Frequently
Asked Questions
Answers to Frequently Asked Questions
What is business incubation?
Incubators nurture young firms, helping them to survive
and grow during the start-up period when they are most vulnerable.
Incubators provide hands-on management assistance, access
to financing, and exposure to critical business or technical
support services. They also offer entrepreneurial firms
shared office services, access to equipment, flexible leases,
and expandable space — all under one roof.
What does a business incubator do?
Business incubators nurture young firms, helping them to
survive and grow during the start-up period when they are
most vulnerable. Business incubators provide entrepreneurs
with hands-on management assistance, access to financing,
exposure to critical business or technical support services,
and business networking opportunities. They also offer entrepreneurial
firms shared office services, access to equipment, flexible
leases, and expandable space in a "one stop shop".
What is the purpose of a business incubator?
The primary purpose of a business incubator is to create
the innovation environment that produces successful business
startups. An effective business incubation program aims
to:
Increase the likelihood of business success during the first
critical years
Significantly reduce to "time to launch" for many
companies
Enable business owners to focus on their core product development
and provide assistance with a myriad of operational matters
Commercialize research results
Create new jobs and increase the tax base of a community
Encourage and teach entrepreneurship
Why should I support business incubators?
Simply stated, they work. According to national statistics,
30% of incubator clients typically graduate each year. According
to the Impact of Incubator Investments Study, 1997, 87%
of incubator graduates remain in business. Less than one
in four businesses that start outside of an incubator survive
for five years.
What are the social and economic benefits
of a business incubator?
Business incubators add value in many different ways.
A recent study of incubator companies across the U.S. during
the period 1990 through 1996 reports impressive results:
Incubator programs show high returns on public investment:
In 1996, incubators showed a return of $4.96 for every $1.00
in subsidies
High survival rates: In 1996, 87% of incubator graduates
were still in business
Community contribution: In 1996,
- 84% of graduates were still in the same community
as their incubators
- The businesses in the incubator programs produced substantial
increases in average annual sales and full-time jobs
- Most incubator firms provide employee benefits
Why would a new business want to locate in
a business incubator?
Most new businesses have strengths in a specific area,
along with a great deal of passion from its founder(s).
What they generally lack is experience in the basics of
running a business and the infrastructure – from fax
machines to telephone systems – to make things work.
VITEC2 can give these bold new companies structure, credibility,
access to knowledge, infrastructure, and contacts that are
necessary for the businesses to take root.
How do I Join VITEC2?
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