As the economic climate hits a new low, one of Australia’s business incubator groups reckons that as businesses scale down we’re likely to see more of what they call ‘forced entrepreneurship’, where those employees made redundant seize the opportunity to put a long held new business idea into practice.

The CEO of the Sunshine Coast’s Business Accelerator  Innovation Centre, Colin Graham, says a new publication by the US based National Business Incubation Association (NBIA} highlighted the value of business incubators in a number of areas, including:

• Incubator subsidies by government pay off through the client companies generating local tax revenue
• Incubators reduce the risk of small business failure
• Incubators are part of a larger value chain, adding value to the local business community, and
• Incubators enhance economic development in a region
 
According to Graham, in the current economic conditions, with many people being made redundant, there would be more ‘forced entrepreneurship’ beginning.
 
“It is often the case that people, who have been thinking about a particular business idea for a long time, may see being made redundant as their chance to get started.”

Graham says the business incubation program proves the success of centres such as the Innovation Centre and highlights the need for business incubators in a tough economic climate, with many people forced into redundancy considering starting their own business.
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