From Lab to Lake: How Tech is creating small business opportunity and securing the fate of the Great Lakes
The Context
The fight against aquatic invasive species, such as the asian carp and sea lamprey, isn’t just about protecting the environment, it is defending a multi-billion dollar global market. Non-native species like the quagga and zebra mussels threaten a $7 billion Great Lakes fishery. Traditional management is expensive and labor-intensive, creating a market gap for scalable, tech-driven small business solutions.
Michigan’s Blue Economy is emerging and rapidly growing. By aligning startup incubators, real-world testing grounds, and academic R&D, Michigan is becoming the premier destination for water tech companies. Supported by these networks and the Michigan SBDC, entrepreneurs are leveraging world-class infrastructure and university partnerships to build profitable businesses that protect the Great Lakes.
The Incubator
The newest resource in this fight is the Freshwater Research & Innovation Center in Traverse City which will serve as a physical nucleus for water tech startups. The Freshwater Center is expected to open in early 2027 and will feature makerspaces, 3D printing and direct water access to allow hardware and software startups to reduce their time to market by testing sensors and marine robotics right in West Grand Traverse Bay.
Additionally, SmartZones supported by the Michigan Economic Development Corporation (MEDC) across the state, like Headwaters North in Sault Sainte Marie, are curating an ecosystem where small businesses can thrive. The SmartZones connect startups with industry leaders, early stage capital and collaborative workspaces.
The R&D Pipeline
New startups often begin as research at a university where they have access to specialized talent. The research then begins a validation process to help create it as a product. Institutions such as Grand Valley State University’s Annis Water Resources Institute (AWRI) recently secured a $1 million National Science Foundation grant specifically designed to advance emerging technologies and strengthen Michigan’s Blue Economy. Startups can partner with AWRI to validate their hardware and environmental sensors in real-world conditions by leveraging the Institute’s state-of-the-art analytical labs, mesocosm facilities, and dedicated research vessels. Furthermore, AWRI’s integration into the broader NSF Great Lakes RENEW initiative gives founders access to specialized commercialization programs, regional testbeds, and a pipeline of student talent trained in cutting-edge aquatic science.
Lake Superior State University’s Center for Freshwater Research and Education (CFRE) in Sault Sainte Marie provides a real-world testing ground for BlueTech startups to validate marine robotics, environmental sensors, and hydroacoustic technology in active Great Lakes environments. Early-stage companies can also leverage CFRE’s fee-for-service water quality labs to secure crucial third-party validation and economical hardware prototyping. Furthermore, collaborating with the center gives founders direct access to a highly specialized talent pipeline of graduates already trained in maritime operations and aquatic data analysis.
Navigating the Waters
Many new small businesses face that critical, high risk period of starting up. It can be a very isolating and trying time. Fortunately, they don’t have to face it alone. The Michigan SBDC’s Tech Team can help entrepreneurs find and connect with the resources they need to be successful. We help navigate federal research funding opportunities such as the SBIR/STTR program, advise on securing non-dilutive funding, provide business planning and customer discovery consulting, and connect with the right academic, municipal or private sector partners. We work hand-in-hand with groups like 20 Fathoms, Innovate Marquette, Lakeshore Advantage and many others to ensure founders aren’t just building great tech, but create sustainable businesses.
How You Can Get In the Game
Saving the Great Lakes is not just the domain of non-profit and government agencies. It is a thriving sector with opportunities for high growth, innovative small businesses. If you are a founder, tech innovator or investor, engage with the Michigan Blue Tech ecosystem and help keep our lakes great. Schedule a consultation with the Michigan SBDC Tech Team and get connected to learn more.
Joseph Carr
Fresh Water-Technology Team Business Consultant
Michigan SBDC Tech Team
Grand Valley State University
jcarr@michigansbdc.org
Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions and/or recommendations expressed herein are those of the author and do not necessarily reflect the views of the SBA.