Business incubators proving popular in difficult times

Peter Dinham
Monday, 23 March 2009 18:18

IT Industry - Deals

He says business incubators are set up to boost the potential of entrepreneurial companies through flexible office space and the support they receive from incubator management and the network of contacts associated.

The Sunshine Coast Innovation Centre began its incubator program in 2002 and Graham says it has helped more than 50 companies, primarily in the IT, creative and green-technology sectors, through the introductory and growth stages of their development since then, creating over 300 jobs.

“Business incubators also assist associate or virtual clients by providing them with similar services, without those companies being based on the premises.”

Graham says that according to the National Business Incubation Association, there is no doubt that business incubators are a great investment and that public sector support for them pays off.
 
“Their study showed that for every $1 in estimated public operating subsidy to an incubator, its graduate and current companies generated approximately $30 in local tax revenue alone. They also significantly reduce the risk of small business failure, as the success rate of companies who complete the business incubation program is about 87 percent.”

Graham says the Sunshine Coast’s own business incubator has recently expanded to accommodate more established companies as part of their business accelerator.