New York’s I-90 corridor runs through the central and western regions of New York state and includes three large cities: Buffalo, Rochester, and Syracuse. This area has a rich history of incubating preeminent American companies. And collectively, the area has received Tech Hubs Designation and has been awarded federal funding and received significant private sector investment in new manufacturing. However, over the last several decades, these cities have experienced declines in jobs and population. The three cities are also among the lowest in small business lending among midsize cities. In response, the I-90 corridor seeks to leverage its rich and diverse supply of resources to reignite its entrepreneurial spark and rebuild its small business ecosystem. Despite the plethora of resources in the area, small businesses and the institutions that serve them face significant challenges and can benefit from robust public and philanthropic support and greater regional coordination.

To understand the strengths, weaknesses, and gaps in the I-90 corridor’s financial, philanthropic, and governmental infrastructure for small business, we conducted several interviews with people who work in government, lending and investing, technical assistance, philanthropy, and economic development, plus people who are involved in their local chamber of commerce and who are small business owners. We supplemented the interviews with an analysis of small-business lending activity and other economic metrics.

Our research finds the following:

1. economic growth in the I-90 corridor has been slow or nonexistent;
2. the I-90 corridor has a moderate presence of small business activity relative to its peers;
3. small businesses face challenges to their growth;
4. racial, ethnic, and gender disparities exist in small business ownership;
5. small business lending institutions are present, but lending levels are low;
6. there are spatial disparities in lending;
7. there is a multiplicity of technical assistance providers in the I-90 corridor; and
8. corridor cities have a hard time sustaining and retaining local businesses.

Efforts to grow and support small businesses are important steps toward creating a strong economy in the I-90 corridor that keeps businesses and investment in the local economy. There is a robust set of local, state, federal, and philanthropic small business supports across the nation that the I-90 corridor can draw from.

A regional strategy or set of strategies can consider four dimensions of support. First, the I-90 corridor can seek to increase access to capital and make that access more equitable. Second, the I-90 corridor can invest in more effective business development services. Third, the I-90 corridor could better deploy public sector and anchor institution procurement in support of small business objectives. Finally, some new resources will be needed for small businesses directly. Alongside these dedicated strategies is the broader set of state and federal resources that must also be thoughtfully engaged. Robust and sustained philanthropic investment will be needed to help expand access where the public sector does not adequately reach. Beyond philanthropy and government, additional financial and nonfinancial private sector capacity and investment will be needed to grow mainstream as well as mission finance providers to adequately fill small businesses’ needs. Through these efforts, stakeholders in the I-90 corridor can create a vibrant, equitable small business ecosystem.