Compelled by what’s been erected along the main drag through town? East Central Minnesota has a new business incubator and it’s location is superb at corner of the busiest two cross streets in Pine City, Main Street and County Road 7 (Hillside Avenue).
According to a fact sheet put out by Pine Technical College, business incubators are meant to nurture the development of entrepreneurial companies, helping them survive and grow during the start-up and expansion periods, when they are most vulnerable. These programs provide their client companies with business support services and resources tailored to young and growing firms. The most common goals of incubation programs are creating jobs in a community, enhancing a community’s entrepreneurial climate, retaining businesses in a community, building or accelerating growth in a local industry, and diversifying local economies.
Incubators are a combination of a physical facility and the services provided. Often the rent is reduced for the first one-to-three years of occupancy for a business locating in the incubator, and the services initially are either free or at a reduced price. There are over 1,400 incubators in North America, and the strategy originated in the late 1970s.
Do they work?
- The National Business Incubation Association (NBIA) estimates that, in 2005 alone, North American incubators assisted more than 27,000 start-up companies that provided full-time employment for more than 100,000 workers and generated annual revenue of more than $17 billion.
- Business incubators reduce the risk of small business failures. Historically, NBIA member incubators have reported that 87 percent of all firms that have graduated from their incubators are still in business. The usual success rate for new companies is only about 50%, according to the Small Business Administration.
- NBIA members have reported that 84 percent of incubator graduates stay in their communities.
- A study by the U.S. Department of Commerce shows that incubators provide up to 20 times more jobs than community infrastructure projects such as industrial parks. The U.S. Economic Development Administration rates incubators as their most effective investment in terms of job creation.
What is the Pine Innovation Center? Continue reading