Phyllis G. Queen
Business Consultant for TFCE
on:
Business Incubator/
Innovation Center
Business Incubator
(National Business Incubation Association)
Business incubators are
instrumental in accelerating the
success of entrepreneurs with
the start-up of new or fledgling
companies.
Different Types of Business
Incubators
(National Business Incubation Association)
Non-profit (94%)
 For-profit (6%)
Made up of:
 Technology (39%)
 Manufacturing (3%)
 Mixed (54%)
 Specialty or Niche Markets (4%)

Operators/Sponsors of
Business Incubators (NBIA)
Economic Development Organizations
(31%)
 Government Entities (21%)
 Academic Institutions (20%)
 Hybrids (8%)
 For-profit Entities (4%)
 Other Types of Organizations (8%)
 No Sponsor (8%)

Types of Services
Business Basics Assistance
 Marketing Assistance
 Technology Assistance
 Networking Activities Assistance
 Financial Management Assistance
 Regulatory Compliance Assistance

Types of Services (cont.)
Assist with Access to Capital
 Access to Internet Services
 Access to Higher Education Resources
 Assist with Presentation Abilities
 Access to Business Training Programs
 Assistance with Intellectual Property

Asheville-Buncombe Technical Community College
Business Incubation Program
Business plan must be submitted
 2 year term in program
 Submit to open book accounting
 Complete four business seminars
 Attend monthly tenant meetings
 Pay rent

Asheville-Buncombe Technical Community College
Student Business Incubation Program
12 month extracurricular activity
 4 student run businesses selected each year
 Requirements same as for businesses
except:
 Maintain student status
 College & community event participation

Ben Craig Center (UNC Charlotte)
Graduated 102 companies (as to date)
 80% financially viable at graduation
(avg. 3-5 yrs. incubation stay)
 Client base is:

44% Technology
39% Service oriented
17% Product sales
Nussbaum Center for Entrepreneurship
(Greensboro, NC)
Graduated 130 businesses
 80% success rate
 Over 1200 jobs have been created
 In 2005 alone, 125 million in revenue and 4
million in tax revenue added to local
economy.

Fayetteville N.C. Business Center
(in partnership with Fayetteville State University)
Hands-on approach
 Flexible space in which to grow
 Marketing assistance
 Special topic seminars

So, Why a Business
Incubator/Innovation Center
for Robeson County?
2005 N.C. Statistics
(Department of Commerce)
New business start-ups – 25,906
 Business failures – 22,867
 3,039 difference
 88% - failure
 12% - success

https://edis.commerce.state.nc.us/docs/stateComparison/NC_NC.pdf
Loss of Jobs (N.C.)
(Bureau of Economic Analysis)



Manufacturing jobs lost
between July 2007 – July
2008 totaled approx.
18,000.
Construction jobs
increased from July 2007
– July 2008, creating
approx. 1,900 jobs.
What happened to the
other 16,100 people who
lost their jobs?
“Quite simply, the
state’s rural economies
are not creating
enough high- and
middle income jobs to
meet all of their local
employment needs.
For some workers, the
option is to settle for
underemployment or
no employment.”
North Carolina Unemployment
(According to U.S. Department of Labor)

Unemployment rate 6.6% as of July 2008
 .7%

increase from June 2008 – July 2008
1.9% increase from July 2007 – July 2008
N.C. Annual Unemployment Rate 1995-2005
(N.C. Commission on Workforce Development)
9%
8%
Unemployment Rate
7%
6%
North Carolina
5%
Metro
Rural
4%
3%
2%
1%
0%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
N.C. & Robeson County Unemployment Rates
1994-2003
(N.C. Employment Security Commission)
14
12
10
8
County
State
6
4
2
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Statistics
(U.S. Dept. of Labor)
Unemployment in September 2007
Robeson County
North Carolina
6.1%
4.7%
Statistics (cont.)
(U.S. Census Bureau )
% of families living below poverty level in 2006
Robeson County
North Carolina:
25.5%
15.1%
Statistics (cont.)
(U.S Census Bureau)
Median household income in 2006:
Robeson County
North Carolina
$29,195
$40,729
PER CAPITA PERSONAL INCOME
(Bureau of Economic Analysis)
“In 2006 Robeson had a per capita personal
income (PCPI) of $21,675. This PCPI ranked
99th in the state and was 67 percent of the
state average, $32,247, and 59 percent of the
national average, $36,714.”
http://www.bea.gov/regional/bearfacts/action.cfm?fips=37155&areatype=37155&yearin=2006
Business Incubation Success

Historically 87% Success Rate (Nationally)
(National Business Incubation Association)

Every 50 jobs created by an incubator client
generate another 25 jobs in the community.
(National Business Incubation Association)

88% of NC incubator graduates remain in close
proximity of the incubator and continue to
contribute to the community economy.
(NC Technological Development Authority, Inc.)
Effectiveness of an Incubator as an
Economic Development Tool
Stimulates entrepreneurship
 Potential to build community wealth
 Create new jobs
 Increase community tax base
 Community revitalization

In Summary
In light of the information provided, we see that a business
incubation program has proven to be a successful tool in
improving the economic status of a community.
Since 52% of Americans work in a small business setting
(between 1 & 499 workers), it is proven to be a continuing
source of vitality for our economy producing ¾ of the
economy’s new jobs between 1990-1995.
http://economics.about.com/od/smallbigbusiness/a/us_business.htm
So, considering the facts presented, we should do all we can
to see new businesses succeed in order to sustain/improve
the economy?
Plans of TFCE
Academic institutions
 Local organizations
 Lending institutions
 Seek funding

QUESTIONS?