Many states offer business incubator programs. But, what exactly is a business incubator and why should a new business owner consider it?
Business incubators are âorganizations that support the entrepreneurial process, helping to increase survival rates for innovative startup companies. Only entrepreneurs with feasible projects are admitted into the incubators, where they are offered a specialized menu of support resources and services. The resources and services open to an entrepreneur include: provision of physical space, management coaching, help in making an effective business plan, administrative services, technical support, business networking, advice on intellectual property and sources of financing. The incubation process is intended to last around 2-5 years.â?(Wikipedia)
According to the National Business Incubation Association:
(1) There are about 1,000 business incubators in North America.
(2) Most North American business incubators (about 90 percent) are nonprofit organizations focused on economic development. About 10 percent are for-profit entities, usually set up to obtain returns on shareholders investments.
(3) Business incubators reduce the risk of small business failures. Historically, the survival rate for a company that successfully completes an incubator program is approximately 85%.
Many States have designed their own business incubator programs to support business within their borders. For example, Wyoming is set to open a new business incubator which will focus on entrepreneurs with high-tech ideas. The Wyoming Technology Business Center is scheduled to open in June 2006 and will provide educational and mentoring programs, tenant space and business services, including a technology center to support companies with specific high-tech needs.