In collaboration with Cleveland State University, the Upjohn Institute for Employment Research has released a new study examining the minority entrepreneurial ecosystem of Dayton, Ohio. The study finds that minority entrepreneurs still face many challenges and that targeted efforts can close the ecosystem gaps. Supported by the Ewing Marion Kauffman Foundation, the report is the result of a multi-year study that evolved over time in response to the challenges of COVID-19 and the changing priorities of business support organizations (BSOs) at the time.
Utilizing a series of interviews with representatives and stakeholders from Dayton’s entrepreneurial ecosystem (EE), it identifies the strengths and weaknesses of the ecosystem and provides recommendations for future improvement.
The Entrepreneurial Ecosystem of Dayton
Located in the Miami Valley region of southwestern Ohio, Dayton stands out among midsize cities for its extensive network of BSOs comprising its EE. There are over 20 organizations, many hosting multiple programs and offering a wide range of services to entrepreneurs from various industries and backgrounds. The city’s smaller size, compared to larger metro areas like Cleveland and Cincinnati, can be an advantage, especially when it comes to access to services and networking with valuable contacts. As one provider explained: “It’s like the smaller classroom—the teacher has fewer students, which means she or he has more time with each of those students,” implying that fewer entrepreneurs per BSO allows for better service provision.
In recent years, BSO leaders and local stakeholders have faced considerable adversity as decreases in federal funding have led to “shrinking budgets all over” for many organizations, limiting their capacity to provide services. Many organizations have begun using more general language regarding the groups they serve, no longer emphasizing programming specifically for underserved groups on their websites due to the federal shift away from diversity, equity, and inclusion (DEI). One provider expressed concerns over these changes: “It will probably take away some enthusiasm and put fear in, and it will also likely affect lending to minority entrepreneurs.” While most service providers continue to offer the same services and work to make their programs accessible to minority groups, changes in language can make it harder for underrepresented populations to find programming tailored to their needs. Although many support organizations have adjusted their promotional language, providers consistently emphasize that Dayton’s BSOs remain strongly committed to promoting minority entrepreneurship.
Across all years of research, a consistent finding has been that there is an abundance of services for early-stage entrepreneurs in the ideation or start-up phase, but support for businesses at later stages of development is more limited. This year’s findings show progress in expanding services for later-stage entrepreneurs, including the establishment of organizations focused specifically on mid-tier businesses that are already generating revenue. At the same time, providers reported a common theme they see among entrepreneurs: an overemphasis on securing funding and unrealistic expectations about access to capital. One provider shared an experience: “I had a guy come up to me last week and he said, ‘I need $5,000,’ and he said it to me as if I was going to go into my pocket and pull it out.” In response to the mismatch between expectations and reality, BSOs are working to educate entrepreneurs by emphasizing that while capital is important, it should come after developing a solid business plan and understanding business finances to ensure that any funding obtained is used effectively.
The most persistent challenge identified across all years of research is the lack of a clear entry point into the entrepreneurial ecosystem. Nearly all providers noted that entrepreneurs often struggle to determine which organization best fits their needs. When entrepreneurs are redirected from one organization to another, frustration can build, leading to lost time and missed opportunities to receive support. To address this challenge, ecosystem leaders have launched a new initiative designed to streamline access and improve coordination among organizations. The Innovative Business Resource Opportunity Center (IBROC), established in late Fall 2025, serves as an entry point for entrepreneurs seeking services, providing clear navigation and guidance to connect them with the most appropriate organization from the start of their interaction with the ecosystem. The IBROC opened as this research concluded, so while there is hope that the initiative will solve the longstanding entry-point challenge, its effectiveness has yet to be determined.
Providers also noted that different key performance measures—which are typically dictated by funding stipulations—between organizations drive disconnection across the ecosystem. Competition for funding and pressure to meet specific metrics may lead BSOs to focus more on organizational results than on entrepreneur success or the overall effectiveness of the ecosystem. Aligning metrics to emphasize entrepreneur success and encouraging greater collaboration among BSOs can help reduce fragmentation. By promoting collaboration over competition, providers emphasized that coordinated efforts result in better outcomes for entrepreneurs.
The EE of Dayton did not emerge by chance, as it reflects decades of intentional investment in creating an environment that supports entrepreneurial success. The city has remained dedicated to expanding opportunities for minorities and historically under-served groups, despite a nationwide decline in support for DEI initiatives. Although there are still gaps in service provision across the ecosystem, leadership has been diligently working to address them through ongoing evaluation of the EE and targeted strategies aimed at building an inclusive and supportive ecosystem for all entrepreneurs looking to start and grow their businesses.
About Upjohn Regional
The Upjohn Regional team partners with economic development agencies, workforce boards, nonprofits, and local governments to provide clear, data-driven insights. Their work includes regional economic and workforce analysis, industry cluster studies, housing and healthcare assessments, and economic impact modeling. Based in Michigan but working nationwide, the team helps communities turn data into strategies that build stronger, more resilient economies.
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