Co-Working & Incubator Space

Trending Local Support forLong-Term Sustainability…a legacy for our future

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Community’s Legacy

Rationale:• Create co-working space w/ small business

incubator (s) to drive business development in Gilbert for sustainable development

• Leave legacy for future generations based on best practices of new business model trends

• Rally business and community development to support long-term sustainability

• Draw upon Community residents’ expertise, skill sets and technological advantages.

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Current National Trends

• 23 million small businesses – 54% of US sales• 55% of all jobs – 66% of all NEW jobs• Occupies approx. 50% of all commercial space• Increased 49% since 1982• Since 1990 – BB lost 4M jobs, SB created 8M• 470% rise in social entrepreneurship courses

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLCSBA & Grey Pinstripes Study, Aspen Institute

Business Incubator Trends

• Over 1100 in US currently – 7,000 worldwide• 5-year - 87% vs. 44% small business survival• 84% stay in original community• Support from local economic development• Incubation tenure – 2 – 5 years• 94% are non-profit – 53% in urban areas• 54% mixed-use; 39% technology

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLCBusiness News Daily & National Business Incubation Assoc.

Co-Working Trends(multiple freelance workers co-locating)

• Since 2005 - 74% increase in remote workers• Over 820 locations globally• Scaled rental by needs • Developing community without borders• Spontaneous collaborations spawn businesses

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLCTelework Research Network & KCRG TV

Business Incubator Sponsors

• 31% - economic development organizations• 21% - government entities• 20% - academic institutions• 8% - other types of organizations• 8% - hybrids (more than one sponsor)• 4% - for-profit entities• 8% - no sponsorship

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLCNational Business Incubator Assoc.

Incubator Makings

• Selection process focuses on new businesses• Comprehensive list of business services• Graduation process - metrics and benchmarks• Shared office services – café, IT, facilities, etc.• Business advisory – classes, coaching, network• Collaboration – city, colleges, companies• Scaled pricing for services and space

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Successful Start-up Funding

• Managing in-house and revolving loan and microloan funds

• Connecting companies with angel investors (high-net-worth individual investors)

• Working with companies to perfect venture capital presentations and connecting them to venture capitalists

• Assisting companies in applying for loans

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Contributions to Local Economy

• NBIA estimates that in 2005 alone, North American incubators assisted more than 27,000 start-up companies that provided full-time employment for more than 100,000 workers and generated annual revenue of more than $17 billion. Source: 2006 State of the Business Incubation Industry

• Business incubators reduce the risk of small business failures. Historically, NBIA member incubators have reported that 87 percent of all firms that have graduated from their incubators are still in business. Source: Business Incubation Works

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Why Subsidize?

• Research has shown that for every $1 of estimated public operating subsidy provided the incubator, clients and graduates of NBIA member incubators generate approximately $30 in local tax revenue alone. Source: Extrapolated from data in Business Incubation Works

• NBIA members have reported that 84 percent of incubator graduates stay in their communities. Source: Business Incubation Works

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Co-Working Advantages

• Collaboration without bureaucracy• Sense of community• Encouragement for creativity• Low costs• Opportunities for local businesses• Attracts highly-skilled, business savvy• Promotes community engagement

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Short & Long-Term Benefits(combining Co-Working w/ Incubator)

• Occupation of empty commercial space• Revenue generation for community• Viability of commercial real estate expansion• Creates jobs, outside interests & tax revenue• Attracts larger concerns for development• Strengthens local areas in the community• Shared expertise, resources, technology

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Next Steps

• Create a buzz in the local community• Craft a flexible plan for initial model• Solicit potential participants/stakeholders• Facilitate a partnering for stakeholders,

participants and supporters • Potential Site selection (empty space)• Produce budget for build-out (tentative)

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Coagulating Possibilities• Becoming a Social Enterprise• Changing Business Models• Strategic Goals and Roadmap• Intent – Focus of engagement• Smart Community Management• Listen, Learn, Iterate, Improve• Organizational Foundation• ISO 26000 Social Responsibility Standards

Steps Forward

• Environmental and Social Entrepreneurship• New Business Models – Community Good• Collaborative Work Space• Curriculum – Existing & Future• Event/Meeting Space & Coordination• Community Development & Resources

Examples

www.seedspot.org

http://www.impacthubseattle.com/

http://www.candyissweet.com/

www.foundersuite.com