Co-working & Incubator Space Trends

Co-Working & Incubator Space

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

Zen Benefiel, Possibilities Coagulator BE THE DREAM, LLC

Gilbert’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 Gilbert residents’ expertise, skill sets and technological advantages.


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


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


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


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


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


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


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


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


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


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


Next Steps

• Create a buzz in the GCU 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)


Date post:	29-Oct-2014
Category:	Business
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