RESEARCH TEAM HALF WAY THROUGH LOCAL INCUBATOR STUDY

A Southeast Missouri State University research team is halfway through its 16-week study to determine the feasibility of a business incubator in Cape Girardeau.

Jamie Frakes of Portageville and Christy Mothershead of Benton, graduate students at the university, are heading up the research project under the guidance of Linda S. Cochran, director of the university's economic development department.

"We're conducting the study for the Small Business Committee of the Cape Girardeau Chamber of Commerce and the city of Cape Girardeau," said Cochran. "We're on target with out timetable half way through and expect to submit the reports of findings in early December."

Cochran, Frakes and Mothershead met Thursday with Judy Moss, director of economic development for the chamber; Ray Duffey, head of the chamber's incubator committee; and Glenn Reeves, chairman of the chamber's Small Business Committee, to discuss the progress of the study.

"We're currently in week eight," said Cochran. "We've been reviewing startups and failures of small businesses in the Cape Girardeau area."

Cochran said the failure rate here was well under the national average.

"Nationally, about 80 percent of businesses fail within the first five years," she said. "That percentage in Cape Girardeau is only 54 percent."

Cochran said the research team had researched Cape Girardeau business startup data from 1985 through 1990.

"We looked at a variety of businesses," she said. "They included restaurants, retail and service operations, wholesale, and some light manufacturing.

"Of 837 starts during the period, 487 are still operating," said Cochran.

The research also revealed that 80 entrepreneurs have expressed an interest in starting new businesses.

"We made contact with 41 of the individuals," said Cochran. "Five of them have already started businesses, all of the service variety. Of the remaining 36, 23 are still planning to start businesses in such areas as retail, wholesale, child care, beauty salon and auto repair.

"This is one of the areas we need to get a handle on," said Cochran. "We need to know the level of entrepreneurship in Cape Girardeau. There are probably a lot of people exploring new business ideas that we don't know about."

Cochran said the survey team was also interested in discovering market niches in Cape Girardeau. Part of the survey is designed to find out what products or services are now being obtained from outside Cape County.

Anyone interested in starting a new business, or anyone who wants to participate in the feasibility study can obtain a copy of the survey by calling the chamber at 335-3312.

Business incubators are facilities that provide small, entrepreneurial businesses with the exception of retail with affordable space, shared support services, and business development service while helping the young businesses survive and grow during the startup period when they are most vulnerable.

"Small businesses are vital to the economy," said Moss. "National figures tell us that small businesses account for 90 percent of all U.S. businesses."

The idea for a business incubator in Cape Girardeau is not a new one.

"It's been talked about for a number of years," said Moss. "But, we're through the talking stage now. Once this study is complete, we'll know whether to pursue the idea."

"We want to see if there is a need for such a facility before going any further," said Duffey.

There are 346 incubators in 41 states, and the National Businesses Incubation Association estimates that by 1995 there will be 1,000 such facilities.

Frakes and Mothershead will be utilizing a computer in the university's economic development department to seek information from some of the current incubators.

"We have a program where we can connect with other incubators," said Cochran. "Some of the information we'll be asking is how various incubators are funded."

Research shows that 80 percent of companies nurtured in incubators survive as opposed to an 80 percent failure rate after five years for businesses in general.

"We have visited other incubator programs," said Duffey. "We've visited two incubators in the St. Louis area. One of the centers included light industrial and other small businesses that could be compatible with our needs."

During the past three years incubator programs have opened in two area cities Carbondale, Ill., sponsored by Southern Illinois University's School of Business and the Carbondale Chamber of Commerce; and Poplar Bluff, developed by the Ozark Foothills Regional Planning Commission and Economic Development Association with involvement by Three Rivers Community College.

"Incubators are designed to help new businesses get off the ground," said Moss. "The businesses in an incubator receive technical assistance and expertise."

Tenants may also use a central receptionist, computer facilities, conference rooms and secretarial service at an incubator.

"At this point, we don't know what size building we may need," said Moss. "We've been thinking in terms of 18,000 square feet.

Included in the first eight weeks of the study is a list of commercial buildings, which are currently available; their size; and cost.

The buildings eight of them range in size from 13,000 square feet to 71,000 square feet.