Phyllis G. Queen Business Consultant for TFCE

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Phyllis G. QueenBusiness Consultant for TFCE

• on
• Business Incubator/
• Innovation Center

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Business Incubator(National Business Incubation
Association)

• Business incubators are instrumental in
  accelerating the success of entrepreneurs with
  the start-up of new or fledgling companies.

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Different Types of Business Incubators(National
Business Incubation Association)

• Non-profit (94)
• For-profit (6)
• Made up of
• Technology (39)
• Manufacturing (3)
• Mixed (54)
• Specialty or Niche Markets (4)

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Operators/Sponsors of Business Incubators (NBIA)

• Economic Development Organizations (31)
• Government Entities (21)
• Academic Institutions (20)
• Hybrids (8)
• For-profit Entities (4)
• Other Types of Organizations (8)
• No Sponsor (8)

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Types of Services

• Business Basics Assistance
• Marketing Assistance
• Technology Assistance
• Networking Activities Assistance
• Financial Management Assistance
• Regulatory Compliance Assistance

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Types of Services (cont.)

• Assist with Access to Capital
• Access to Internet Services
• Access to Higher Education Resources
• Assist with Presentation Abilities
• Access to Business Training Programs
• Assistance with Intellectual Property

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Asheville-Buncombe Technical Community
CollegeBusiness Incubation Program

• Business plan must be submitted
• 2 year term in program
• Submit to open book accounting
• Complete four business seminars
• Attend monthly tenant meetings
• Pay rent

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Asheville-Buncombe Technical Community
CollegeStudent Business Incubation Program

• 12 month extracurricular activity
• 4 student run businesses selected each year
• Requirements same as for businesses
• except
• Maintain student status
• College community event participation

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Ben Craig Center (UNC Charlotte)

• Graduated 102 companies (as to date)
• 80 financially viable at graduation
• (avg. 3-5 yrs. incubation stay)
• Client base is
• 44 Technology
• 39 Service oriented
• 17 Product sales

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Nussbaum Center for Entrepreneurship(Greensboro,
NC)

• Graduated 130 businesses
• 80 success rate
• Over 1200 jobs have been created
• In 2005 alone, 125 million in revenue and 4
  million in tax revenue added to local economy.

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Fayetteville N.C. Business Center(in partnership
with Fayetteville State University)

• Hands-on approach
• Flexible space in which to grow
• Marketing assistance
• Special topic seminars

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So, Why a Business Incubator/Innovation Center
for Robeson County?
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2005 N.C. Statistics (Department of Commerce)

• New business start-ups 25,906
• Business failures 22,867
• 3,039 difference
• 88 - failure
• 12 - success
• https//edis.commerce.state.nc.us/docs/stateCompar
  ison/NC_NC.pdf

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Loss of Jobs (N.C.)(Bureau of Economic Analysis)

• Manufacturing jobs lost between July 2007 July
  2008 totaled approx. 18,000.
• Construction jobs increased from July 2007
  July 2008, creating approx. 1,900 jobs.
• What happened to the other 16,100 people who lost
  their jobs?

• Quite simply, the states rural economies are
  not creating enough high- and middle income jobs
  to meet all of their local employment needs. For
  some workers, the option is to settle for
• underemployment or no employment.

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North Carolina Unemployment (According to U.S.
Department of Labor)

• Unemployment rate 6.6 as of July 2008
• .7 increase from June 2008 July 2008
• 1.9 increase from July 2007 July 2008

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N.C. Annual Unemployment Rate 1995-2005(N.C.
Commission on Workforce Development)
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N.C. Robeson County Unemployment
Rates1994-2003(N.C. Employment Security
Commission)
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Statistics(U.S. Dept. of Labor)

• Unemployment in September 2007

Robeson County    6.1
North Carolina   4.7
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Statistics (cont.)(U.S. Census Bureau )

• of families living below poverty level in 2006

Robeson County 25.5
North Carolina  15.1
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Statistics (cont.)(U.S Census Bureau)

• Median household income in 2006

Robeson County 29,195
North Carolina 40,729
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PER CAPITA PERSONAL INCOME(Bureau of Economic
Analysis)

• In 2006 Robeson had a per capita personal
  income (PCPI) of 21,675. This PCPI ranked 99th
  in the state and was 67 percent of the state
  average, 32,247, and 59 percent of the national
  average, 36,714.
• http//www.bea.gov/regional/bearfacts/action.cfm?f
  ips37155areatype37155yearin2006

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Business Incubation Success

• Historically 87 Success Rate (Nationally)
• (National Business Incubation Association)
• Every 50 jobs created by an incubator client
  generate another 25 jobs in the community.
• (National Business Incubation Association)
• 88 of NC incubator graduates remain in close
  proximity of the incubator and continue to
  contribute to the community economy.
• (NC Technological Development Authority, Inc.)

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Effectiveness of an Incubator as an Economic
Development Tool

• Stimulates entrepreneurship
• Potential to build community wealth
• Create new jobs
• Increase community tax base
• Community revitalization

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In Summary

• In light of the information provided, we see
  that a business incubation program has proven to
  be a successful tool in improving the economic
  status of a community.
• Since 52 of Americans work in a small business
  setting (between 1 499 workers), it is proven
  to be a continuing source of vitality for our
  economy producing ¾ of the economys new jobs
  between 1990-1995. http//economics.about.com/od/s
  mallbigbusiness/a/us_business.htm
• So, considering the facts presented, we should
  do all we can to see new businesses succeed in
  order to sustain/improve the economy?

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Plans of TFCE

• Academic institutions
• Local organizations
• Lending institutions
• Seek funding

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QUESTIONS?