Business Incubator Being Considered in Grayson

On May 17, the Loganville/Grayson Patch reported that in Grayson, “The mayor advised of a new incubation program the Downtown Development Authority is considering that would “grow” new businesses in the city.” ( )

The administrators and the DDA in Grayson have begun pursuing several options for business incubators and economic development - recovery starting at a community level, supported by the city.  Many are of a mind that the U.S. economic recovery requires community based, creative, out-of-the-box thinking with some basis in good business to bring sustainable prosperity with a level of confidence and stability. 

But what exactly is an “incubation program?” And how does it relate to economic development?

Business incubators are public and/or privately funded programs intended to nurture small businesses usually with an emphasis on assistance of start-up companies. Ideally, the incubator will help small businesses in their establishment and accelerate their growth and success. Local, state and national agencies look for ways to create jobs and stimulate the struggling economy; the concept of incubator programs is figuring prominently as an option.

While the challenges of beginning an entrepreneurial enterprise are not new, neither are incubator programs. The National Business Incubation Association (NBIA) believes that the first incubator was founded in 1959 at the Batavia Industrial Center. It didn’t catch on until the 1970’s according to the NBIA with 12 reported incubators in the U.S. in 1980. Some were structured strictly for non-profit organizations and the majority were technology focused.

As a small business support network, incubators vary in the level of services offered to businesses. Providing access to basic business services along with a shared “physical” pool  including phone and internet lines, secretarial/receptionist staff, and other amenities are some of the ways to make the day-to-day operation of small businesses more manageable.

Another level of support is the networking of contacts provided by being part of the incubator. These resources can include camaraderie among like-minded businesses, potential clients or even access to participating legal and accounting services.

Those businesses that graduate the program have the potential to strengthen local and national economies with their success, thus creating jobs, revitalize neighborhoods, or bring pedestrian traffic and consumers to a particular part of town for specific purposes.

Incubators can also range in the types of businesses they serve. In Stone Mountain, an artists incubator was put in place to revitalize the downtown area. In other instances, technology themed or service based businesses will be the perfect candidates for a mixed use program.

Financial sustainability of the incubator is considered the model for the businesses it serves. A business plan with specific financial expectations outlining the source of revenue is key. Initial resources can come from either public or private funding. A successful incubator will generate income to maintain its operating budget in the form of collected rents and service fees, contracts, investment income and sponsorships. Historically, the main contributors for sponsorships have been academic institutions, government agencies and economic development agencies. Subsidies are usually used for start-up, but the incubator should have identified, reliable and predictable sources of income for operation.

Grayson’s administration and those on the DDA Board are looking at business incubation as a possibility for small and start-up businesses. At this time, they are investigating the best options for its feasibility. 

“Grayson has always been a great community to live. The incubator will emphasize it's a great place to do business,” said Jimmy Norton, president of the Grayson DDA.