What is a business incubator?
What is a business incubator?
• It is a business that provides advice,
equipment, temporary premises, or
other facilities to those starting up a
business and lacking in capital.
What is the purpose of a business incubator?
• A Business incubator is established to develop and
implement a strong microenterprise development
program that addresses the needs of the low to
moderate income residents and provides access to
loan capital, business support, training, technical
assistance and follow-up services. An incubator works
with existing small business owners to strengthen and
sustain this sector as well. Most cities recognize the
potential positive and significant impact that the
development of micro and small business enterprises
has on economic development.
What Services would a Business Incubator provide?
• The Business incubator would operate under
the office of the CRA, providing:
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Training workshops
Technical assistance
Business support
Loan application and approval process
Loan disbursements and collections
On-going business monitoring.
What Services would a Business Incubator provide?
(cont.)
• The Small Business Incubator will offer opportunities for
the next step of growth, offering services such as:
– Marketing,
– bookkeeping,
– business coaching
– office/conference space for client meetings
– office equipment that would otherwise not be
affordable.
What Services would a Business Incubator provide?
(cont.)
• Non-clients will also have the opportunity to
take advantage of this planned facility, in a
virtual way. Training will be offered to
incubator businesses and on-site staff will be
there to assist.
What role would the Incubator play in Job Placement?
• The business incubator would include a job
placement center that will begin with a
community assessment of existing resident’s
job skills, potential job opportunities and skills
training being provided in Miami Dade County.
The Center will act as a clearinghouse of
information as well as provide job seekers with
some assessment and skills training and
placement.
The need for an incubator in North Miami
• Many ‘would be entrepreneurs’ in North Miami do
not have the technical know-how to turn their
dreams into reality. Others don’t really know how
to navigate the bureaucracy that everyone has to
navigate in order to open and run a successful
business in this country. A business incubator can
provide ideas, start-up space and technical support
to new entrepreneurs as well as established
businesses.
Types of Business Incubators
• There are 4 main types of Business Incubators:
Local Economic Development Incubators, Academic
and Scientific Incubators, Corporate Incubators, &
Private Investors’ Incubators.
• The North Miami CRA is interested in establishing
the first type, a Local Economic Development
Incubator.
Local Economic Development Incubator Model
Goal
Objectives
Targets
Offering
Key Problems
Non-profit
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job creation
re-industrialisation / revitalisation
economic development
support to particular target groups or industries
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development of SMEs and clusters
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small commercial craft or service companies
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in some cases, high-tech companies
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hosting and shared services
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administrative assistance
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consulting
Eventually:
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coaching, training, networking
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access to financing
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durability – lack of stability of resources
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quality of management and services provided – highly dependent on
the quality of the manager
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governance, risk of conflicts about the objectives, bureaucratic redtape, time spent in negotiating with different partners
Trends
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regular development
increasing territorial coverage
Incubator Examples:
• Tools for Change: Black Economic Development
Coalition Inc.
• Metro Broward: The Small Business Success
Catalyst
• International Enterprise Development Inc.
Tools for Change: Black Economic Development
Coalition Inc.
Tools for Change: Black Economic Development
Coalition Inc.
Tools for Change: Black Economic Development
Coalition Inc.
Metro Broward: The Small Business Success
Catalyst
Metro Broward: The Small Business Success
Catalyst
Metro Broward: The Small Business Success
Catalyst
Metro Broward: The Small Business Success
Catalyst
Metro Broward: The Small Business Success
Catalyst
International Enterprise Development Inc.
International Enterprise Development Inc.
International Enterprise Development Inc.
International Enterprise Development Inc.
International Enterprise Development Inc.
A business incubator will:
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Help revitalize a corridor
Create jobs
Establish new businesses
Make established businesses more
successful
• Increase the tax base of the City