WHAT ARE BUSINESS INCUBATORS?
Business incubators nurture the development of entrepreneurial companies, helping them 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 and affordable space – all under one roof.
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 programs 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 operation matters
*Commercialize research results
*Create new jobs and increase the tax base of a community
*Encourage and teach entrepreneurship
WHY DO I NEED 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. At the University of Toledo Incubator, we can give you structure, credibility, access to knowledge, infrastructure and contacts that are necessary for the businesses to take root. We can also give you access to university students and faculty, and to potential investors.
HOW DO BUSINESS INCUBATORS DIFFER FROM SBDCs?
The U.S. Small Business Administration administers the Small Business Development Center (SBDC) program to provide general business assistance to current and perspective small business owners. SBDCs (and similar programs) differ from business incubators in that they do not specifically target early-stage companies; they often serve small businesses at any stage of development. Some business incubators partner and share management with SBDCs to avoid duplicating business assistance services in a region. At the University of Toledo, the MTSBDC (Manufacturing and Technology Small Business Development Center) is located at the incubator.
WHY DO SO MANY SMALL BUSINESSES FAIL AND HOW CAN AN INCUBATOR HELP?
According to the SBA, 50% of small businesses fail in the first three to five years. Studies show that the top two reasons for failure are management inexperience and insufficient capital. Other reasons small business fail include:
*Inadequate planning
*Lack of market knowledge
*Failure to seek the advice of a professional
*Failure to seek advice of other people with experience in their business
*Lack of financial planning and review
Business incubators work with entrepreneurs to abate risk, to solve problems faster, to shorten the learning curve, and to improve their likelihood of success. And it works! According to a Dept. of Commerce sturdy, 87% of all small businesses who had been through a business incubator were still in business after 5 years.
DO I HAVE TO MOVE INTO THE INCUBATOR?
We have both resident and non-resident clients. Non-residents, or affiliates, are companies who need strategic guidance and business assistance, but do not need space.
IS THE INCUBATOR FOR UNIVERSITY FACULTY, STAFF AND STUDENTS ONLY?
No. The Incubator Program is open to all start-up enterprises with a technology-based product or service.
IS IT POSSIBLE TO VISIT THE INCUBATOR?
Yes, please contact Megan Reichert-Kral, Director (419-530-3805) (megan.reichert@utoledo.edu) or Diane Miller, Assistant Director (419-530-3804) (diane.miller2@utoledo.edu) to arrange a visit.