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Business incubator. The Case for Business Incubation In NW Georgia. NW Georgia Economy. Employment 16,240 jobs lost from 2008-2012 Population 14,282 new residents added in the same period Unemployment Rate

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business incubator

Business incubator

The Case for Business Incubation

In NW Georgia

nw georgia economy
NW Georgia Economy
  • Employment
    • 16,240 jobs lost from 2008-2012
  • Population
    • 14,282 new residents added in the same period
  • Unemployment Rate
    • Recent gains do not account for existing residents that dropped out of labor market or new residents yet to join in
economic rankings
Economic Rankings
  • Dalton and Rome ranked 12th and 13th, respectively, of 14 GA MSAs in Total Job Growth – YourEconomy.org
  • Rome and Dalton rank 352 and 364, respectively, out of 380 MSAs for Economic and Job Growth – Area Development Magazine
incubation faqs
Incubation FAQS
  • The average five-year survival rate for incubation graduates is 75%, compared to the national average of 50-60%
  • Incubation programs produce on average four graduates per year
  • An average incubator after five years of operation has 17 resident clients, 32 affiliates, and 55 graduates
  • 73% of incubation graduates stay in the area
  • Communities hosting successful incubators range in size from 4,149 people to 22 million
business incubator defined
Business Incubator Defined
  • Key Distinction
    • A Business Incubator Program IS NOT A Business Incubator
  • One must exist for the other to thrive
business incubation program
Business Incubation Program:
  • A program designed to accelerate the development of entrepreneurial firms though an array of business support resources and services, developed and/or orchestrated by incubator management, delivered both by incubator staff and through its networks of outside service providers.
  • Business incubation programs usually provide client firms access to shared basic services and equipment, improved access to capital and business management training.
  • Source: Incubating Success. EDA. 2011
business incubator1
Business Incubator:
  • A multitenant facility with on-site management that directs the business incubation program.
  • An incubator facility provides client firms appropriate rental space and flexible leases.
  • Co-locating entrepreneurial firms in a business incubator facility creates more opportunities for clients to network, share experiences and operate in a supportive atmosphere conducive to creating successful firm outcomes.
  • Source: Incubating Success. EDA. 2011
success factors
Success factors
  • Targeted business assistance aimed at meeting the needs of early stage businesses
  • Program goals
  • Management practices
  • Services provided
  • Operational structure
  • Advisory board composition
  • Other factors
program goals
Program Goals
  • Primary Goals:
    • Job Creation
    • Fostering entrepreneurial climate in the community
  • Others:
    • Industrial diversification
    • Targeted industries
    • Neighborhood improvement
    • Targeted groups: Women, minorities, disabled
management practices
Management Practices
  • Written mission statement
  • Written marketing plan
  • Plan for financial sustainability
  • Review of client needs at entry
  • Effective entry and exit criteria
  • Select clients based on cultural fit and potential for success
  • Introduce clients to community and funders
  • Provide pre- and post-incubation services
  • Track outcomes and budgets
services provided
Services Provided
  • Business basics
  • Presentation and business etiquette
  • Managing a new enterprise
  • Investment capital
  • Accounting and legal services
  • E-commerce assistance
  • Networking and marketing assistance
  • Strong mentoring program
  • Strong support from local higher education
  • Administrative services
  • Broadband Internet
  • Production assistance and product development
operational structure
Operational structure
  • Nonprofit models predominate
  • Budgets and finances
    • Robust payment plan for rent and service fees
    • Majority of revenue from client rents and service fees
    • Some level of subsidy to be expected
    • Larger budgets allow provision of more services
  • Staffing
    • Smaller staff-to-client ratios
    • Competent staff with dedicated resources –and time- to service the incubator
advisory board composition
Advisory Board Composition
  • 8 to 20 individuals
  • Incubator graduate firm
  • Technology transfer specialist
  • Experienced entrepreneur
  • Accountant (preferably CPA)
  • Legal and Intellectual Property assistance
  • Government representation
  • Financial institution representative
  • University official
  • Chamber of Commerce
  • FIRE
key findings eda nbia
Key Findings: EDA/NBIA
  • No one service is silver bullet, synergy is key
  • Most incubators are not for profit
  • Public sector investment is important
  • Incubator program outcomes are not tied to the growth or size of the host region’s economy
  • Measures of a host region’s capacity to support entrepreneurship have a limited effect on outcomes
  • Business incubation best practices are highly correlated to incubator success
key findings arc nbia
Key Findings:ARC/NBIA
  • Best practices for rural and urban incubation programs do not differ.
  • There are unique challenges to operating a rural incubation program
  • The most successful incubation programs have developed regional networks.
  • Location in a rural or urban area does not determine the potential for incubator success. Rather, program policies and procedures influence program success the most.
burson center carrollton
Burson Center, Carrollton
  • Owned and Operated by Carroll Tomorrow
  • 24,454 SF Facility houses 23 offices and 5,000 SF warehouse space, 2,000 SF conference room
  • Serves six counties
  • 103 graduates, 392 jobs since 2006 opening
  • Business clients have 88% success rate
  • Funding: