Business Incubators. Does Your Town Need One?
Everybody seems to be on the kick of business incubators. I see them everywhere, even talks of virtual ones. Anything to get in the game, even though there is no concept of funding or a way of supporting this new venture, for well, new ventures...
It seems every small town in America, every city and now every university wants to be a part of the movement. What's interesting is that the very people that the incubators are supposed to serve, are the means for the growth for the incubators themselves, as every town or school tries to get in the game! In other words everyone has to have one or it seems like they are not at the best practice--never mind figuring out if you need one or really if the community needs one. Its almost if you don't have a business incubator than you aren't really engaged in economic development. In hospital business we have a term for jumping on the newest bandwagon just to be sure you're doing it--which we call the "flavor of the day". This tempo to open these things is so weird it's hard to get a handle on it.
Recently a statewide community development group sent out an email to all municipalities on whether each town had a business incubator, as they were going to do a story on them. I could see the panic as everyone thought OMG! we don't have one so we are old school! This email was sent in November, and one town responded they were going to open one in May. I guess the answer for that town was no we don't have one, but hold-up! Wait we will, we will! But as I stated, everyone wants to be in the game--even the ones who aren't but now wish they were, so instead of answering the question, which is "no", they throw out yes! Yes! We are--next year, I think... Oh yeah, in May!
Here's the real point. I hate to say this as it is going to flabbergast some town developers, but--not everyone needs one. Saying you have one does not make you the place to be. Not every entrepreneur needs one. Not every entrepreneur wants one either. Sorry.
What communities can do is support new business development in meaningful ways. Instead of spending all that money to say you have an incubator, develop other meaningful ways to support small business development, on their behalf. Things like diverting business license fees or taxes for new ventures. Offer start up kits to connect non-competing successful business owners as mentors. You don't always need an incubator, but it may be helpful if you could make a phone call for assistance. Give a free year membership to the local chamber to help build relationships. Develop a group of business owners to meet monthly or quarterly with city officials to understand the needs of these small business owners and what might be helpful to them. Don't try and figure out what you think they need--ask them what they need.
Every city and small town is scrambling to be on the cutting edge and out front with tools and ideas copied from everyone else's model. Business incubators are the current buzz ,so understandably everyone wants in the game. Incubators may be the best model, but before you jump in the game consider the needs of your community based on what makes realistic sense. How many new business applications do you actually have? Do they make economic sense? Are there more meaningful ways you can encourage strong small business development other than an incubator? Is the real market going after the development of meaningful business development and growth, or going after an incubator to teach small business development? The goal and bottom line is to develop a way to actively and meaningfully support small business growth and development. An incubator may do that, but having started almost a dozen businesses in half a dozen states I can say not one single time would I have used an incubator. Would I really needed was a way to network in a meaningful way. I needed incentives--plain simple breaks to reduce start-up costs. To get maximum exposure with minimum investment in membership dues, taxes, fees, and initial deposits.
Instead of building an incubator help me in other ways to promote networking, offer fee reductions, meet to listen to my needs, and then for the areas I need help with, coordinate a rapid response to connect and really help. Small businesses usually start with a dream of bigger things. An opportunity to take an idea or concept and make it happen. I giant step to break away from traditional employment and be your own boss. It's exciting and motivating, but sometimes you just needs a little help to get going. As a city or community or small town there are a multitude of things you can do to take that dream and help get things started. Not every dream needs a full-fledged incubator. Nice to have one, but really, nice for who?
