What is a business incubator?

What is a business incubator?

• It is a business that provides advice, equipment, temporary premises, or other facilities to those starting up a business and lacking in capital.

What is the purpose of a business incubator?

• A Business incubator is established to develop and implement a strong microenterprise development program that addresses the needs of the low to moderate income residents and provides access to loan capital, business support, training, technical assistance and follow-up services. An incubator works with existing small business owners to strengthen and sustain this sector as well. Most cities recognize the potential positive and significant impact that the development of micro and small business enterprises has on economic development.

What Services would a Business Incubator provide?

• The Business incubator would operate under the office of the CRA, providing: – Training workshops– Technical assistance– Business support– Loan application and approval process– Loan disbursements and collections– On-going business monitoring.

What Services would a Business Incubator provide?(cont.)

• The Small Business Incubator will offer opportunities for the next step of growth, offering services such as:– Marketing, – bookkeeping, – business coaching– office/conference space for client meetings– office equipment that would otherwise not be

affordable.

What Services would a Business Incubator provide?(cont.)

• Non-clients will also have the opportunity to take advantage of this planned facility, in a virtual way. Training will be offered to incubator businesses and on-site staff will be there to assist.

What role would the Incubator play in Job Placement?

• The business incubator would include a job placement center that will begin with a community assessment of existing resident’s job skills, potential job opportunities and skills training being provided in Miami Dade County. The Center will act as a clearinghouse of information as well as provide job seekers with some assessment and skills training and placement.

The need for an incubator in North Miami

• Many ‘would be entrepreneurs’ in North Miami do not have the technical know-how to turn their dreams into reality. Others don’t really know how to navigate the bureaucracy that everyone has to navigate in order to open and run a successful business in this country. A business incubator can provide ideas, start-up space and technical support to new entrepreneurs as well as established businesses.

Types of Business Incubators

• There are 4 main types of Business Incubators: Local Economic Development Incubators, Academic and Scientific Incubators, Corporate Incubators, & Private Investors’ Incubators.

• The North Miami CRA is interested in establishing the first type, a Local Economic Development Incubator.

Local Economic Development Incubator Model

Goal Non-profit

Objectives

· job creation · re-industrialisation / revitalisation · economic development · support to particular target groups or industries

· development of SMEs and clusters

Targets· small commercial craft or service companies

· in some cases, high-tech companies

Offering

· hosting and shared services · administrative assistance · consulting

Eventually:· coaching, training, networking· access to financing

Key Problems

· durability – lack of stability of resources

· quality of management and services provided – highly dependent on the quality of the manager

· governance, risk of conflicts about the objectives, bureaucratic red-tape, time spent in negotiating with different partners

Trends· regular development · increasing territorial coverage

Incubator Examples: • Tools for Change: Black Economic Development

Coalition Inc.

• Metro Broward: The Small Business Success Catalyst

• International Enterprise Development Inc.

Tools for Change: Black Economic Development Coalition Inc.

Metro Broward: The Small Business Success Catalyst

International Enterprise Development Inc.

A business incubator will:• Help revitalize a corridor• Create jobs • Establish new businesses • Make established businesses more

successful• Increase the tax base of the City

What is a business incubator?

Documents

Transcript of What is a business incubator?