THE BUSINESS INCUBATOR

2. THE BUSINESS INCUBATOR A T00L TO ENHANCE RURAL ECONOMIC DEVELOPMENT

3. BUSINESS INCUBATORSHistory • Batavia, N.Y. –1959 • U.S. Small Business Administration-1984-1987 • 1985-National Business Incubation Association formed Source: National Incubator Association

4. NBIANational Business Incubator Association 800 Nationwide

5. PURPOSE • To nurture young firms • Create new jobs • Produce successful graduates

6. National Business Incubator AssociationSURVEY • 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

7. MENU OF OFFERINGS • Flexible space • Lease space • Network of technical and business consultants • Cooperative ventures with other incubator members

8. 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

9. GENERALLY ACCEPTED INCUBATOR BEST PRACTICES Strategic Plan developed with quantifiable objectives Criteria for selecting clients Collect information on client performance Source: National Incubator Association

10. 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

11. Facilities encourage client synergies Management reviews financial statements quarterly Implements changes as a result of evaluation Source: National Incubator Association BEST PRACTICES cont’d

12. OBSTACLES • Client funding • Lack of community understanding of incubator’s role • Inadequate facilities or space • Incubator cash flow Source: National Incubator Association

13. 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

14. Source: Mississippi Development authority

16. INCUBATORS YOU BE THE JUDGE! WHAT KIND OF A FACILITY WOULD YOU LIKE TO GROW A BUSINESS?

17. Enterprise Centers’ Floor PlanOxford, Batesville, Grenada

29. Source: National Incubation Association

30. Source: National Business Incubation Association

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

32. San Juan College, Farmington, New Mexico Business and Industry Training Center

33. San Juan College, Farmington, New Mexico Business and Industry Training Center

34. San Juan College, Farmington, New Mexico Business and Industry Training Center

35. San Juan College, Farmington, New Mexico Business and Industry Training Center

36. San Juan College, Farmington, New Mexico Business and Industry Training Center

37. San Juan College, Farmington, New Mexico Business and Industry Training Center

38. San Juan College, Farmington, New Mexico Business and Industry Training Center

39. 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.”

40. Questions ?

41. Carolyn Lott, Area Agent Community Resource Development 1241 Mound Street, Suite E Grenada, Mississippi 38901 Phone 662-226-2061 Fax 662-227-2862