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ERIC Number: ED299072
Record Type: Non-Journal
Publication Date: 1988-May-3
Pages: 11
Abstractor: N/A
Rural Incubator Profile.
Weinberg, Mark L.
This profile summarizes the responses of 20 managers of rural business incubators, reporting on their operations, entry and exit policies, facility promotion, service arrangements and economic development outcomes. Incubators assist small businesses in the early stages of growth by providing them with rental space, shared services, management and business assistance, and an entrepreneurial environment. The number of U.S. business incubators has increased from 40 in 1983 to 271 in March 1988, the majority of them being in smaller rather than larger urban areas. Findings show academic institutions managed 55% of all rural incubators, with nonprofit organizations accounting for another 40%. Entry policies for rural incubators are similar to those for incubators nationally. Half of the facilities had formal exit policies. Rural development rates, measured in occupancy and incubator milestones, were lower than national averages. Recruitment of entrepreneurs is a problem facing all incubators, but especially for rural projects. The most effective recruitment method reported was individual contact. Assistance most used by tenants were accounting, marketing, business plans, and government grants and loans. Services were paid for using tenant reimbursements, donations, and professional fee reductions. It is concluded that, while incubators contribute to community development, the process has been slow and risky. Rural educational institutions are taking a disproportionate part of this risk and their continued involvement in incubator development is crucial. Subsequent research must resolve policy and management questions concerning strategies for incubators. The paper includes tables, endnotes and a sample list of rural incubators. (TES)
Publication Type: Reports - Descriptive; Speeches/Meeting Papers
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A