Economic & Community Development
Incubator Services
The SBTDC assists local community governments and non-profit organizations in the process of establishing a business incubator in their area. Most of the SBTDC's involvement includes: educating individuals, organizations, and communities on the concept of business incubation; facilitating strategic planning workshops with project steering committees; and conducting feasibility studies.
What is a business incubator?
A business incubator is an environment that grows and nurtures small businesses through their early years of existence by providing an array of business assistance services, shared resources, and networking opportunities. There are 31 business incubators in North Carolina.
Click here to see a map and list (with contact information) of North Carolina's 31 incubators.
In most instances, an incubator is an actual building housing several small business tenants. Business incubators fall into one of four categories:
- Industry Specific (focusing assistance on industries such as technology, manufacturing, service);
- Empowerment (concentrating on assisting women- or minority-owned firms);
- Targeted (serving businesses with particular market niche products or markets in common like arts, food processing, multi-media); or
- Mixed-Use (serving a variety of businesses types).
Incubator facilities are run by managers and staff who provide business advice and referral services to tenants in addition to managing the operations of the building. Office or laboratory space is often leased at an affordable rate with flexible terms. In most instances, incubator businesses mature and grow out of the incubator within 3 to 5 years, creating opportunities for new firms to move in. Nearly 90% of graduates then continue their business success within the surrounding area.
Research has found that incubators produce a very good return on investment compared to many traditional economic development tools. Incubators and their graduating businesses create jobs, commercialize technology, revitalize neighborhoods, and encourage entrepreneurial development.
Incubator Research Services
The SBTDC has conducted feasibility studies for over a dozen local governments and community non-profit organizations throughout North Carolina since 1995. Our studies include:
- a history and overview of the business incubator industry nationally and in North Carolina
- an economic analysis of the incubator's projected market
- trends in regional entrepreneurship
- needs of local businesses
- project cash flow projections
- market feasibility of the project
- financial feasibility of the project
- recommendations for proceeding
- potential funding options
- risks and success factors
Click here for a detailed description of the SBTDC's incubator research services.
Other Resources
- North Carolina Business Incubator Association (910.815.0065)
- National Business Incubator Association (http://www.nbia.org)
- Appalachian Regional Commission (http://www.arc.gov/index.do?nodeId=242)
- Tennessee Valley Authority (http://www.tva.gov/econdev/busincub.htm)
For more information, contact the SBTDC at incubator.service@sbtdc.org or phone us at 919.715.7272 (or in North Carolina, 800.258.0862).