Here is a question for potential small business owners and current entrepreneurs to consider.

What is a business incubator?

Before the definition of an incubator is shared, it may be helpful to lay a foundation of understanding about the whole economic development ecosystem that academics and professionals attempt to create for the public.

First, consider the umbrella term referred to as entrepreneurship centers according to the International Business Incubator Association (INBIA).

These types of centers are located all over the world and each is geared toward driving economic development and job creation.

Under that term are the following from INBIA’s Operational Definitions:

·         Co-working spaces: offer collaborative community–based workspace for like–minded individuals or early-stage companies. Coworking spaces offer flexible workspace in the form of hot desks, private (dedicated) desks, or offices. Member companies pay for their space through rent or membership dues. Coworking spaces typically do not offer formal/required programs (education or training), although they may have speakers, meetups, or other optional, informal learning opportunities. Coworking spaces generally do not have established graduation criteria or competitive application processes. They are motivated to retain member companies as a sustainable revenue stream (versus graduating companies).

·         SBDCs Small Business Development Centers (SBDC): are cooperative service-based centers that are subsidized by the SBA (U.S. based), government agencies (international), higher education institutions, or economic development organizations. SBDCs provide learning opportunities and mentoring for small businesses in any industry.

·         Accelerators: have a highly competitive application process, and will invest equity capital in selected companies. Accelerator programs are typically short-term ranging from 3-6 months.

·         Makerspaces: are non-program-based community workspaces that provide equipment for specific sectors of manufacturing (e.g., technology, 3D printing, woodworking, food) and provide the tools, training, and specialized equipment necessary for creating and building physical products.

·         Super Hubs: blend several models of entrepreneurial growth into a single location, supporting entrepreneurs with a wide range of critical services. These are often incubators that may also have accelerator programs, coworking spaces, robust mentor networks, private offices, and/or networking events.

·         Incubators: typically charge monthly program fees or membership dues in exchange for office/desk space and access to program offerings. Incubators offer programs to member companies that typically include mentoring, education/training, and informal learning opportunities. Incubators also host events to provide networking and learning opportunities for both member companies and the local community. Member companies are usually required to apply to ensure they meet the incubator’s criteria or mission (industry, stage of company, founder demographics, etc.). Incubators usually have graduation policies that are typically based on the achievement of agreed-upon milestones, growth metrics, or time-based stipulations.

The SEED Center in Lake Charles is home to the Business Incubator, SBDC, and SCORE. Our collective effort is to ensure start-ups and businesses that are struggling have access to programs and subject matter experts who will assist. Currently, our staff is in the process of reorganizing and bulking up the services already being offered.

If you have a question about the SEED Center Business Incubator, contact us at 337-433-0977 or visit www.seedcenterswla.com. 

Eric Cormier is SVP of Entrepreneurship and Strategic Initiatives at the Southwest Louisiana Economic Development Alliance / SEED Center Business Incubator. He can be contacted at 337-433-0977 / ecormier@allianceswla.org.