THE BUSINESS INCUBATOR A T00L TO ENHANCE RURAL ECONOMIC DEVELOPMENT.

THE BUSINESS THE BUSINESS INCUBATORINCUBATOR

A T00L TO ENHANCE RURAL A T00L TO ENHANCE RURAL ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

BUSINESS INCUBATORSBUSINESS INCUBATORSHistoryHistory

• Batavia, N.Y. –1959Batavia, N.Y. –1959

• U.S. Small Business Administration-U.S. Small Business Administration-1984-19871984-1987

• 1985-National Business Incubation 1985-National Business Incubation Association formedAssociation formed

Source: National Incubator Association

NBIANBIANational Business Incubator AssociationNational Business Incubator Association

800800NationwideNationwide

PURPOSEPURPOSE

• To nurture young firmsTo nurture young firms

• Create new jobsCreate new jobs

• Produce successful graduatesProduce successful graduates

National Business Incubator AssociationNational Business Incubator Association

SURVEYSURVEY

• 87% of incubated firms remain in 87% of incubated firms remain in businessbusiness

• Business incubation programs Business incubation programs invest $1,109 to create each jobinvest $1,109 to create each job

• Approximately 84% of the firms Approximately 84% of the firms remain in their communityremain in their community

MENU OF OFFERINGSMENU OF OFFERINGS

• Flexible space Flexible space • Lease spaceLease space• Network of technical and business Network of technical and business

consultantsconsultants• Cooperative ventures with other Cooperative ventures with other

incubator membersincubator members

MENU Cont’dMENU Cont’d

• Shared resources-receptionist and Shared resources-receptionist and office personnel, fax machines and office personnel, fax machines and copierscopiers ….. …..

• Relationships with financial Relationships with financial institutions and venture capitalists institutions and venture capitalists and other investorsand other investors

• Fitness roomFitness room• Conference room, etcConference room, etc

GENERALLY ACCEPTED INCUBATOR BEST PRACTICES

•Strategic Plan developed with quantifiable Strategic Plan developed with quantifiable objectivesobjectives

•Criteria for selecting clientsCriteria for selecting clients

•Collect information on client performanceCollect information on client performance•

Source: National Incubator Association

BEST PRACTICES cont’d

• Developed effective network of local Developed effective network of local business service providers and other business service providers and other resourceresource

• Evaluates the contributions of members ofEvaluates the contributions of members of its service network providersits service network providers

• Highly visible and viewed as the premier Highly visible and viewed as the premier entrepreneur service organizationentrepreneur service organization

Source: National Incubator Association

BEST PRACTICES cont’d

• Facilities encourage client synergiesFacilities encourage client synergies

• Management reviews financial statements Management reviews financial statements quarterlyquarterly

• Implements changes as a result of evaluationImplements changes as a result of evaluation

Source: National Incubator Association

OBSTACLESOBSTACLES

• Client fundingClient funding

• Lack of community understanding of Lack of community understanding of incubator’s roleincubator’s role

• Inadequate facilities or space Inadequate facilities or space

• Incubator cash flowIncubator cash flow

Source: National Incubator Association

OBSTACLES cont’dOBSTACLES cont’d

• Lack of full-time staff dedicated to the Lack of full-time staff dedicated to the incubatorincubator

• Inability to follow up with clients to Inability to follow up with clients to address issues.address issues.

• Difficulty recruiting clientsDifficulty recruiting clients

• Difficulty getting entrepreneurs to Difficulty getting entrepreneurs to participate in educational programsparticipate in educational programs

Source: National Incubator Association

Source: Mississippi Development authoritySource: Mississippi Development authority

INCUBATORSINCUBATORS

YOU BE THE JUDGE!YOU BE THE JUDGE!

WHAT KIND OF A FACILITY WHAT KIND OF A FACILITY WOULD YOU LIKE TO GROW A WOULD YOU LIKE TO GROW A

BUSINESS?BUSINESS?

Enterprise Centers’ Floor PlanOxford, Batesville, Grenada

Source: National Incubation AssociationSource: National Incubation Association

Source: National Business Incubation AssociationSource: National Business Incubation Association

Source: National Incubator Association Source: National Business Incubation AssociationSource: National Business Incubation Association Source

SSan Juan College, Farmington, New Mexico an Juan College, Farmington, New Mexico

Business and Industry Training Center Business and Industry Training Center

San Juan College, Farmington, New Mexico San Juan College, Farmington, New Mexico

Business and Industry Training Center Business and Industry Training Center

San Juan College, Farmington, New Mexico San Juan College, Farmington, New Mexico

Business and Industry Training Center Business and Industry Training Center

San Juan College, Farmington, New Mexico San Juan College, Farmington, New Mexico

Business and Industry Training CenterBusiness and Industry Training Center

San Juan College, Farmington, New Mexico San Juan College, Farmington, New Mexico

Business and Industry Training Center Business and Industry Training Center

San Juan College, Farmington, New Mexico San Juan College, Farmington, New Mexico

Business and Industry Training Center Business and Industry Training Center

San Juan College, Farmington, New Mexico San Juan College, Farmington, New Mexico

Business and Industry Training Center Business and Industry Training Center

IncubatorsIncubators

Referring to the first slide. Referring to the first slide. Are Are incubators a tool for economic incubators a tool for economic development?development?

I would say, I would say, “Yes, if they practice “Yes, if they practice what they preach. Start small, test what they preach. Start small, test the water and grow when conditions the water and grow when conditions warrant that growth.”warrant that growth.”

QuestionsQuestions

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Carolyn Lott, Area AgentCarolyn Lott, Area Agent

Community Resource DevelopmentCommunity Resource Development

1241 Mound Street, Suite E1241 Mound Street, Suite E

Grenada, Mississippi 38901Grenada, Mississippi 38901

Phone 662-226-2061Phone 662-226-2061

Fax 662-227-2862Fax 662-227-2862