| Upcoming Events |
|
"Win-Win Negotiations"
MTI workshop Thurs. 6/26 USM Abromson Center
<click here for details> |
| Contact Us |
Maine Center for Enterprise Development
c/o Univ. of S. Maine
P.O. Box 9300
Portland, ME 04104-9300
P: 207. 228 . 8524
F: 207. 228 . 8526Street
address:
70 Falmouth St
Portland, ME 04103
(Bio-Science Building, research wing, 2nd floor)
 |
| On Site Clients |
.JPG)
|
|
Business incubators nurture the development of entrepreneurial companies, helping them survive and grow during the start-up period, when they are most vulnerable. Incubation programs provide their client companies with business support services and resources tailored to young firms.
The purpose of business incubation is to increase the success rate of start-up companies. Our client firms have raised early stage equity and debt capital, opened foreign markets, received patents from the U.S. government, engaged in R&D with university and federal laboratories, obtained financing from the federal Small Business Innovation Research program and the Maine Technology Institute, and have been recognized for innovation by Region One of the Environmental Protection Agency.
|
| What is Business Incubation?
|
|
 |
Reprinted with
Permission from the
National Business
Incubation Association |
Business incubation is a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. These services are usually developed or orchestrated by incubator management and offered both in the business incubator and through its network of contacts. A business incubator’s main goal is to produce successful firms that will leave the program financially viable and freestanding. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies.
Critical to the definition of an incubator is the provision of management guidance, technical assistance and consulting tailored to young growing companies. Incubators usually also provide clients access to appropriate rental space and flexible leases, shared basic business services and equipment, technology support services and assistance in obtaining the financing necessary for company growth.
|
Business incubators create successful companies and
reduce the risk of investment.
- Business incubators reduce the risk of small business failures. NBIA member incubators report that 87 percent of all firms that graduated from their incubators are still in business.
- Startup firms served by NBIA member incubators annually increased sales by $240,000 each and added an average of 3.7 full- and part-time jobs per firm.
The business incubation industry is experiencing unprecedented growth.
- Today there are about 1000 business incubators in North America, up from 12 in 1980.
- For-profit incubators recently began opening at the rate of nearly four per week. Many serve as vehicles for owners' investments in a portfolio of companies.
NBIA member incubators outperform their
non-member counterparts.
- NBIA member incubators served twice as many client companies and graduated nearly twice as many firms as their non-member counterparts.
Business Incubation is an economic development best value.
- For every $1 of estimated annual public operating subsidy provided the incubator, clients and graduates of NBIA member incubators generate approximately $30 in local tax revenue alone.
- NBIA members report that 84 percent of incubator graduates stay in their communities and continue to provide a return to their investors.
- Publicly supported incubators create jobs at a cost of about $1,100 each, whereas other publicly supported job creation mechanisms commonly cost more than $10,000 per job created.
- NBIA estimates that North American incubator clients and graduates have created approximately half a million jobs since 1980. That is enough jobs to employ every person living in Denver, Colo.
- Every 50 jobs created by an incubator client generate another 25 jobs in the community.
Business incubators serve a variety of communities
and markets.
- Most North American business incubators (about 90 percent) are nonprofit organizations focused on economic development. About 10 percent of North American incubators are for-profit entities; usually set up to obtain returns on shareholders investments.
- 47 percent are “mixed-use,” assisting a range of early-stage companies.
- 37 percent focus on technology businesses.
- 7 percent serve manufacturing firms
- 6 percent focus on service businesses.
- 3 percent concentrate on community-revitalization projects or serve niche markets.
|
|
|
The National Business Incubation Association is the world's leading organization advancing business incubation and entrepreneurship. It provides thousands of professionals with the information, education, advocacy and networking resources to bring excellence to the process of assisting early-stage companies. |
| Contents Copyright 2006 by NBIA. All Rights Reserved Worldwide. |
|
|
