THE BUSINESS
INCUBATOR
A T00L TO ENHANCE
RURAL ECONOMIC
DEVELOPMENT
BUSINESS INCUBATORS
History
• Batavia, N.Y. –1959
• U.S. Small Business Administration1984-1987
• 1985-National Business Incubation
Association formed
Source: National Incubator Association
NBIA
National Business Incubator Association
800
Nationwide
PURPOSE
• To nurture young firms
• Create new jobs
• Produce successful graduates
National Business Incubator Association
SURVEY
• 87% of incubated firms remain
in business
• Business incubation programs
invest $1,109 to create each job
• Approximately 84% of the firms
remain in their community
MENU OF OFFERINGS
• Flexible space
• Lease space
• Network of technical and
business consultants
• Cooperative ventures with other
incubator members
MENU Cont’d
• Shared resources-receptionist
and office personnel, fax
machines and copiers …..
• Relationships with financial
institutions and venture
capitalists and other investors
• Fitness room
• Conference room, etc
GENERALLY ACCEPTED
INCUBATOR BEST PRACTICES
•Strategic Plan developed with
quantifiable objectives
•Criteria for selecting clients
•Collect information on client
performance
•
Source: National Incubator Association
BEST PRACTICES cont’d
• Developed effective network of local
business service providers and other
resource
• Evaluates the contributions of members of
its service network providers
• Highly visible and viewed as the premier
entrepreneur service organization
Source: National Incubator Association
BEST PRACTICES cont’d
• Facilities encourage client synergies
• Management reviews financial statements
quarterly
• Implements changes as a result of
evaluation
Source: National Incubator Association
OBSTACLES
• Client funding
• Lack of community understanding of
incubator’s role
• Inadequate facilities or space
• Incubator cash flow
Source: National Incubator Association
OBSTACLES cont’d
• Lack of full-time staff dedicated to
the incubator
• Inability to follow up with clients to
address issues.
• Difficulty recruiting clients
• Difficulty getting entrepreneurs to
participate in educational programs
Source: National Incubator Association
Source: Mississippi Development authority
INCUBATORS
YOU BE THE JUDGE!
WHAT KIND OF A FACILITY
WOULD YOU LIKE TO
GROW A BUSINESS?
Enterprise Centers’ Floor Plan
Oxford, Batesville, Grenada
Source: National Incubation Association
Source: National Business Incubation Association
Source: National Incubator Association
Source: National Business Incubation Association Source
San Juan College, Farmington, New Mexico
Business and Industry Training Center
San Juan College, Farmington, New Mexico
Business and Industry Training Center
San Juan College, Farmington, New Mexico
Business and Industry Training Center
San Juan College, Farmington, New Mexico
Business and Industry Training Center
San Juan College, Farmington, New Mexico
Business and Industry Training Center
San Juan College, Farmington, New Mexico
Business and Industry Training Center
San Juan College, Farmington, New Mexico
Business and Industry Training Center
Incubators
Referring to the first slide. Are
incubators a tool for economic
development?
I would say, “Yes, if they practice
what they preach. Start small,
test the water and grow when
conditions warrant that growth.”
Questions
?
Carolyn Lott, Area Agent
Community Resource Development
1241 Mound Street, Suite E
Grenada, Mississippi 38901
Phone 662-226-2061
Fax 662-227-2862