The NpA Incubator: Executive Summary & Start-Up Budget 2018

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Turning the Improbable
Into the Exceptional!
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Executive Summary
& Start-Up Budget
NpA Incubator – Community Engagement and Mobilization
The Transformative Justice Project
Introduction
The NpA Incubator
The NpA Incubator was established to help new, startups, and
existing organizations to form and grow by providing services
such as organizational development training, capacitybuilding,
community engagement expertise and much
more.
The National Business Incubation Association (NBIA)
defines [such] incubators as a catalyst tool for either
regional or national economic development. NBIA
categorizes their [own] members’ incubators by the
following five incubator types: academic institutions; nonprofit
development corporations; for-profit property
development ventures; venture capital firms, and [various]
combinations of the above.
[Such] incubators differ from research and technology parks in their dedication to startup
and early-stage [organizations]. Research and technology parks, on the other hand,
tend to be large-scale projects that house everything from corporate, government or
university labs to very small companies. Most research and technology parks do not
offer business assistance services, which are the hallmark of business incubation
programs. However, many research and technology parks house incubation programs.
Incubators also differ from the U.S. Small Business Administration's Small Business
Development Centers (and similar business support programs) in that they serve only
selected clients. SBDCs are required by law to offer general business assistance to any
company that contacts them for help. In addition, SBDCs work with any small business
at any stage of development, not only startup companies. Many business incubation
programs partner with their local SBDC to create a "one-stop shop" for entrepreneurial
support.
Within European Union countries there are different EU and state funded programs that
offer support in form of consulting, mentoring, prototype creation and other services and
co-funding for them. TecHub is one of examples for IT companies and ideas.
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History
The formal concept of business incubation began in the USA in 1959 when Joseph L.
Mancuso opened the Batavia Industrial Center in a Batavia, New York, warehouse.
Incubation expanded in the U.S. in the 1980s and spread to the UK and Europe through
various related forms (e.g. innovation centers, pioneers enterprises,
technopoles/science parks).
The U.S.-based International Business Innovation Association estimates that there are
about 7,000 incubators worldwide. A study funded by the European Commission in
2002 identified around 900 incubation environments in Western Europe.
As of October 2006, there were more than 1,400 incubators in North America, up from
only 12 in 1980. Her Majesty's Treasury identified around 25 incubation environments in
the UK in 1997; by 2005, UKBI identified around 270 incubation environments across
the country.
In 2005 alone, North American incubation programs assisted more than 27,000
companies that provided employment for more than 100,000 workers and generated
annual revenues of $17 billion.
Incubation activity has not been limited to developed countries; incubation environments
are now being implemented in developing countries and raising interest for financial
support from organizations such as UNIDO and the World Bank.
Types of Services
Since startup companies lack many resources, experience and networks, incubators
provide services which helps them get through initial hurdles in starting up a business.
These hurdles include space, funding, legal, accounting, computer services and other
prerequisites to running the business.
Among the most common incubator services are:
Help with business basics
Networking activities
Marketing assistance
Market Research
High-speed Internet access
Help with accounting/financial management
Access to bank loans, loan funds and guarantee programs
Help with presentation skills
Links to higher education resources
Links to strategic partners
Access to angel investors or venture capital
Comprehensive business training programs
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Advisory boards and mentors
Management team identification
Help with business etiquette
Technology commercialization assistance
Help with regulatory compliance
Intellectual property management
Types
There are a number of business incubators that have focused on particular industries or
on a particular business model, earning them their own name.
This list is incomplete:
Virtual business incubator - online business incubator
Kitchen incubator - a business incubator focused on the food industry
Public incubator - a business incubator focused on the public good
Seed accelerator - a business incubator focused on early startups
Corporate accelerator - a program of a larger company that acts akin to a seed
accelerator
Startup studio - a business incubator with interacting portfolio companies
Hybrid Incubator - A business incubator that combines virtual incubator with onpremise
activities
Industry Sectors Intentionally Supported By Incubation Programs
Technology Creative industries Construction
Computer software eBusiness / eCommerce Arts
Services/professional Wireless technology Aerospace
Manufacturing Healthcare technology Kitchen/Food
Internet Advanced materials Retail
Biosciences/life sciences Defense/homeland security Fashion
Electronics/Microelectronics Energy/Power Wood/forestry
Telecommunications Environment/clean technologies Tourism
Computer hardware Logistics/Delivery Manpower
Medical devices Nanotechnology Media
More than half of all business incubation programs are "mixed-use" projects, meaning
they work with clients from a variety of industries. Technology incubators account for
39% of incubation programs.
One example of a specialized type of incubator is a bio-incubator. Bio-incubators
specialize in supporting life science-based startup companies. Entrepreneurs with
feasible projects in life sciences are selected and admitted for these programs.
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Overview
The Incubation Process
Unlike many business assistance programs, business incubators do not serve any and
all companies. Entrepreneurs who wish to enter a business incubation program must
apply for admission. Acceptance criteria vary from program to program, but in general
only those with feasible business ideas and a workable business plan are admitted. It is
this factor that makes it difficult to compare the success rates of incubated companies
against general business survival statistics.
Although most incubators offer their clients office space and shared administrative
services, the heart of a true business incubation program are the services it provides to
startup companies. More than half of incubation programs surveyed by the National
Business Incubation Association in 2006 reported that they also served affiliate or virtual
clients. These companies do not reside in the incubator facility. Affiliate clients may be
home-based businesses or early-stage companies that have their own premises but can
benefit from incubator services. Virtual clients may be too remote from an incubation
facility to participate on site, and so receive counseling and other assistance
electronically.
The amount of time a company spends in an incubation program can vary widely
depending on a number of factors, including the type of business and the entrepreneur's
level of business expertise. Life science and other firms with long research and
development cycles require more time in an incubation program than manufacturing or
service companies that can immediately produce and bring a product or service to
market. On average, incubator clients spend 33 months in a program. Many incubation
programs set graduation requirements by development benchmarks, such as company
revenues or staffing levels, rather than time.
Goals and Sponsors
Business incubation has been identified as a means of meeting a variety
of economic and socioeconomic policy needs, which may include job creation, fostering
a community's entrepreneurial climate, technology commercialization, diversifying local
economies, building or accelerating growth of local industry clusters, business creation
and retention, encouraging women or minority entrepreneurship, identifying potential
spin-in or spin-out business opportunities, or community revitalization.
About one-third of business incubation programs are sponsored by economic
development organizations. Government entities (such as cities or counties) account for
21% of program sponsors. Another 20% are sponsored by academic institutions,
including two and four-year colleges, universities, and technical colleges. In many
countries, incubation programs are funded by regional or national governments as part
of an overall economic development strategy. In the United States, however, most
incubation programs are independent, community-based and resourced projects. The
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U.S. Economic Development Administration is a frequent source of funds for developing
incubation programs, but once a program is open and operational it typically receives no
federal funding; few states offer centralized incubator funding. Rents and/or client fees
account for 59% of incubator revenues, followed by service contracts or grants (18%)
and cash operating subsidies (15%).
As part of a major effort to address the ongoing economic crisis of the US, legislation
was introduced to "reconstitute Project Socrates". The updated version of Socrates
supports incubators by enabling users with technology-based facts about the
marketplace, competitor maneuvers, potential partners, and technology paths to
achieve competitive advantage.
Michael Sekora, the original creator and director of Socrates says that a key purpose of
Socrates is to assist government economic planners in addressing the economic and
socioeconomic issues (see above) with unprecedented speed, efficiency and agility.
Many for-profit or "private" incubation programs were launched in the late 1990s by
investors and other for-profit operators seeking to hatch businesses quickly and bring in
big payoffs. At the time, NBIA estimated that nearly 30% of all incubation programs
were for-profit ventures. In the wake of the dot-com bust, however, many of those
programs closed. In NBIA's 2002 State of the Business Incubation survey, only 16% of
responding incubators were for-profit programs. By the 2006 SOI, just 6% of
respondents were for-profit.
Although some incubation programs (regardless of nonprofit or for-profit status) take
equity in client companies, most do not. Only 25% of incubation programs report that
they take equity in some or all of their clients.
Incubator Networks
Incubators often aggregate themselves into networks which are used to share good
practices and new methodologies. Europe's European Business and Innovation Centre
Network ("EBN") association federates more than 250 European Business and
Innovation Centers (EU|BICs) throughout Europe. France has its own national network
of technopoles, pre-incubators, and EU|BICs, called RETIS Innovation. This network
focuses on internationalizing startups.
Of 1000 incubators across Europe, 500 are situated in Germany. Many of them are
organized federally within the ADT (Arbeitsgemeinschaft Deutscher Innovations-,
Technologie-, und Gründerzentren e.V.).
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Community Infrastructure Goals
1. Increase Service Providers to Address Specific Community Needs Related
to Juvenile Delinquency Behavior
a. By the end of year one, 98% of unmet community needs related to
Juvenile Delinquency are identified;
b. By the end of year two, 90% of youth risk-factors/needs/issues related to
Juvenile Delinquency will have a corresponding long-term community
service provider to prevent, address and treat those behaviors;
c. Within six (6) months, each jurisdiction served will have identified
resources for long-term, free or stipend-reimbursement services provided
by professionally-trained interns (education, psychology, social work,
criminal justice, business) and will have Memorandums of Understanding
or Agreements with the Department Field Training Programs at local
colleges, Universities, and Public Health/County Centers;
2. Increase Service Integration and Coordination
a. Within three months, 85% of identified services and providers are located
at the centralized community site;
b. By the end of the year, 85% of Service Providers attend monthly Provider
Case-Conference Meetings;
c. By the end of the year, 85% of Service Providers have increased
confidential communication and sharing about individual youth and family
treatment plans (with Parent Releases);
d. Within six months, Providers jointly review separate intake forms, develop
a Comprehensive Integrated Service Intake to be completed by youth and
families at a central, single-point of entry to be shared among service
providers in compliance with HIIPA regulations, and 95% Providers use a
developed document.
3. Develop Policies and Procedures for Integrated Service Networking
a. Within six months, a Policies and Procedures Manual describing Program
Process from referral to case closure is developed by each Site
Coordinator with input from Collaborative Providers.
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4. Develop Client Tracking Mechanisms
a. Within three months, a client tracking mechanism is jointly developed and
described by the Site Coordinator in the Policies and Procedures Manual.
5. Develop Quality Assurance Teams and Client Feedback Mechanisms.
a. Within six months, a Quality Assurance Team is developed including Key
Stakeholder staff, Service Providers, Supervisors or Professors from Field
Training programs, Program Consultants and a Program Evaluator;
b. By the end of the year, the Quality Assurance Team will have conducted
one visit at each site to assess and improve quality of services;
6. Identify and Operate Safe and Accessible Community Sites
a. Within one month, each community identifies and secures a safe (free of
violence, drug-free) site that is centrally located and accessible by youth
and families, or accessible by ADA (American Disabilities Act) compliant
transportation.
7. Increase Transportation to Service Delivery Sites
a. Within three months, each county will identify and implement the best
method (determined by community focus groups) of transporting clients
(public transportation, van with grant resources, in-kind community church
bus, parents) to the centralized service site.
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Five-Year Strategic Community Development Plan
Over the next five (5) years, having already completed the aforementioned
programmatic and Community Structuring plan over the previous five (5) years, we will
develop enhanced Evidence-Based programming in our service delivery areas for the
following organizations:
a. Nonprofits;
b. Churches;
c. School Systems;
d. Government Municipal Groups (Police, Sheriff, Court and Probationary
personnel, and Child-Care Agencies);
e. etc.
Start-Up Budget
Project Leader + Admin. Asst. (JCJ) $12,500
o $500/month (transit + food allowance) $ 6,000
Instructor #2 (M. Merrill) $ 5,000
Materials and Equipment: $ 7,500
Laptop Computer @ $1,500
Projector @ $ 500
Publications @ (Website, Quarterlies) $2,500
Printing (Event Flyers, Press Releases) $1,250
Logo items @ $1,250
Notepads, pens, etc. $ 500
e-Learning Production $ 8,500
Producer (E. Jenkins) $5,000
Video Equipment $2,500
Print Materials & Advertisement $ 500
Social Media Set-Up & Maintenance $ 250
Channel Set-Up (YouTube, etc.) $ 250
Office Space $ 10,000
Total Start-Up Costs $ 49,500
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