Business Incubators
An incubator is a business-support facility with processes that accelerate the development of fledgling companies. The Santa Fe Business Incubator (pictured) is one of four certified in New Mexico.
Establishing a certified business incubator is a strategy for fostering new business and new jobs in your community. An incubator is a business support facility with processes that accelerate the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services.
According to statistics from the National Business Incubation Association (www.nbia.org/):
- Every 50 jobs created by an incubator client generate approximately 25 more jobs in the same community.
- NBIA incubators have reported that 87 percent of all firms that have graduated from their incubators are still in business.
- Incubators create jobs at a cost of about $1,100 each, whereas other publicly supported job creation mechanisms cost more than $10,000 per job created.
Like the businesses they assist, research and planning are necessary to assure the development of a successful incubator. In 2005 the New Mexico Legislature created the program to assist communities in getting new incubators started and to ensure that all certified business incubators are following the NBIA’s best practices. The Economic Development Department is responsible for the program and created an advisory committee to provide policy guidance.
Members are:
- Kathy Keith, Rural Development Response Council, Chair
- Jasper Welch, Quality Center for Business, Vice-Chair
- Marie Longserre, Santa Fe Business Incubator
- Senator Carroll Leavell, Hobbs
- Roy Miller, Small Business Development Centers
- Agnes Noonan, WESST Corp
- Tony Gallegos, South Valley Economic Development Center
The committee has identified a three-step approach for incubator development and sustainability.
- The first step for a community considering a business incubator is research. Business incubator feasibility studies identify potential clients for a new incubator, or lack thereof; assess the availability of resources for the clients; identify obstacles to the incubator’s success; and provide an implementation plan for the incubator development.
- Once the research is completed a community must address the obstacles to building a sustainable incubator and organize its resources to build or renovate a facility and provide the necessary services to incubate its clients.
- The final step is certification by the Department. Download a certification application here.
Since 2006 the Legislature has generously provided funding for the program. For information on how this funding has been allocated and the results from our certified incubators, download the 2009 Program Funding and Performance Metrics here.
If you have questions or need assistance please contact Elizabeth Davis at 505.827.0333 or Elizabeth.Davis@state.nm.us.