BUSINESS INCUBATORS HELP NEW COMPANIES THRIVE

Cape Girardeau may be a notch closer to obtaining a business incubator.

Groups are looking at buildings as a potential site for an incubator, a Southeast Missouri grad student is working on an extensive project on incubators and the Cape Girardeau Chamber of Commerce is still talking about it.

Business incubation has come a long way during the past two decades.

Incubation programs create opportunities for almost any type of entrepreneur, from the smallest communities to metropolitan areas.

A national survey, conducted for the National Business Incubation Association, reports that 87 percent of incubator graduates are still in business.

The incubation program's main goal is to produce successful graduates businesses that are financially viable and freestanding when they leave the incubator, usually in two to three years. Thirty percent of incubator clients typically graduate each year.

Area incubators include those at Southern Illinois University at Carbondale, Ill., with 17 tenants, the Ozark Foothills Business Incubator in the Poplar Bluff, Mo., Industrial Park, with three tenants, and the Farmington Industrial Development group's incubator at Farmington, Mo., with three tenants.

From 1992 to 1999, 1,654 businesses were started in Cape Girardeau. Almost half, 806, are still in business.

This surpasses the national success rates that indicate small business start-ups have only a 20 percent chance of survival.

The idea for a business incubator has been kicked around Cape Girardeau for more than a decade.

"We're still talking about it," said John Mehner, president and chief executive officer of the Cape Girardeau Chamber of Commerce. "It's something we'd like to see and will continue to look into."

"We believe it's something that would help start up new businesses in the area," he said.

Mehner said a couple of groups were interested in the program, and is looking around for possible locations.

A Southeast Missouri State University business administration student study supports the need for an incubation service. A 1998 report, prepared by Southeast Missouri State University, indicated that many new Cape Girardeau businesses fail within 15 months, pointing out a need for consultation and financial support.

Business incubators provide small, entrepreneurial businesses -- with the exception of retail stores -- affordable space, shared support services and business development services to help them survive and grow during the start-up period when they are most vulnerable.

The incubator could be eligible for some financial grants, according to the university study, which indicated that the university, the Small Business Development Center and private enterprise should provide consultation and training services.

The number of jobs created also figures into the incubator success rates, said a university study. The Carbondale office creates an average of 140 new jobs a year.

A St. Charles, Mo., incubator opened in 1993 and has expanded to twice its original size. Within its first four years of operation, the St. Charles center has graduated an average of 15 businesses a year, with 85 to 90 percent success rate. It has averaged 30 new start-ups a year.

An incubator program at Mexico, Mo., started last year in a small building and with one client.