SMALL
BUSINESS
INCUBATORS




BUSINESS INCUBATOR

VIRTUAL BUSINESS INCUBATORS

PUBLIC INCUBATOR

SMALL BUSINESS INCUBATOR RELATED TOPICS

HOW TO SET UP A BUSINESS INCUBATOR

SMALL BUSINESS INCUBATORS SET UP RELATED TOPICS

BUSINESS INCUBATION

THE NATIONAL BUSINESS INCUBATION ASSOCIATION NBIA

SMALL BUSINESS INCUBATORS LINKS



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SECTION 1



BUSINESS
INCUBATOR




Business incubators are programs designed to support the successful
development of entrepreneurial companies through an array of business
support resources and services, developed and orchestrated by incubator
management and offered both in the incubator and through its network of
contacts. Incubators vary in the way they deliver their services in
different startup ecosystems, in their organizational structure, and in
the types of clients they serve. Successful completion of a business
incubation program increases the likelihood that a startup company will
stay in business for the long term: older studies found 87% of incubator
graduates stayed in business, in contrast to 44% of all firms.

Incubators differ from research and technology parks in their dedication
to startup and early-stage companies. Research and technology parks, on
the other hand, tend to be large-scale projects that house everything from
corporate, government or university labs to very small companies. Most
research and technology parks do not offer business assistance services,
which are the hallmark of a business incubation program. However, many
research and technology parks house incubation programs.

Incubators also differ from the U.S. Small Business Administration's Small
Business Development Centers (and similar business support programs) in
that they serve only selected clients. SBDCs are required by law to offer
general business assistance to any company that contacts them for help. In
addition, SBDCs work with any small business at any stage of development,
not only startup companies. Many business incubation programs partner with
their local SBDC to create a "one-stop shop" for entrepreneurial support.

In 2005 alone, North American incubation programs assisted more than
27,000 companies that provided employment for more than 100,000 workers
and generated annual revenues of $17 billion.




The incubation process


Most common incubator services:


Help with business basics

Networking activities

Marketing assistance

High-speed Internet access

Help with accounting/financial management

Access to bank loans, loan funds and guarantee programs

Help with presentation skills

Links to higher education resources

Links to strategic partners

Access to angel investors or venture capital

Comprehensive business training programs

Advisory boards and mentors

Management team identification

Help with business etiquette

Technology commercialization assistance

Help with regulatory compliance

Intellectual property management




Unlike many business assistance programs, business incubators do not
serve any and all companies. Entrepreneurs who wish to enter a business
incubation program must apply for admission. Acceptance criteria vary
from program to program, but in general only those with feasible business
ideas and a workable business plan are admitted. It is this factor that
makes it difficult to compare the success rates of incubated companies
against general business survival statistics.

Although most incubators offer their clients office space and shared
administrative services, the heart of a true business incubation program
is the services it provides to startup companies.



More than half of all business incubation programs are "mixed-use" projects;
that is, they work with clients from a variety of industries. Technology
incubators account for 39% of incubation programs.


Business incubation has been identified as a means of meeting a variety of
economic and socioeconomic policy needs, which may include:


Creating jobs and wealth

Fostering a community's entrepreneurial climate

Technology commercialization

Diversifying local economies

Building or accelerating growth of local industry clusters

Business creation and retention

Encouraging women or minority entrepreneurship

Identifying potential spin-in or spin-out business opportunities

Community revitalization



Business incubator
http://en.wikipedia.org/wiki/Business_incubator



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SECTION 2



VIRTUAL
BUSINESS
INCUBATOR




Business incubators began in the 1950s and took off in the late 1990s
as support for startup companies who need advice and venture capital
to get their ideas off the ground. As the dot-com bubble burst, many
high-tech business incubators did so too.

Now the model of a business incubator is changing. Several of the incubator
companies who survived the dot-com bubble switched to a virtual model.

The old incubator model required a startup venture to set up shop at the
incubator's site. The virtual model, on the other hand, allows a company
to garner the advice of an incubator without actually being located at the
incubator site. This new model suits those entrepreneurs who need the advice
an incubator offers but still want to maintain their own offices, warehouses,
etc.

Several state and local governments in the United States who are working with
or creating their own virtual business incubators to attract new business.

There are several universities now offering Virtual business incubation of some
kind, with most of them offering a big library of resources, and some even
offering the use of physical facilities.



Virtual business incubator
http://en.wikipedia.org/wiki/Virtual_business_incubator






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SECTION 3



PUBLIC
INCUBATOR




A public incubator is similar to a business incubator, though its
intent is to accelerate the development of ideas for the benefit
of the public good. Many universities and non-profit organization
succeed in a goal of public good, though few if any provide a
democratic process of refinement. A public incubator incorporates
a process of citizenry, measurement, and refinement to culture
community ideas.



Public incubator
http://en.wikipedia.org/wiki/Public_incubator



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SECTION 4



SMALL
BUSINESS
INCUBATORS
RELATED
TOPICS




Bioincubator
http://en.wikipedia.org/wiki/Bioincubator

Business Support office
http://en.wikipedia.org/wiki/Business_Support_office

Kitchen incubator
http://en.wikipedia.org/wiki/Kitchen_incubator

Public incubator
http://en.wikipedia.org/wiki/Public_incubator

Science park
http://en.wikipedia.org/wiki/Science_park

Seed accelerator
http://en.wikipedia.org/wiki/Seed_accelerator



Business incubator
http://smallbusiness.com/wiki/Business_incubator




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SECTION 5



HOW
TO
SET
UP
A
BUSINESS
INCUBATOR




Business incubators function as an advisory board for start-up companies,
assist in obtaining venture funding and provide office space, office
furnishings and administrative services. In 1980, there were 12 business
incubators in all of North America, according to the National Business
Incubation Association (NBIA). By 2006, that number had grown to over
1,400, with 1,115 located in the United States and the rest evenly divided
between Canada and Mexico. Only about five percent of U.S. business
incubators are for-profit enterprises, engaged in venture investment and
incubation for the benefit of investment partnerships. Local economic
development councils or grants from universities, state governments or the
federal government fund the rest, which are nonprofits.



Instructions


1. Create your business model. A successful incubator business model reflects
the needs of the local entrepreneurial community; so, if you will be serving
entrepreneurs coming out of a school like California Institute of Technology,
specializing in technology start-ups is a good approach, though over half of
existing incubators provide what's called mixed-use incubation -- no particular
specialty. About 40 percent specialize in technology and the rest on general
business and professional services.

2. Research the benefits of creating a virtual versus a physical facility.
With online meeting and collaboration capabilities, it is easy to operate a
virtual incubator, with only occasional face-to-face meetings and required
reporting. It eliminates the cost of maintaining a building to house your
incubator clients. However, a physical presence allows the entrepreneurs to
assist each other and allows you to monitor their activities, problems and
successes.

3. Plan your business model and set up your legal identity. Your legal entity
will most likely be a corporation, and if you are going to be not-for-profit,
you can apply for that status from the Internal Revenue Service (IRS) after
you have operated as a corporation. For-profit business incubators are sometimes
organized as limited partnerships. If a group of investors owns your incubator,
it is best to employ the services of an attorney who specializes in Securities
and Exchange Commission (SEC) compliance to set up the legal framework. Innocent
violation of complex SEC rules and regulations can result in crippling fines and,
in some cases, jail time.

4. Create your legal documents. Most incubators take a percentage ownership in
the companies and also charge a monthly fee that includes office rent, furniture,
Internet access, use of office equipment, phone service, administrative help and
professional business advisory services. If you do not have a strong contract
covering all these aspects, then incubator clients who become successful may resist
paying you or giving you the stock to which you are entitled.

5. Write your business plan. You will need this to get funding either in the form
of grants or sponsorships from local governments or corporations. Economic
development organizations sponsor 31 percent of business incubators, government
entities fund 21 percent and academic institutions sponsor 20 percent, according
to the NBIA.

6. Market your incubator at networking events, angel group meetings, civic group
and chamber of commerce meetings, colleges and universities. Directly approach
venture capital firms, which often farm out portfolio companies to incubators.
These groups are good sources of referrals to entrepreneurs seeking to start
businesses, who need the assistance an incubator can provide.



Tips & Warnings


Develop good relationships with local business law firms, accounting and auditing
firms, employment agencies and investment bankers. These services will come in
handy in working with your clients and will also be good sources of referrals.

Entrepreneurs rarely have much money to spend, so resist leasing large, expensive
office space. It is better to create a virtual incubator and find meeting facilities
at local law offices and accounting firms that will offer use in exchange for
introductions to potential clients. Always conserve your money because you will never
know when your incubator clients will run out of cash or decide to close their
businesses.



How to Set Up a Business Incubator
http://www.ehow.com/how_7853445_set-up-business-incubator.html



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SECTION 6



SMALL
BUSINESS
INCUBATOR
SET
UP
RELATED
TOPICS




Types of Business Incubators
http://www.ehow.com/info_8675761_types-business-incubators.html

The Advantages of Incubators
http://www.ehow.com/info_8599282_advantages-incubators.html

How to Set Up Google for Your Business in Three Easy Step
http://www.ehow.com/video_12337331_set-up-google-business-three-easy-steps.html

How to Set Up ePrint
http://www.ehow.com/how_12308380_set-up-eprint.html

How to Set Up a Playgroup
http://www.ehow.com/how_2076922_set-up-playgroup.html

How to Set Up Siri
http://www.ehow.com/video_12339147_set-up-siri.html

How to Find a Business Incubator to Join
http://www.ehow.com/how_7489_find-business-incubator.html

Business Accelerator Vs. Business Incubator
http://www.ehow.com/facts_5903618_business-accelerator-vs_-business-incubator.html

Types of Business Incubators
http://www.ehow.com/info_8675761_types-business-incubators.html

How to Set an Incubator
http://www.ehow.com/how_7517480_set-incubator.html

How to Evaluate the Success of Business Incubators
http://www.ehow.com/how_5891913_evaluate-success-business-incubators.html

Definition of Business Incubator
http://www.ehow.com/facts_5894780_definition-business-incubator.html

Definition of an Incubator
http://www.ehow.com/about_6527675_definition-incubator.html

Traditional Business Vs. E-Business
http://www.ehow.com/facts_5903880_traditional-business-vs_-e_business.html

Business Model Vs. Revenue Model
http://www.ehow.com/info_7760925_business-model-vs-revenue-model.html

The Advantages of Incubators
http://www.ehow.com/info_8599282_advantages-incubators.html

Grants for Seed Money
http://www.ehow.com/list_6546343_grants-seed-money.html

What Are the Benefits of Business Planning?
http://www.ehow.com/info_7779736_benefits-business-planning.html



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SECTION 7



BUSINESS
INCUBATION




Many entrepreneurs don't have the space or desire to start a business
out of their home, yet find renting space and setting up essential
support functions is overwhelming financially and energy draining just
at a time when their financial resources and energy are most needed
for development of the business itself. A business incubator can be
the perfect solution for such a person.


Business incubators are designed specifically to help start-up firms.



They usually provide:

•flexible space and leases, many times at very low rates

•fee-based business support services, such as telephone answering,
bookkeeping, secretarial, fax and copy machine access, libraries
and meeting rooms

•group rates for health, life and other insurance plans

•business and technical assistance either on site or through a community
referral system

•assistance in obtaining funding

•networking with other entrepreneurs


The primary goal of a business incubator is to produce successful
businesses that are able to operate independently and financially
viable.



Business Incubation
http://www.smallbusinessnotes.com/starting-a-business/business-incubation.html



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SECTION 8



THE
NATIONAL
BUSINESS
INCUBATION
ASSOCIATION
NBIA




The National Business Incubation Association (NBIA) is the world’s
leading organization advancing business incubation and entrepreneurship.
Each year, it provides thousands of professionals with information,
education, advocacy and networking resources to bring excellence to the
process of assisting early-stage companies. An elected, voting board of
directors representing the world's leading incubators governs the
association.



What is NBIA’s mission?


NBIA advances the business creation process to increase entrepreneurial
success and individual opportunity, strengthening communities worldwide.
To accomplish this mission, NBIA serves as a clearinghouse of information
on incubator management and development issues. The association engages
in many activities that support members’ professional development,



including:


•Organizing conferences and specialized trainings

•Conducting research and compiling statistics on the incubation industry

•Producing publications that describe practical approaches to business
incubation



The National Business Incubation Association (NBIA)
http://www.nbia.org/about_nbia/



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SECTION 9



SMALL
BUSINESS
INCUBATORS
LINKS




20 Cool Business Incubators
http://www.inc.com/magazine/20100501/the-best-business-incubators.html

Bioincubator
http://www.bio-incubator.be/

Business Incubation
http://www.smallbusinessnotes.com/starting-a-business/business-incubation.html

Business Incubators
http://www.entrepreneur.com/article/52802

BUSINESS INCUBATORS
http://www.referenceforbusiness.com/small/Bo-Co/Business-Incubators.html

Business Incubators
http://www.venturechoice.com/articles/incubators.htm

Business Incubator Center
http://www.gjincubator.org/

Community Planning and Development
http://www.hud.gov/offices/cpd/economicdevelopment/toolkit/Small_Business_Incubators.pdf

Eight Reasons Startup Incubators Are Better Than Business School
http://www.forbes.com/sites/jjcolao/2012/01/12/eight-reasons-startup-incubators-are-better-than-business-school/

European Business & Innovation Center Network
http://www.ebn.eu/

Forbes ranking of incubators
http://www.forbes.com/sites/tomiogeron/2012/04/30/top-tech-incubators-as-ranked-by-forbes-y-combinator-tops-with-7-billion-in-value/

Getting Started With Business Incubators
http://www.entrepreneur.com/article/52802

Grants to Start Business Incubators
http://smallbusiness.chron.com/grants-start-business-incubators-15888.html



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The Green Business Incubator (GBI)
http://thegreenbi.com/

How to Choose a Business Incubator
http://smallbiztrends.com/2012/04/choose-startup-business-incubator.html

Kickstarter
http://www.kickstarter.com/

NECT Jobs
http://nectjobs.com/

Small Business Incubator
http://www.gaebler.com/small-business-incubator.htm

Small Business Incubators
http://www.ndc-mn.org/incubators

SMALL BUSINESS INCUBATORS
http://www.municipaltoolkit.org/UserFiles/Reese_EN.pdf

Small Business Incubators, Community Development, and the Church
http://kengcrawford.com/synchronous-life/ministry-coach/small-business-incubators-community-development-and-the-church/

UK Business Incubation (UKBI)
http://www.ukbi.co.uk/

United Nations Industrial Development Organization (UNIDO)
http://www.unido.org/

Virtual Business Incubation
http://www.clever-x.com/business-growth/virtual-business-incubation-benefits-ballast/

A "virtual business incubator"
http://brainfoodtogo.com/Home/BeAPatron/PatronTypes/EDOs

Virtual business incubator
http://www.slideshare.net/VRyzhonkov/virtual-business-incubator-how-it-works

Virtual Business Incubator Framework
http://worldbusinessincubation.wordpress.com/2014/03/24/virtual-business-incubator-framework/

What Are Small Business Incubators?
http://business.laws.com/small-business/small-business-incubators



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