One reason Kentucky is experiencing the strongest economic growth in its history lies in its commitment to supporting and growing small and innovative businesses across the commonwealth. With the state government’s focus on Kentucky business, more resources are available to small businesses and startups than ever before.
Within the state, the Cabinet for Economic Development brings together partners, programs and opportunities for new and expanding Kentucky businesses. It provides information and tools for finding financial support, as well as programs that can help with mentoring, training and workforce development.
According to its 2023 annual report, the cabinet helped 3,000 entrepreneurs and assisted those clients in raising more than $1.5 billion in funding. These same companies have generated more than $5.44 billion in revenue and more than 12,000 jobs.
Kentucky’s Innovation Team
The cabinet’s Office of Entrepreneurship and Innovation, also known as Kentucky’s Innovation Team, is charged with ensuring Kentucky entrepreneurs and innovators have access to the what they need to launch and grow their businesses.
“The Cabinet for Economic Development and the Kentucky Innovation Team support all entrepreneurs and startups through a wide spectrum of programs and generally serve as a powerful navigation system for innovative businesses launching in Kentucky,” said David Brock, interim executive director of the office. “We pride ourselves on customer service and helping people find the most impactful resource for their company.”
That support pays off for all Kentuckians, he added.
“Entrepreneurs can drive the kinds of technological advances that help Kentucky compete faster and farther, building on the current economic momentum we are seeing across the state. Developing a greater density of startups and startup talent can have a cascading effect that fortifies larger enterprises and perpetuates invention,” Brock said.
“Perhaps most importantly, these new and innovative businesses create the kinds of well-paying jobs Governor Beshear has emphasized. Since 2022, the average incentivized hourly wage has topped $26 in three consecutive years for the first time — elevating the quality of life for more Kentuckians and their families.”
Finding crucial funding resources
Brock’s office helps new business owners learn about and identify financial incentives such as tax credits, grant programs and other opportunities. While they do not assist directly with grant applications, they are able to help businesses locate and understand grants and find grant writing assistance.
“Some of what we offer directly, like the Kentucky Small Business Tax Credit or the Kentucky State Trade Expansion Program (STEP), are broadly applicable to any company investing in growth in the state, or expanding sales internationally, respectively,” said Brock. “Others, like the Kentucky Angel Investment Tax Credit, or the Kentucky Enterprise Fund, an early-stage investment vehicle managed by the Kentucky Science and Technology Corporation, are focused on high-tech companies with high growth potential.”
He also noted there is more federal money available for innovation than in any time in recent history. One program is the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) also known as America’s Seed Fund. The program provides funds to small businesses whose technological innovations show promise.
“Kentucky does have a specific, nationally recognized program [Kentucky SBIR/STTR Funding Match] to provide matching funds for companies that have already received SBIR/STTR awards from federal agencies… The Cabinet also funds a program through the Kentucky Science and Engineering Foundation that will assist companies in applying for federal SBIR/STTR awards,” Brock said.
A key partner: innovation hubs
Kentucky’s commitment to supporting entrepreneurs and new business start ups led to the development of a system of regional “innovation hubs.” Selected through a competitive RFP process, six regional hubs represent all 120 counties. Each hub cultivates and leverages partnerships with local organizations, educational institutions and economic development groups.
Serving 17 counties in Northern Kentucky, Blue North is our region’s innovation hub. Through hosting and sponsoring programs for a wide array of entrepreneurs, the hub is building a close-knit and supportive community for regional startups and small businesses.
“We fund a number of initiatives through partner organizations – the main one being innovation hubs we work with throughout Kentucky, which act as a critical entry point for startups and current or aspiring entrepreneurs,” said Brock.
“They are key partners in driving growth in entrepreneurship and Kentucky’s tech-based economy. The hubs represent a fresh approach to supporting innovation, one that that is led by organizations and experts on the ground in communities across the state. In addition to in-house expertise, they marshal regional strengths in industry and higher education, public-private partnerships and other unique local assets to provide comprehensive, direct support for entrepreneurs,” he said.
Technology and innovation are reshaping the economy. If Kentucky aims not only to compete, but to lead in the future economy, we need to find innovative ways to help existing industries build strength and identify opportunities for growth in new sectors, Brock added.
“If you are an entrepreneur in Kentucky, small business owner or start-up founder, our office understands the challenges and hurdles that exist in getting your business/operation off the ground or taking it to the next step. We are here to directly help with those obstacles and understand that by continuing to foster a business-friendly environment in the commonwealth, we are helping to create quality, high-wage jobs and a better economy for everyone,” he said.
For more information on the Office of Entrepreneurship and Innovation, the innovation hubs, and other programs for entrepreneurs, visit KYInnovation.com or email info@kyinnovation.com.
Contact Blue North at hey@bluenorthky.com or see their website at bluenorthky.com for more information.
