Study finds that incubators are effective job creators

<p>At a time when the U.S. Congress and President Obama are investing hundreds of billions of dollars to create jobs, a recently announced study clearly proves that business incubators need to be part of the job creation equation.</p><p>Important research just announced by the U.S. Department of Commerce Economic Development Administration proves that business incubators provide communities with significantly more jobs at far less cost than do any other public works infrastructure projects – including road and bridges, industrial parks, commercial buildings and sewer and water projects.</p><p>According to the “Construction Grants Program Impact Assessment Report,” based on a study conducted for EDA by Grant Thornton, business incubators provide up to 20 times more jobs than community infrastructure projects (e.g., water and sewer projects) at a fraction of the cost. For more information on this study and its findings, visit www.nbia.org/works.</p><p>This study reveals what we at the Sonoma Mountain Business Cluster in Rohnert Park have known all along: Business incubation programs are proven tools for helping entrepreneurs grow successful businesses. And especially during times of economic crisis, it is vitally important that the nation leverage its existing investments in incubators to generate new jobs and innovations and to help individuals facing layoffs to start their own firms.</p><p>The National Business Incubation Association estimates that in 2005 alone, North American incubators assisted more than 27,000 startup companies that provided full-time employment for more than 100,000 workers and generated annual revenue of more than $17 billion. Many thousands more jobs have been created by companies that have graduated from these programs and now operate self-sufficiently in their communities.</p><p>The Sonoma Mountain Business Cluster has grown from an idea to having 24 resident startup companies in just the past 18 months.</p><p>Business incubation is known as a very effective regional development tool. An EDA-funded study in the mid-1990s found that 87 percent of all firms that had graduated from NBIA member incubation programs were still in business – and about 84 percent of those graduates remained in the incubator’s community. Jobs created by incubators are enduring, high-paying positions with benefits that contribute to community and U.S. global competitiveness. </p><p>•••</p><p>Michael Newell is the executive director of the Sonoma Mountain Business Cluster, 1300 Valley House Drive, Suite 100, Rohnert Park 94928, www.somobc</p><p>.org. He can be reached at 707-794-1240 or michaeln@somobc.org.</p>