Embed Size (px)
Citation preview
Small Business Incubator Certification Program 2016 Annual Report
Business incubators nurture the development of entrepreneurial companies, helping them survive and grow during the start-up period, when they are most vulnerable. These programs provide their client companies with business support services and resources tailored to young firms. The most common goals of incubation programs are creating jobs in a community, enhancing a community’s entrepreneurial climate, retaining businesses in a community, building or accelerating growth in a local industry, and diversifying local economies.
Incubators vary in the way they deliver their services, in their organizational structure and in the types of clients they serve. As they are highly adaptable, incubators have differing goals, including diversifying rural economies, providing employment for and increasing wealth of depressed inner cities, and transferring technology from universities and major corporations. Incubator clients are often at the forefront of developing new and innovative technologies – creating products and services that improve the quality of our lives in communities around the world.
The earliest incubation programs focused on a variety of technology companies or on a combination of light industrial, technology and service firms – today referred to as mixed-use incubators. However, in more recent years, new incubators have emerged targeting industries such as food processing, medical technologies, space and ceramics technologies, arts and crafts, and software development. Incubator sponsors have also targeted programs to support microenterprise creation, the needs of women and minorities, environmental endeavors and telecommunications.
A business incubator’s main goal is to produce successful firms that will leave the program financially
viable and freestanding, usually in two to three years. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies. Typically, 30 percent of incubator clients graduate each year. As of October 2012, there were more than 1,250 incubators in the United States, up from only 12 in 1980. The International Business Innovation Association (INBIA) estimates that there are more than 7,000 business incubators worldwide.
2
The International National Business Innovation Association (INBIA) developed a set of industry guidelines to help incubator managers better serve their clients. INBIA research has consistently shown that incubation programs that adhere to the principles and best practices of successful business incubation generally outperform those that do not.
Successful business incubators operate as a business, have a positive impact on a community, have an effective board of directors, and provide a nurturing environment, hands-on assistance and a variety of services for start-up and fledgling firms during their most vulnerable years. Research has shown that incubator companies are much more likely to grow into viable job-creating businesses than start-ups without such support.
Model business incubation programs are distinguished by a commitment to incorporate industry best practices. Management and boards of incubators should strive to meet incubator standards. The following industry guidelines are replicable and broadly applicable to incubation programs around the world, regardless of their focus or mission.
Standards for Success
Small business incubators accelerate the success and development of start-ups by enlisting an array of targeted resources, services and professional advice for entrepreneurs.
Small BusinessIncubator Certification Program
3
The role of the Department of Commerce in the incubator process is to certify the incubators pursuant to O.S. Title 74 Section 5071-79 and convene critical partners to assure standards of excellence. It is the responsibility of the incubator owner to hire managers to manage and market their incubators and provide business services to their tenants.
As 2016 began, Oklahoma had 37 certified incubators. One incubator, located in Norman, closed because of a lease issue. As 2016 comes to a close, 36 certified small business incubators are operating in Oklahoma (see Appendix), with tenants ranging from small service companies to high-tech research and development operations and manufacturing entities.
During 2016, Oklahoma incubator managers were asked to complete a questionnaire to document their activities for the current reporting period. Based on the information received from the responding incubator managers,149 small businesses are currently leasing space in Oklahoma’s small business incubators. These incubator tenants provide 726 full-time jobs. The charts show the growth and changes in the incubator program throughout the last ten years.
Throughout the life of Oklahoma’s Certified Small Business Incubator Program, a total of 844 small businesses have located in a small business incubator. Of those, 451 have graduated from the program or relocated to a larger facility and 238 of those companies have remained in the state. The businesses that remained in the state report they currently employ 1,931 people. Commerce believes the incubator program will continue to contribute significantly to Oklahoma’s economy.
Oklahoma Department ofCommerce and Incubators
The Oklahoma Business Incubator Association (OkBIA) was formed more than 20 years ago. The purpose of the OkBIA is to provide information, networking, guidance and assistance to incubator operators, as well as work with the Legislature to promote and benefit business incubation in general and tenants specifically. .
Oklahoma BusinessIncubator Association
In 1988, the Oklahoma Legislature passed the Oklahoma Small Business Incubators Incentives Act. The Act enables the tenants of a certified incubator facility to be exempt from state tax liability on income earned as a result of occupancy for up to five years. In 2001, the Legislature amended “the Act” to extend the tenant’s tax exemption from five to 10 years. The exemption remains in effect after the tenant is no longer an occupant in an incubator. In order to qualify for the tax exemption from the sixth through the 10th year, the tenant must make at least 75 percent of its gross sales to out-of-state buyers, to buyers located within the state if the product or service is resold to an out-of-state customer, or to the federal government. In addition, the Act enables the sponsor of a certified incubator facility to be exempt from Oklahoma income taxes for a period of 10 years.
Since the inception of the Act, the State of Oklahoma has benefited from increased revenues and increases in the number of start-up and expanding small businesses. These businesses have created jobs and enhanced economic activity in the Oklahoma communities in which they are located.
Oklahoma Business Incubators
4
A business incubator’s main goal is to produce successful firms that will leave the program financially viable and freestanding.
OF INCUBATOR CLIENTS GRADUATE EACH YEAR
During 2016, Oklahoma incubator managers were asked to complete a questionnaire to document their activities for the current reporting period. Based on the information received from the responding incubator managers:
149726
small businesses are currently leasing space in Oklahoma’s small business incubators
full-time jobs provided by incubator tenants
36 certified small business incubators are operating in Oklahoma, with tenants ranging from small service companies to high-tech research and development operations.
726 small businesses have located in a small business incubator, throughout the life of Oklahoma’s Certified Small Business Incubator Program.
409 have graduated from the program or relocated to a larger facility.
1,944 people are currently employed by the businesses that remained in the state.
0 50 100 150 200 250
NUMBER OF SMALL BUSINESSES LOCATED IN INCUBATORS
Oklahoma Incubator Program Growth
0 250 500 750 1000 1250
NUMBER OF JOBS CREATED BY INCUBATOR CLIENTS
0 10 20 30 40 50
NUMBER OF INCUBATORSThese incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies.
2016
2015
2014
2013
2012
2011
2010
2009
2008
2016
2015
2014
2013
2012
2011
2010
2009
2008
2016
2015
2014
2013
2012
2011
2010
2009
2008
30%
5
Applied Behavior Analysis is and the disparity in services for families,” she said. “I want to help the most people I can. Aspire wouldn’t be doing what we are doing without the Center.”
Designer’s Ink Graphic & Building Designs LLCMeridian Technology Center for Business Development, Stillwater, Okla.
Designer’s Ink Graphic & Building Designs LLC, is making its mark on the computer aided drafting industry across the globe.
With projects ranging from modest home remodels in Stillwater to large-scale commercial projects in the Bahamas and Angola, Africa, company owner/designer Jeff Dillon is giving design ideas new dimension using Chief Architect Premier X8, a professional 3D building design software.
“When clients work with Designer’s Ink they are able to see exactly what the end product will look like,” Dillon explained. “From tile color and texture to moving furniture around in their living room, I’m able to create a 3D version of a client’s project.”
In addition to bringing ideas to life with high-quality, 3D renderings and “walk through” videos, Chief Architect Premier X8 generates a materials list for builders and produces industry standard construction documents that include site plans, floor plans, section details, electrical plans, roof layouts, schedules and both interior and exterior elevations.
“Knowing all these elements allows a builder to make a more accurate estimate of the project,” Dillion said. “There is a tremendous cost savings due to fewer change orders during construction. Clients know exactly what they are getting and builders know exactly what they are building.”
Success StoriesOklahoma’s incubators have many success stories. The examples below are just a few for 2016.
Aspire Oklahoma, LLCCenter for Business Development at Autry Technology Center, Enid, Okla.
Owner Sandra Reese-Keck of Aspire Oklahoma, LLC utilizes the principles of Applied Behavior Analysis to work with children, families and adults. Aspire Oklahoma clients receive skilled coaching from Reese-Keck, aiding understanding of the effects behavioral issues have on one’s daily functioning.
In 2012, Aspire Oklahoma was merely two women pursuing different career paths, both desiring to control their own resources and to create something of lasting value to benefit future generations. So, Reese-Keck and her former business partner, went to Autry Technology’s Center for Business Development for advice and guidance.
“We had no business starting a business,” said a laughing Reese-Keck. “I was an educator and was working on licensing to become a Behavior Analyst. But I am a grandmother and wanted the flexibility of working for myself. The Center was the place I needed to be.”
Reese-Keck’s commitment to a three-year lease in the Center’s incubator provided access to office equipment and software, conference rooms, and a team of experts who educate their clients in marketing, financial planning, and business plan writing.
In 2015, Aspire Oklahoma graduated from the incubator and moved to their new location in October of that year. Reese-Keck engages clients who wish to pursue careers as Behavior Analysts. Aspire Oklahoma’s current in-state list of 45 clients is growing rapidly.
To enhance client services, Reese-Keck is pursuing additional certification to maximize her skills. “I want to educate Northwest Oklahoma (residents) about what
6
Dillon, the son of a building contractor, started Designer’s Ink in 1993 after designing houses as a hobby, but his love for design began when he was 14 years old. His brother had taken a drafting class in high school. When the year was over, he threw his drafting textbook in the trash. Though the subject wasn’t a hit with one Dillon boy, it was for another. The younger Dillon rescued the textbook and quickly read it from cover to cover. By age 16, Dillon had designed his first house.
In 1992, Dillon enrolled at Oklahoma State University to pursue an architecture degree. After one year on campus, he had the opportunity to assist with the reconstruction of a local crime scene. The experience marked an end to one career and the beginning of another; Dillon joined the Stillwater Police Department full-time in 1994.
He continued to work for clients in his spare time, teaching himself Chief Architect Premier along the way – and Designer’s Ink business continued to grow. With retirement inching closer, Dillon decided to relocate his office from his home to the Meridian Technology Center for Business Development – and with the new address, new full-time designer Kevin Walthall was added to the company.
“When it was just me I had to turn jobs down because I didn’t have the time to take on so many new projects,” Dillion said. “Bringing Kevin on board really strengthened what the company could offer. Kevin has a degree in graphic design and nearly two decades of experience in the construction and building materials industry. His experience, combined with just having someone who could work full-time for the company, has been a game changer.”
To date, Designer’s Ink has served clients in 17 states and across two continents. “Clients from all over the world find us on our website and ask us to design their projects,” he said. His designs were twice featured on Chief Architect’s website, and he frequently assists other program users on the software’s nuances.
Though he is unsure what the future holds for his company, Dillon wants to remain true to his roots. As his company continues to grow – and in his new location at Meridian Tech – it is the
perfect opportunity to hire graduates from the Architectural Drafting Program.
“Our clients may be all across the globe, but I plan to keep the business headquarters in Stillwater,” he said. “Designer’s Ink is going to be able to move to the next level at Meridian. I couldn’t ask for a better environment to grow this business.”
The Meridian Technology Center for Business Development assists in the business growth and development process by providing essential space and services for business incubation. From management guidance to technical assistance and consulting tailored to young, growing companies, the Center encourages development by working closely with clients on a progression plan that has measurable goals to assist the company in being self-sustaining within a designated time period.
McMahon MarketingeTec, Norman, Okla.
McMahon Marketing, an award-winning, full-service marketing agency, helps businesses dominate their industry marketplace. Serving clients around the globe, McMahon Marketing helps these brands achieve sustainable growth through inbound marketing strategies. Some of these services include but are not limited to social media, blogging, email marketing, graphic and website design. McMahon Marketing has found working in an incubation setting instrumental to success, allowing them to add office space as their team grew. Collaboration was also one of the many perks, having the opportunity to encounter fellow entrepreneurs, start-ups, and businesses on a daily basis. The flexibility and collaborative nature of an incubator helped ensure McMahon Marketing’s early success.
McMahon Marketing grew exponentially in its two years at eTec Business Incubator in Norman. In the beginning, the agency had one employee and occupied 108 square feet in the incubator. McMahon grew to seven full time employees and 1,400 square feet at the conclusion of the
7
company’s time at eTec. In 2016, the agency added five high paying jobs, attained a 40% growth rate and reached $1 million in revenue. McMahon recently relocated to its own facility north of The University of Oklahoma on Campus Corner. The agency’s unique approach to digital marketing has earned them a reputation built on excellence. McMahon Marketing was awarded the 2016 U.S. Chamber of Commerce Blue Ribbon Small Business of the year, among other recognitions. Today, author and CEO Korey McMahon speaks to audiences around the world on various industry marketing topics – helping thousands of business owners develop a marketing strategy built on the solid foundation of results. McMahon Marketing now boasts a portfolio of more than 40 retaining clients and continues to help businesses steadily increase their sales while building a timeless brand.
Watkins-Conti ProductsThe Launch Pad at Francis TuttleEdmond, Oklahoma
Watkins-Conti Products, Inc. is devoted to the innovation and development of affordable, effective solutions for common life-altering difficulties. Owner Allison Conti, who refers to herself as a ‘thirty-something mother transitioning into a thirty-something executive’, suffered from a disorder affecting approximately 500 million women worldwide known as Stress Urinary Incontinence (SUI). Conti invented and patented a device that addresses both the symptoms and causes of the disorder, prevalent in women who have borne children and maintain an athletic or active lifestyle. Current over-the-counter products, which represent a substantial portion of profit for companies such as Kimberly Clark, only address SUI symptoms, not the full extent of this debilitating women’s issue.
Watkins-Conti Products was offered initial funding from an Oklahoma not-for-profit organization specializing in tech and medical-related startups. Conti elected instead to raise first round funding on her own and will begin the first phase of FDA clinical trials at OU Medical in January 2017. After completion of the feasibility study at OU, another round of funding will be needed for actual clinical trials. Conti is
working with New York and San Francisco banking firms on second round funding; OU Medical and UCLA are under consideration for the clinical trials’ next phase. The product will be through the FDA approval process in early 2018.
This young mother has mastered the patent process, identified FDA approved manufacturing facilities, dissected the complex FDA approval process and assembled an advisory council that includes some of the top experts in this particular field of medicine. “I am so thankful that I found the Launch Pad at Francis Tuttle,” said Conti. “The staff has been instrumental in the development of Watkins-Conti Products, Inc. to date. We have been able to effectively author and execute our business plan and utilize local resources that we otherwise would not have been aware of as a result of their direction and counsel. The surprisingly affordable offices and beautiful conference rooms make us look professional and feel proud to hold meetings in the facility. I am honored to be a part of this respected program.”
Okl
aho
ma
Cer
tifie
dIn
cub
ato
rs
8
Num
ber
of in
cuba
tors
in th
e ar
ea#
11
11
11
1
11
11
1
1
14
1
2
12
11
1
11
2
1
1P
awhu
ska
1
Stroud
1
1
9
Pontotoc TechnologyBusiness DevelopmentCenter
Southwest TechnologyCenter BusinessIncubator
Northwest TechnologyCenter Small BusinessIncubator
Tri-County TechnologyCenter BusinessAssistance Center
Francis TuttleThe Launch Pad
James W. StrateCenter for BusinessDevelopment
Major CountyEconomicDevelopmentBusiness Incubator
Edmond
Enid
Fairview
Mixed Use
Mixed Use
Mfg./MixedUse
Mfg./MixedUse
Mfg./MixedUse
Mfg./MixedUse
Mixed Use
AdvancedMfg.
Aviation Mfg. andGeneral Use
Mfg./ MixedUse
2
1 0
1Ada
Altus
Alva
Bartlesville
Synergy EnterpriseDevelopment
Rogers County Industrial AuthorityBusiness Incubator
Eastern OklahomaCounty BusinessDevelopment Center
Central OklahomaBusiness & JobDevelopment Corporation
Duncan Center forBusiness Development
ProfessionalOffice
Bethany
Chelsea
Choctaw
Drumright
Duncan
East Main EnterpriseCenter and Incubator
Ada Art/ArtRelated
4 1 Fax and copy machine, library of resources
Caddo Kiowa BusinessDevelopment Center
OBAN coordinatoron site
Fort Cobb
Mfg./MixedUse
Mfg./MixedUse
2 0
16 5
22 6
6 3
4 3
12 10
10 5
25
1 1
2 0
1 0
Internet access, Mail/message service,shared copier and fax,business counseling
Government assistance,safety, customized training, secretarial
Shared fax and copier
Coaching, training and goverment contracting assistance
Business guidance, legal and insuranceadvice, fax, copy,secretarial assistance
Classrooms, printers,kitchen, coaching
Incubator LocationType of
BusinessesTargeted
TenantCapacity
CurrentNumber
of Tenants
Support Services Offered
Other ServicesProvided
Co
mp
ute
rN
etw
ork
Ph
on
eS
ervi
ce
Bu
sin
ess
Pla
nn
ing
Mar
keti
ng
A
ssis
tan
ce
Co
nfe
ren
ceR
oo
m
10
Rogers County Industrial AuthorityBusiness Incubator
Mfg./MixedUse
3 1Inola X X X
Artist Incubation, Inc. Guymon Artists 2 2 X X X X X Gallery space, openings
Great PlainsTechnology Center
Lawton Mixed Use 2 2 X X X X
Emerging TechnologyEntrepreneurial Center(eTec)
Norman Technology-based
27 26 X X X
Acorn GrowthCompanies
Oklahoma City
Aerospace& Defense
Financial planning,business developmentand capital
10 3 X X X X X
Moore NormanTechnology CenterBusiness DevelopmentCenter
OklahomaCity
Mfg./MixedUse
Business guidance andsupport, eventpromotion, financing,conference center
19 7 X X X X
The Catbird SeatUCO Small BusinessDevelopment Center
OklahomaCity
Mfg./MixedUse
Business guidance andsupport, eventpromotion, financing,conference center
5 1 X X X X
Center for EmergingTechnology and Entrepreneurial Studies- Cameron University
Lawton Technology-based
9 8 X X X X X Access to university resources like studentinterns and faculty, printer/copier/scanner
Hobart Economic Development AuthorityBusiness Incubator
Mfg./MixedUse
5 1Hobart X X X X X
El Parian atPlaza Mayo
OklahomaCity
Retail Resource center with a PC, MAC 3D printer and printer services
53 5 X X X
Rogers County Industrial Auth. Business Incubator
Oologah Mfg./MixedUse
2 2 X X X
Tri-County Technology Center Pawhuska Incubator
Pawhuska MixedUse
Business guidance andsupport, eventpromotion, financing,conference center
14 4 X X
X
Pioneer Technology Center
PoncaCity
Service and Light Mfg.
Color copier, fax machine, receptionist, on site management counseling, free business classes
6 2 X X X
Business guidance, Government Bid Assistance Service, accounting, commercial kitchen, arts incubation, and light manufacturing
Incubator LocationType of
BusinessesTargeted
TenantCapacity
CurrentNumber
of Tenants
Support Services Offered
Other ServicesProvided
Co
mp
ute
rN
etw
ork
Ph
on
eS
ervi
ce
Bu
sin
ess
Pla
nn
ing
Mar
keti
ng
A
ssis
tan
ce
Co
nfe
ren
ceR
oo
m
11
40
4
29
2
2
Northwest Tech SmallBusiness Incubator
Partner resources, referrals,financing, governmentcontracting
Waynoka Mfg. 2 0
Seminole BusinessDevelopment Center
Technologyor InnovativeProcess/Service
Mixed Use 2 2Seminole
OSU Riata Center forEntrepreneurship/Cowboy IdeaHatchery/MSENew Venture Lab
Mfg./MixedUse
Mfg./Distr.Mixed Use
The Forge 6High Growth/Tech/Energy/Mfg.
1Mfg.Central Oklahoma Business and Job Devlopment Corp.
Stroud
Website development, seed capital assistance, metnoringshared receptionist and clerical
15 13
Accounting and legal services, grant writing assistance and offer funding assistance.
900 N. Stiles Ave., Oklahoma City, OK 73104 • 405-815-6552 • 800-879-6552 OKcommerce.gov
