region, from our community investment work through CenterState Upstart to running the world's largest accelerator for uncrewed systems with GENIUS NY. On this episode of Talk CNY, presented by NBT Bank, we take a deeper dive into how small businesses impact our community and what we're doing for them with CenterState CEO's Senior Business Advisor Brandon Mastrangelo. Brandon, thank you so much for joining us here. Welcome to the podcast. Thank you, Katie. I'm happy to be here. We are in the middle of Small Business Week. National Small Business Week as deemed by the Small Business Administration. So it's very exciting. We're happy to celebrate all of our small businesses. And you as CenterState CEO's senior business advisor, you work very closely with our small business community. You know them, you're helping them out. Tell me, why is it so important that we celebrate them during this time and maybe something that we don't always think about when we think about entrepreneurship journeys? Yeah, absolutely. I think it's pretty well known that small businesses drive our economy, and that's a huge reason to decide how you spend your dollars, where your purchasing power has influence. There are a lot of statistics around every dollar spent in a local community. The percentage that stays there is much higher than from larger firms or global companies. So I think most people understand that. But to continue to be able to show up on a regular basis for our small business community is really, really important. Just constantly being aware of when you have needs, when you're looking for services, how can we support the local economy? So I think that's one reason why it's nice to have a week that's dedicated to celebrating it. But hopefully, we slowly, more and more of us adopt the mindset that this is how we should be operating on a year-round basis is to show up, build relationships, let them know these small business owners know that you value what they do. That goes a long ways to validate what they're doing, give them the inspiration and the energy to continue to show up day in and day out to provide the service or product that they're putting out there into the community. And the other thing that stands out for me on why it's important to celebrate small businesses is because small businesses create of our region and communities. There used to be a time where food was very regional. You could only get certain kinds of food if you traveled and had the chance to kind of understand the culture and the history and why they cook the way they do. Our region, clothing is different than in other regions. We have four seasons and we have a very long and harsh winter. And so there's just a lot of uniqueness that small business owners bring to the region and show our uniqueness as a region. I think that's another reason to celebrate it. When we stop celebrating that we lose that identity, right? We adopt larger global companies that come in and they have a very cookie-cutter approach to what their offering is. And so all of a sudden if I'm traveling to Louisiana or to New England, sometimes am I really in a different place? I'm running across a Walmart. I'm running across a Target. I'm running across all these franchise restaurants, and we lose that ability to understand what is unique about that region or area. And so when we show up and celebrate small businesses, we're also celebrating the uniqueness of our region and helping them craft what that is and highlight what it is. And I just think there's a lot of learning that can happen from that, and I think we're a better off region for that. Yeah, absolutely. Yeah. What is something that you wish people knew about Central New York entrepreneurs and what it's like to start and grow a business? So Katie, there are a few things that I think are important to know about entrepreneurship that don't necessarily pertain just to Central New York entrepreneurs. And then there's one thing that I will share that I think is specific to Central New York. So the first two that I want to highlight is one, entrepreneurship is extremely lonely and isolating. This is something that we need to talk more about. I think mental health around entrepreneurship isn't discussed enough. And as we build communities specifically in our new Inspire innovation hub, it's important to create these spaces where people can have honest conversations around what it looks like to start and grow a business. That is just one thing to make sure is clear and known. And so one, please know that if you know an entrepreneur in your small businesses in your daily outings and how you shop and spend your dollars, then check in with people, ask how they're doing, be really curious and inquisitive and let them know that you think they're doing a great job and that everything that they're doing, all the hard work matters to them and is paying off. In terms of Central New York entrepreneurs, I think one thing that is unique to our region and is a huge opportunity for people who are looking to start a business is that your business is going to be successful early on, based on your professional and personal networks. And Syracuse being a relatively smaller-sized metropolitan city, you can quickly put yourself into this community, into this ecosystem and use your network to get things going. So you're usually only one or two connections away from who you want to be talking to, whether that's a first customer, a partner, whatever it may be, you're probably just one or two connections away from to get to. And most likely you have someone in your network that can make that introduction. So I think that's unique to this region. Obviously there are other regions across the country that have that as well. But that's one thing that stands out to me when you asked that question about, specifically, what is unique about Central New York entrepreneurs. That's what I would go to. These entrepreneurs, these small businesses really are in so many ways the lifeblood of our national and local economies. And you can kind of go to the small business administration's website, see a list of statistics, all of them kind of make you go, wow, really. And I'm wondering, is there one for you that kind of sticks with you or one that you think really communicates that importance and that impact that small businesses and entrepreneurs have? Yeah, there are two that come to mind for me. One is the fact that small businesses create more net new jobs. So they're retaining more jobs and creating jobs at a higher rate than larger corporations and also early stage startup companies that tend to scale quickly. And so what I mean by that is if we're hiring two or three employees, a small business is more likely to retain them than a larger company or a very early-stage startup that's growing quickly. The example that I would use on the early-stage side would be a company that is maybe venture-backed and has an opportunity to scale quickly in the marketplace. And they have that, what we hear, that hockey stick growth. In the first year or second year, maybe they hire 30, 40 people, because they got a huge investment, and they're trying to still prove product market fit. Is there really a there, there in the marketplace for them? And in the times where there's not, they've made this investment in people, they've hired a lot of folks, that's great. Our economy is like, yay, we just created a hundred new jobs over the last two years. But unfortunately, either the business there isn't a real value in the marketplace. And so they either close or go out of business and we lose all of those jobs. Or there exit strategy may be to be acquired or merge with another company. When that happens, there tends to be a reduction in workforce as well. And so I like to talk about the fact that net new jobs from a small business standpoint, I like to call that out. I think it's really important. And more like what we'd consider mainstream businesses or non-venture-backed companies, software companies, they're really adding value in terms of economic, I guess creating more economic impact, I would say, than some of these larger companies that are not larger, but these startup companies that are scaling quickly. And so that's one of the net new jobs. The other would be, and this one I just came across and it kind of stood out to me would be that in smaller firms, patents are created at the 16 patents per employee compared to larger firms, which I thought was so. Interesting. And it speaks to what I took away from that was how smaller firms are able to be innovative. Where larger firms, they tend to be we'll use terms, they're less nimble. They can't pivot as quickly. And I think for a lot of reasons, that is very true. So this statistic kind of backed that up for me a little bit, where when you're a smaller company, you have the idea to think innovatively about the market that you're in, the industry that you're in, how you're executing on the work that you're doing, how you're creating value for the customers or clients. So that statistic just really for me, reinforced anecdotally what we hear all the time around larger firms not being able to be as innovative or nimble. And even at the INSPYRE Innovation Hub, we're looking at programming for larger firms in the region where they can engage with us through intrapreneurship, right? Intrapreneurship is this idea that we can help larger firms be more innovative by connecting them to maybe students at universities, entrepreneurs that are working in our environment and ecosystem that may have a different lens on what these larger firms are doing. So again, that data point just kind of reinforces some of that thinking and also kind of validates what we look to be doing in the Innovation Hub in the future. Yeah. You mentioned INSPYRE Innovation Hub, very exciting. Just recently we got to unveil the name and really start rolling out imagery of what that facility is going to be. Obviously, it's going to be the home of all of our innovation and entrepreneurship work, all of our small business supports. So for you, you'll be working there in the near future. What makes this facility to you going to be uniquely positioned to help this small business community in Syracuse, in the greater Central New York region? Yeah, there are a handful of things. One is that I believe it is going to be, as the name suggests, a hub. And this will lead to what I spoke to a moment ago around kind of the isolation, the imposter syndrome that entrepreneurs tend to feel. I think it'll help reduce that because we're creating a community where people can be honest with each other, build relationships that leads to the ability to have honest conversations, be vulnerable and support one another in their endeavors. And so I think one, it's going to be a fantastic place for community. The building is beautiful. It's got so many amenities that I think our entrepreneurial ecosystem needs in terms of flexible coworking space, tenant offices that people can rent, makerspace, production room. I feel as though it is going to be a real one-stop shop for entrepreneurs. So whether you are in that ideation phase, I have an idea, but I don't know what to do. Or you're a company that's been around for 10 or 15 years, but looking to find ways to be more innovative. To create new opportunities in the marketplace. To increase your revenue and things like that. So I think it's going to be a fantastic place for people to come together, build the relationships, and ultimately, to boil it down, I guess it's a place where you're going to get the knowledge and networks that you need to grow and scale your company. So I'm excited about that. We're using the tagline, how do we earn people's commute? And so we have to be very intentional and proactive in creating ways to engage with our community through events and workshops. And so we really are going to work hard to make sure that there are reasons to come into the building on a day-to-day basis. And the other thing that we are working intentionally towards is also creating a very diverse mix of industry types, specifically in terms of individuals or companies that will take up the tenant offices, the physical office locations in the building. And it's already happening. I think we're close to 70% under lease right now for the space. In that mix of businesses, it's already very diverse and their industries and sizes and what they're focused on. And I love that because I think oftentimes when we're in business, we will tend to gravitate towards companies that are in our industry. There's industry conferences for every, you know what I mean? We all have our niche and our lane. And I just think over time, that leads to some blinders. And in my prior work, I spent about 15 years teaching cohort-based classes for entrepreneurs. There were typically 15 to 20 business owners in each class. And we were intentional there to bring the mix of the 15 or 20. Were always diverse in industry one, we didn't want to put competitors in the same room, but two, we strongly felt that you're going to learn more from someone who's not in your industry than you are from someone potentially who is right, because they're just going to look at it and say, why didn't you think of this? Or Why don't you try this? I did this and it worked for me in my sales process. And you have all these, what we call aha moments, right? Oh yeah. I never thought of it like that. So I think the innovation hub, the Inspire Innovation Hub is going to create that kind of opportunity for people. And I'm excited about that. We are going to take a quick break right here. We'll be back with Brandon in just a moment. But first a word from our presenting sponsor, NBT Bank. I would recommend NBT Bank to any business. My name is Chris Polimino and I'm the president of Atlas Fence. Chris had decided to purchase Atlas Fence from the previous owner. He had previous connections at NBT Bank. NBT Bank provided me equipment financing, doubling our entire production workforce. It's important to me as a business owner that the decisions of our banking relationship are made locally. Welcome back. This is Talk CNY, presented by NBT Bank. I'm Katie Zilcosky, director of communications at CenterState CEO, and your host for Talk CNY. I'm here today with CenterState CEO's Senior Business Advisor Brandon Mastrangelo. Thank you so much for being here with us today. Thank you, Katie. Happy to be here. So before the break, we were talking a little bit about what the in people at the Innovation Hub, what our team, the innovation entrepreneurship team will be doing to help out clients, people who come into the space looking to explore their ideas. But we were also really intentional that we wanted to branch out a little bit in some of the work that we were doing. So not only the actual work that's being done, but the who. Can you talk a little bit to that about who are we now not only looking to work for, but working with currently too? Yeah, yeah. Thank you for that question. Yeah, there's been a real intentionality to diversify who we serve and the types of entrepreneurs in terms of the stage that they're at, where they are in the entrepreneurial journey. And so we are working both, we are diversifying both in terms of industries, and so we're not just tech-based businesses. We are working with restaurateurs, people that are interested in starting food trucks, catering businesses, brick and mortar shops. We are working with HVAC companies, with electrical companies, with marketing and production companies. And so that's one thing. And the other important thing is too, we're also being very intentional to make sure that we are engaging with more people in underserved communities and that they feel welcomed in this building, that they feel like there is a place for them that they can receive services. And so those are two things that are really important to us, and we're designing programs and services to make sure that we are effective in serving a broader range of entrepreneurs, both in terms of industry, but also demographic and communities that people live in. So those are two ways in which we are really broadening who we serve. And I think it aligns a lot more with our CenterState vision too. We're not quite open with the Inspire Innovation Hub yet, but so right now, the innovation entrepreneurship team, you are in the Equitable Towers working out of the eighth floor, still doing all of the work though, that will eventually be done in INSPYRE. But can you tell me a little bit about right now, who are you working with? Who are some of the small businesses that you are talking to day in, day out, helping them solve challenges and reach their goals? So I'll just highlight quickly before I give a few examples of some companies, local companies that we're working with. I've used the term ideation a few times, and so we have looked at the entrepreneurial journey and we have broken out programs and services in four stages to meet four different entrepreneurial stages. And so we look at our work in these four stages, and those are one, ideation. I have an idea, but I don't know what to do next. Two, formation. I have a solid business plan. I've done some financial projections. I feel like there's a real opportunity there. It's being validated through doing the work of the business plan and the financial projections and maybe some early customer discovery. So now the need is how do I formalize this business? And so we work with people on putting together what we call their bail team. It's an acronym for your banking, accounting, legal, insurance and legal team. And so that's where we connect people to attorneys to say, okay, you can go talk with this attorney and determine what the best entity formation is, what the best entity formation is for you, whether that's an LLC or an S Corp or a C Corp, et cetera. We'll connect you to bankers to build that relationship, get that banking checking account set up, talk about potential financing that may be needed for you to start or grow your business and so on. And then the third stage is validation. This is the stage that I think we have historically operated in. This would be early-stage companies that have some early product market fit, and they may have a first customer, maybe two customers. They may have a strategic partner, and they're looking to scale through investment and scale quickly. And so a lot of that work has historically been done with our GENIUS New York accelerator and the drones and robotics industry. And so we've lived in that space. The Tech Garden lived in that space for a number of years and did that really, really well. And so for those individuals, we will continue to serve folks at that stage, and it's really about helping them, helping them scale. And that is scaling a lot of their internal systems. It's like scaling your sales process. It may no longer make sense for the founder to continue to be doing the sales day in and day out, he or she or they may be doing the sales on an Excel spreadsheet or just sticky notes like, oh yeah, I talked to so-and-so this day, and I should follow up and moving them to a CRM that someone else could actually have line of sight to and maybe operate within and take over that sales process. So it's about building those internal systems for scaling, helping them understand what they should be delegating, why they should be delegating it, helping the founder understand what he or she or they're uniquely positioned to be doing for the business, and getting focused on that and hiring people to do the other things. And so that's a lot of the conversation for people that are in that validation stage and some of the support that we provide in that. The last is growth. And this would be a stage of business that historically was the Tech Garden and now the INSPYRE Innovation Hub hasn't really served. And that would be for companies that again, are probably 10, 15 years old or more potentially I would say probably have over 10 million in revenue, maybe around 50 ish employees. They're doing fine, right? They're stable, but they may be a little bit stagnant. And this is where we want to engage with them through innovation. So hey, you've been in the marketplace for 20 years. You've got a solid customer base, but your product or service hasn't changed in the last 20 years. To stay relevant and to continue to maybe adopt even more market share, we have to think about what is the next iteration of your Business? And that can be really hard for the reasons I mentioned earlier in this conversation. And so creating opportunities through intrapreneurship or other ways where we can carve out time and work with those types of companies to think about what is that next iteration of their business and what are the opportunities here in Central New York? And there's going to be a lot of opportunities. So a lot of companies are going to have to say,"Hey, we've done this for 20 years, but now there's this opportunity. Can we play in that space? Can we create value there?" I'm excited to engage with companies at that level and to help them ensure that they remain in the community. Part of our work as CenterState is to retain businesses. So I'm excited to try to provide some more direct client service offerings to those types of companies to make sure that this region not only attracts new businesses, and we start new businesses, but that we retain the ones that are here. Take care of people who've invested in our place to begin with. That's right. Well, Brandon, thank you so much for your time today. It was great having you. I appreciate it. Thanks. CenterState CEO's podcast Talk CNY, presented by NBT Bank, is available on all major podcast platforms or centerstateceo.com. Additional content and clips can be seen across CenterState CEO's social media channels. For new episode reminders, be sure to subscribe in your favorite podcast listening app, and don't forget to leave a quick review or five-star rating. Thanks for listening to Talk CNY, presented by NBT Bank.