An Introduction To Developing An Urban Business Incubator

Designed to provide a brief overview of the considerations involved in establishing a small business incubator, this guide presents information on incubator classification, funding methods, incubator operation techniques, and two-year college involvement in the formation of a working business incubator. Part 1 describes a small business incubator as a facility which provides an opportunity for new and existing small businesses to reduce some of the risk involved in operating through shared services, reasonable rent, access to administrative support services, and access to management, financial, and technical assistance. The differences between public/not-for-profit, private, academic-related, and public/private incubators are noted. Part 2 describes the phases in the creation and development process, including information on the establishment of a coordinating team and the conduct of a feasibility study. In part 3, financial considerations are reviewed, and a list of possible funding sources is provided. Part 4 lists the community/junior colleges currently associated with business incubators, and the North Carolina community colleges in the process of developing centers. This section also notes the services that community colleges can provide to developing businesses. In part 5, implementation concerns are discussed, including site acquisition, fund raising, "incubators without walls," tenant graduation, data collection needs, marketing, and the roles of the incubator manager, advisory committee, and anchor tenants. Appendixes contain a list of services incubators should provide, a sample application form for incubator tenants, a bibliography of 67 selected resources, and suggested materials for an incubator library. (AYC)