Building A Business Incubator: A Teaching Case Study

Abstract

The purpose of this case study is to discuss the feasibility of a business incubation facility in an agricultural region of the United States. The paper explains some of the unique characteristics of this environment, and discusses what an incubator might look like in this region. Our research to date indicates that a business incubator facility can not only be a strong engine for economic development and job creation, even rurally, the incubator model creates an environment that greatly improves a new enterprise’s chance for success. In small-town America, those successes are incredibly important for economic growth. Our goal in this paper was to explore some of the challenges and roadblocks encountered as a few project researchers attempt to determine the feasibility of a business incubation facility in a small, rural and agricultural community like ours. A state-of-the-art incubation facility, if located within the central downtown business district, would likely greatly improve the aesthetics of the area, and perhaps draw new business investment into the core of the community. Business incubation facilities create jobs, with the ultimate goal of producing, or graduating, stand-alone companies, capable of self-sustaining operations within a period of about three (3) years. Such economic development activities can be vital in helping rural areas stem the general population loss many have experienced and also potentially lower the rate of rural unemployment and poverty.