Charlottetown-based entrepreneurial hub The Startup Zone closed its doors on Tuesday, leaving some former customers wondering where they can get the same support for their own businesses.
Jordan Patterson said his then-startup, Forestry.io, was one of Startup Zone’s first clients in 2016. He said the resources provided by Startup Zone filled a real need for businesses starting up.
“Space is important,” Patterson says. “For small businesses, renting office space can be a challenge, but beyond that, having those resources can make or break a company, as can mentoring and support for new entrepreneurs.”
“We have lawyers come in and do office hours once a week, once every two weeks, depending on what’s needed. We also have accountants, HR people, etc.”
He said it was also useful to network with other companies, some of which were dealing with similar issues as he was.
“I call this my entrepreneurial home,” said Natalie Arceneaux, a business owner who has used the Startup Zone.
“At the end of the day, it was a physical space and a hub that created synergies that wouldn’t necessarily be possible if you were working from home or had your own office separate from other entrepreneurs.”
Entrepreneur Nathalie Arceneaux, seen in a file photo, used the Startup Zone and said collaboration is important to her. (CBC)
“There’s very little consistency.”
But Patterson said things have changed over the years in the Startup Zone.
“One of the issues has always been a change in CEO,” he said, recalling that there have been around eight changes in eight years, “and at least two long periods when there was no one in that position.”
He said every new CEO comes in with their own ideas about how the hub should be run.
“There was very little consistency in what the programming was and who was running it.”
A report prepared by consulting firm MRSB for Innovation PEI in August 2023 noted that among other challenges facing startup zones, “stakeholders interviewed cited high turnover in startup zones as a major obstacle to their success.” [sic] Poor management has led to weak relationships with stakeholders and the public.”
Patterson said that despite the fluctuations, he believes clients have always been able to get at least the majority of what they need from the Startup Zone.
Customers have not been informed of the reasons for this week’s closures, he said, and at this point, he personally feels “a little fatigued” about the matter after trying to find any information.
What next?
The MRSB’s report on Innovation PEI said there was “room to advance the ecosystem by combining Startup Zone and Launchpad PEI into one entity” rather than offering two distinct sets of services.
A spokesman for the provincial Department of Economic Development, Innovation and Trade said that’s exactly the plan.
“The full suite transition may take some time,” she said in a statement, “but eventually, you will see the same experience on Launchpad that you’ve had before.”
In the meantime, Innovation PEI staff are meeting individually with Startup Zone clients to understand their needs, the statement said.
Whatever happens, Patterson said he thinks that while the startup zone’s closure may be a blow to P.E.I.’s entrepreneurs, “it’s not going to destroy anything.”
He added: “Entrepreneurs are resilient. Otherwise, they wouldn’t be entrepreneurs. I believe that people will be OK.”
