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

3. BUSINESS INCUBATORS History Batavia, N.Y. –1959Batavia, N.Y. –1959 U.S. Small Business Administration- 1984-1987U.S. Small Business Administration- 1984-1987 1985-National Business Incubation Association formed1985-National Business Incubation Association formed Source: National Incubator Association

4. NBIA National Business Incubator Association 800Nationwide

5. PURPOSE To nurture young firmsTo nurture young firms Create new jobsCreate new jobs Produce successful graduatesProduce successful graduates

6. National Business Incubator Association SURVEY 87% of incubated firms remain in business87% of incubated firms remain in business Business incubation programs invest $1,109 to create each jobBusiness incubation programs invest $1,109 to create each job Approximately 84% of the firms remain in their communityApproximately 84% of the firms remain in their community

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

8. MENU Cont’d Shared resources-receptionist and office personnel, fax machines and copiers …..Shared resources-receptionist and office personnel, fax machines and copiers ….. Relationships with financial institutions and venture capitalists and other investorsRelationships with financial institutions and venture capitalists and other investors Fitness roomFitness room Conference room, etcConference room, etc

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

10. BEST PRACTICES cont’d Developed effective network of localDeveloped effective network of local business service providers and other business service providers and other resource resource Evaluates the contributions of members ofEvaluates the contributions of members of its service network providers its service network providers Highly visible and viewed as the premier entrepreneur service organizationHighly visible and viewed as the premier entrepreneur service organization Source: National Incubator Association

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

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

13. OBSTACLES cont’d Lack of full-time staff dedicated to the incubatorLack of full-time staff dedicated to the incubator Inability to follow up with clients to address issues.Inability to follow up with clients to address issues. Difficulty recruiting clientsDifficulty recruiting clients Difficulty getting entrepreneurs to participate in educational programsDifficulty 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 Plan Oxford, Batesville, Grenada

34. Source: National Incubation Association

35. Source: National Business Incubation Association

36. Source: National Business Incubation Association Source: National Incubator Association Source: National Business Incubation Association Source

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

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

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

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

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

44. 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.”

45. Questions ?

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