In recent years, hundreds of tech startups have launched in southern Ohio/Northern Kentucky, thanks in part to efforts that encourage and support entrepreneurs.
Big things are happening in Greater Cincinnati’s entrepreneurial startup community.
Over the last five years, nearly 400 tech-focused startups have launched in the Southwest Ohio/Northern Kentucky Region, generating $8.2 billion in ecosystem value and creating nearly 9,000 jobs.
Beyond the tech startups, numerous retail, food and beverage, health and wellness, product- and service-based businesses have been launched and grown.
Community leaders recognize the impact of entrepreneurship in shaping the region, from creating vibrant neighborhoods and reinvigorating downtown areas to building a nationally recognized food scene. It can also mean more jobs for current residents, opportunities for recent college graduates, and an influx of people moving into the area.
Achieving this level of success requires a strong strategy driving it forward. Let’s take a closer look at what is being done to encourage and support entrepreneurs in the Greater Cincinnati region:
Providing funding opportunities
Many entrepreneurs begin by bootstrapping — using their own money and revenue from sales to fund their businesses. Eventually, they will hit a growth plateau unless they can secure outside funding, which can come in the form of grants, investor funding, and loans.
Greater Cincinnati is fortunate to have Main Street Ventures, which provides equity-free grants from $5,000 to $30,000 to early-stage businesses. Focusing on retail storefronts, manufactured goods and technology companies, these grants allow business owners to purchase critical equipment, supplies, and technical product development to help them grow without taking on debt.
Investors are often a critical funding source for new businesses, especially for technology-enabled ideas like apps, software, and wearables. Local angel investors like Queen City Angels members often partner with business owners to create structures, procedures, and intellectual property to enable rapid growth.
Venture capital can be the holy grail for a tech business. Each round (pre-seed, seed, Series A through E, and more) exchanges equity in the company for money to get to the next level of product development and customer adoption. Venture capitalists often look to the coasts (New York, California, Seattle) for great opportunities. However, Cincinnati has been able to turn their attention to the Midwest.
If a business is not a good fit for investors, securing a loan may be the best option. Ohio ranks sixth in the country for the number of Small Business Administration (SBA 7(a) loans awarded – more than $1 billion in 2023. This type of loan can be used for working capital, purchasing equipment, refinancing debt, or expanding the business.
Lenders partner with the Small Business Administration to guarantee a percentage of the loan amount, reducing their risk on commercial loans. Because of this, lenders can offer easier approvals for larger loan amounts, often for lower interest rates than traditional loans.
Educating entrepreneurs
While funding is important for businesses, knowledgeable owners are essential as well. The Greater Cincinnati region allocates significant resources toward helping entrepreneurs learn business fundamentals like finances, operations, hiring, marketing and more.
Not only do area colleges and universities offer majors or classes in entrepreneurship, but there are also several excellent accelerators that focus on different industries or types of business owners.
Aviatra Accelerators (of which I am the CEO) is a nonprofit that offers free and low-cost classes, coaching, and membership in a community to help women entrepreneurs start, grow, and fund their businesses.
There are other accelerators that focus on health innovation (Socap Accelerate), minority founders (Mortar), product-based businesses (Product Refinery), tech businesses (Venture Velocity), faith-based founders (Ocean), and others.
There is also a chapter of the Goldman Sachs 10,000 Small Businesses program, as well as EOA, the accelerator arm of Entrepreneurs’ Organization, that supports businesses on their way to $ 1 million in revenue.
Commercial kitchens feed the foodie scene by offering business education for food and beverage entrepreneurs.
Offering business development incentives
Once a business owner grows into a commercial space, they take on additional expenses and risk. To encourage investment in the region’s neighborhoods and help mitigate that risk, many cities offer incentives to growing businesses.
Eric Denson, Development Manager of the City of Cincinnati, sees the city’s role in supporting small businesses as “offering programs that help remove barriers to growth and exposing them to contracting opportunities.”
The City of Covington Kentucky‘s Economic Development Director, Tom West, views investment in entrepreneurship as a “long-term strategy to support startups and encourage them to put down roots in the community.”
Incentives that have worked well in the region include rent subsidies, façade improvement grants, business coaching, assistance in finding commercial spaces, and connecting businesses with potential customers.
Fostering collaboration and community
Startup Cincy serves as the cornerstone entrepreneurial support organization (ESO) in Cincinnati. It is housed inside Cintrifuse, which provides programs, support, and investments to high-growth startups. Nikki Boehmker, Executive Director of Cintrifuse, says they are “actively growing this community and building an inclusive support system to ensure new and emerging entrepreneurs can thrive, driving innovation and regional growth. There is active collaboration across the ecosystem to connect founders with the capital, talent, and resources they need to succeed.”
Startup Cincy Week is an annual event that, in 2024, brought together thousands of entrepreneurs, innovators, and 80+ out-of-town investors representing $193 billion in capital.
“This ecosystem-first approach sets Cincinnati apart, creating fertile ground for startups to thrive at every stage of their journey,” Boehmker added.
Denson also values the level of collaboration in our region, saying, “Cincinnati is rich with over 50 business support organizations and programs that assist entrepreneurs and collaborate selflessly on the goal of advancing business growth.”
Dave Knox, Executive Director of Blue North, the “front door” for entrepreneurship in Northern Kentucky, has seen countless examples of the benefits of this collaboration.
“As a tri-state, it would be easy for our region to fall into the trap of competing with each other based on those state lines. Instead, our entrepreneurial community has come together, driven by organizations whose primary focus is supporting entrepreneurs to help them reach their potential.”
The strength of Greater Cincinnati’s entrepreneurial ecosystem is the result of over a decade of long-term investment and visionary leadership, and it’s driven by a collaborative spirit that’s ingrained in the Midwest.
As the region continues to attract talent, resources, and opportunities, it’s clear that Cincinnati isn’t just keeping pace with the startup world – it’s leading the charge.
