Incubators . . .

refer to centers that assist entrepreneurs in starting and growing businesses. They are called incubators because they are designed to help an entrepreneur hatch his idea into a thriving business. Sometimes they are also referred to as accelerators or business development centers.

There are a number of incubators throughout the country that cater to entrepreneurs. There are privately run incubators and incubators that are associated with universities, government agencies, and regional development authorities. Many specialize to take advantage of a founder’s or university sponsor’s expertise and work only with entrepreneurs seeking to build a company in a given industry, such as telecommunications, biotechnology or the Internet. Others are less specialized and accept companies from a broad spectrum of industries. Others are affiliated with networks of angel investors or a venture capital fund.

The services incubators typically provide include inexpensive facilities; short term rental arrangements; free or reduced-cost consulting services from accountants, lawyers, or business consultants; assistance in obtaining government grants and identifying sources of capital; and assistance in marketing and public relations. Some incubators provide access to specialized facilities and equipment that would be prohibitively expensive for a start-up company to acquire. Others offer access to specialized expertise from sponsors or access to investors. Entrepreneurs can identify incubators in their locale by contacting their local chamber of commerce, reading local business publications, or by inquiring of their accountant, banker, or lawyer.

Entrepreneurs should take care to evaluate a center before joining one. The number, quality, and costs of services provided vary from center to center. It is appropriate, when considering an incubator, to meet with and question the center’s director about the services available and the qualifications of the persons providing them. It is also helpful to speak with entrepreneurs who are working with the incubator and those who have left it.

Incubators can provide valuable services, but beware of "incubator syndrome." The services incubators provide can sometimes sound so good and complete that they lull unprepared businessmen into making the entrepreneurial jump too soon or into relying too much on the center. Joining an incubator is no substitute for entrepreneurial initiative, training, or self-evaluation. Entrepreneurs must remember when joining a center that their personal efforts and resourcefulness are the key to making their business succeed. An entrepreneur with incubator syndrome permits his initiative and judgment to be replaced by those of the consultants who provide assistance at the center. Even if those consultants are superbly skilled and dedicated, they cannot replace the entrepreneur or make his business succeed. See: Commitment, Entrepreneur, Technology Development Centers.