Many new entrepreneurs find the process of growing their business as a lonely trek that takes more work than anticipated. Over the past few years, business incubators have helped these entrepreneurs grow and scale their businesses by providing support such as office space, training, mentorship, networking and even financing, in some cases.
Incubators can be sponsored by several types of organizations including nonprofit corporations, for-profit ventures and academic institutions. The idea of most incubators is to help businesses grow and “graduate” out of the incubator and into their own space within one or two years.
Some of the benefits to entrepreneurs are:
1. Helping fledgling companies save on operating costs. The shared facility allows clients to share in the overhead costs associated with business operations. Incubators may also help link businesses to capital, whether that is venture capital or other financing vehicles.
2. Providing a mentorship program that pairs an entrepreneur with an established executive with experience to help guide them through the start-up phase of their operation. This experience can help entrepreneurs avoid some of the pitfalls associated with their new endeavor.
3. The clients within an incubator can also develop relationships with other entrepreneurs, and the networking that comes from those relationships can be invaluable to their business. They can provide encouragement to each other and help solve problems.
Incubators benefit communities by helping new businesses prosper, which can lead to stable jobs for locals. Many new entrepreneurs will stay in the community and grow, filling vacant spaces and providing a lasting impact.
The Virginia Business Incubation Association is a good resource to learn more about incubators and what is available in your locality, as well as information and events geared toward the support of entrepreneurs in Virginia.