Bay Path was founded in 1897 as Bay Path Institute in Springfield, Massachusetts. Bay Path started as an urban, coeducational institute offering business teacher training, secretarial science, business administration and accounting degrees. The name Bay Path was derived from its location on the old Bay Path (a part of Boston Post Road), which united the western part of the state with what was once the Massachusetts Bay Colony. The first class in 1897 was 30 students, but Bay Path grew rapidly in its first few decades. In 1920, Bay Path bought the Clawson-Hamilton Business School of Brattleboro, Vermont, and renamed it the Brattleboro Business Institute. In the same year the competitor Griffin Business School was also purchased and integrated into Bay Path. Bay Path was one of the largest and most successful business schools in the highly competitive Northeast during this time, with a peak enrollment of 1,200 students taking classes in innovative, accelerated format. The institution struggled heavily, however, during the Great Depression and World War II, and by 1944 the institute was nearly bankrupt.