The U-Start business incubator in Schenectady outgrew its building almost the day it opened. U-Start, a project of Union College and a group of business leaders, opened in a house next to the Union campus two years ago. The organizers recognized the need to support start-up businesses in Schenectady by offering low rents, shared office services and equipment and expert advice for new entrepreneurs. They sought to replicate the success of incubators at Rensselaer Polytechnic Institute and elsewhere. The space is rented initially at below-market rates, but prices are increased each year to encourage tenants to move elsewhere in or around Schenectady.
Company offices occupy former living space.
The intimacy fosters the chance meetings and shared ideas that entrepreneurs thrive on, its sponsors say. The incubator is conveniently across the street from Union College, which provides faculty mentors and student interns. But it was clear from the beginning that U-Start would need more space. There comes a point where the closeness can hinder productivity, says Richard Hogle, who started Artela Systems Inc., a high-tech company that has since moved to bigger quarters on Erie Boulevard in Schenectady. We had two offices the size of two bedrooms.