Purpose of Incubation
A business incubator is a supportive environment designed to assist start-up and early-stage companies to grow successfully. Most entrepreneurs starting a new business do not have the resources, knowledge and insights needed to launch effectively their company. Incubators can provide many services in one convenient location.
Incubator directors are an effective resource to entrepreneurs faced with everyday start up challenges. They help businesses to stay on track and can quickly connect with other needed resources within the local community. Furthermore, companies in an incubator often work together to support and learn from each other.
Services offered at a typical Incubator are:
- Pro-active local support from area businesses including retired executive serving as advisor
- Access to critical multimedia tools, information, contacts and services which may otherwise be inaccessible or unaffordable to start-up entrepreneurs
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Shared resources such as lobby and reception areas, meeting rooms, copy and fax equipment, internet access, audio visual equipment, clerical services and kitchen facilities
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Private offices, cubicles, lab or manufacturing spaces
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Access to business and technical advice and introductions to a range of qualified service providers, potential mentors and financial resources
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An organized program of training, one-on-one counseling and mentoring to assure succes.
Business incubators will:
- Increase the likelihood of business success during the first critical years
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Significantly reduce “time to launch” for many companies
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Enable business owners to focus on their core product development and provide assistance with a myriad of operational matters
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Create new jobs and increase the tax base of a community
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Encourage and teach entrepreneurship within the community.
Business incubators add value:
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Incubator programs show high returns on public investment
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Incubators have high survival rates
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In 2004, 87% of incubator graduates were still in business
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Community tax contributions exceeded nine million dollars
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Businesses in incubator programs produce substantial increases in average annual sales and full-time job.
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Most incubator firms provide employee benefits and livable wages.