In the highly competitive marketplace, a new business can benefit
greatly from locating in a place designed specifically to help
startups to develop into strong growing companies. These facilities
are commonly known as incubators. Schenectady County offers startups
a state-of-the art incubator facility with a wide array of support
services to help your business grow.
From the National Business Incubation
Association…
What are business incubators?
Business incubators nurture the development
of entrepreneurial companies, helping them survive and grow during
the start-up period, when they are most vulnerable. These programs
provide their client companies with business support services
and resources tailored to young firms. The most common goals
of incubation programs are creating jobs in a community, enhancing
a community’s entrepreneurial
climate, retaining businesses in a community, building or accelerating
growth in a local industry, and diversifying local economies.
The History of Business Incubation
The Batavia Industrial Center, commonly
known as the first U.S. business incubator, opened in Batavia,
N.Y., in 1959. But the concept of providing business assistance
services to early-stage companies in shared facilities did not
catch on with many communities until at least the late 1970s.
In 1980, approximately 12 business incubators were operating
in the United States – all of
them in the industrial Northeast, which had been hard-hit by
plant closures in the previous decade.
Throughout the 1980s, business incubation industry growth was
swift, as a few farsighted individuals saw the limitations of common
economic development strategies that focused solely on industry
attraction and large corporate expansions. As others began to recognize
the value of creating and expanding new businesses to sustain local
economies, more communities developed business incubators to support
these new ventures.
How many business incubators are there?
Today, there are about 1,000 business incubators in North America,
up from only 12 in 1980. There are about 4,000 business incubators
worldwide. The incubation model has been adapted to meet a variety
of needs, from fostering commercialization of university technologies
to increasing employment in economically distressed communities
to serving as an investment vehicle.
What are the different types of business incubators?
Incubation programs come in many shapes and sizes and serve a
variety of communities and markets:
Most North American business incubators (about 90 percent) are
nonprofit organizations focused on economic development. About
10 percent of North American incubators are for-profit entities;
usually set up to obtain returns on shareholders investments.
47 percent are “mixed-use,” assisting
a range of early-stage companies.
37 percent focus on technology businesses.
7 percent serve manufacturing firms.
6 percent focus on service businesses.
3 percent concentrate on community-revitalization projects
or serve niche markets.
44 percent of business incubators draw their clients from urban
areas, 31 percent from rural areas and 16 percent from suburban
areas. Nearly a tenth (9 percent) of all programs draw clients
from outside their region or from outside the United States.
Incubator graduates create jobs, revitalize neighborhoods and
commercialize new technologies, thus strengthening local, regional
and even national economies. (For more information on business
incubation go to www.nbia.org)
SCCBC Space
SCCBC is a mixed-use incubator and small business resource facility
offering both office space and space for light manufacturing.
Our facility opened in September of 2000. We are located at 920
Albany Street in Schenectady, at the intersection of Steuben
Street. Owned by Schenectady County, it is a new building designed
to provide start-up companies with the space, office equipment
and support services necessary to grow into successful companies.
The building contains approximately 19,000 square feet of leaseable
space. The building is located in a New York State Empire Zone and is a designated Federal Renewal Community. These designations
can provide significant tax savings to qualified businesses.
Initial leases for space at the business center
are for three years. By the end of this three-year period, tenant
companies are expected to move from the incubator into commercial
space. Under certain circumstances, tenant companies may apply
to stay in the incubator beyond their initial three year lease.
Prospective tenants must meet certain qualifications to be an incubator
tenant, including completion of a business plan (See: Entrance
Policy).
Rental rates are extremely attractive for
companies that qualify for admission to the business center.
Rental rates increase $1 per square foot each year. These rates
include most utilities. Office space is available in a number of configurations
from one room open floor plans to three room suites in a number
of different sizes. Light manufacturing space is adjacent to
a loading dock and is fitted out with water and sewer connections
and dedicated HVAC units. The building is completely wired for
telephone service and Internet access. Tenants have access to
two conference rooms as well as a resource room with a fax, copier,
etc. The building is available to tenants 24/7 via a modern security
system. During normal business hours there is a receptionist
who is available to assist tenants in several areas. There is
ample on-site parking.
For up-to-date information on space availability and applying
to become a tenant please contact the Executive Director of the
business center.
