JOINT INCUBATOR STUDY SHOULD PROVIDE ANSWERS

The spirit of entrepreneurship appears to be thriving in Cape Girardeau. But the local Chamber of Commerce doesn't want to take any chances.

That's why the chamber has teamed up with Southeast Missouri State University to study small business activity. The research team is weighing the need for a business incubator here. Team members are midway through an eight-week study.

The study is a welcome idea. The business incubator concept has long been discussed in this region without any action. During the last three years, new incubator programs have met with success in Carbondale, Ill., and Poplar Bluff. This study may show whether or not the option is viable here.

An incubator program provides a step up for new businesses. Incubator tenants may share such support services as a central receptionist, computer facilities, conference rooms and secretarial services to help cut overall costs.

Nationwide, business incubators have helped reverse the odds. Studies show that 80 percent of companies nurtured in incubators survive as opposed to an 80 percent failure rate after five years for businesses in general. These statistics alone deem the concept worth a closer look.

The National Business Incubation Association says there are 346 incubators now operating in 41 states. This group indicates that interest is on the rise. They estimate that by 1995, the numbers will nearly triple.

Although a recessionary economy has discouraged expansion in many of the larger corporations, small businesses continue to beat the odds. And more city and chamber officials across the country are beginning to realize that by helping small business, they help themselves. Although small in individual numbers, these businesses represent a mighty force in the U.S. economy. National statistics tell us that small commercial enterprises account for 90 percent of all U.S. businesses.

Ironically, what may work against an incubator is the fact Cape Girardeau small busi~nesses fare better than the national average in terms of success rate. Funding will be another consideration.

No matter the outcome, the study should be well worth the effort. This research should answer questions raised over the last decade about the feasibility of such a concept. With hard facts in hand, the Chamber of Commerce will be better prepared to decide about the future of a business incubator here.