The IncubateePresentation for the Burlington City Council June 19, 2014
Burlington - My City
Sims, move in and build their homes, stores and
workplaces, raise their families and invite their
friends. If your city is a nice place to live, your
population will increase. If it's not, your Sims
will leave town.
45% of people leaving are aged 20–39
The Economics
Company Headquaters
Cogeco Cable Quebec
L-3 Communications Wescam Inc. USA
Evertz Microsystems Ltd. Burlington
ABB Canada Inc. Switzerland
EMC2 Corporation of Canada USA
Dependable HomeTech Burlington
Boehringer Ingelheim Canada Germany
Vmware Inc. USA
Cogent Power Inc. Germany
Gennum Corporation USA
Goodrich Landing Gear Services Burlington USA
Michigan State University Center for Community and Economic Development
Employment
Small businesses accounts for more than 77.7% job creation in Canada
Employment Growth by Sector
thousands2008 2009 2010 2011 2012
Growth
2008-2012
Size
2012
All industries 17,087.40 16,813.10 17,041.00 17,306.20 17,507.70 2% 100%
Goods-producing sector 4,013.40 3,724.30 3,740.00 3,804.90 3,872.00 -4% 22.1%
Agriculture 323.6 316.1 300.7 305.6 309.2 -4% 1.8%
Forestry, fishing, mining, quarrying, oil and gas1 344.6 317.9 329.4 337.2 369.1 7% 2.1%
Utilities 151.5 147.6 148.3 139.8 140.7 -7% 0.8%
Construction 1,231.00 1,160.80 1,217.20 1,262.20 1,267.50 3% 7.2%
Manufacturing 1,962.70 1,781.80 1,744.30 1,760.20 1,785.50 -9% 10.2%
Services-producing sector 13,074.00 13,088.80 13,301.00 13,501.30 13,635.70 4% 77.9%
Trade 2,684.90 2,652.20 2,677.80 2,669.90 2,643.80 -2% 15.1%
Transportation and warehousing 848.9 816.2 805.7 843.4 849.4 0% 4.9%
Finance, insurance, real estate and leasing 1,073.60 1,092.10 1,095.70 1,083.40 1,093.20 2% 6.2%
Professional, scientific and technical services 1,189.30 1,191.90 1,266.70 1,309.20 1,299.30 9% 7.4%
Business, building and other support services2 685 654.9 672.2 677 690.5 1% 3.9%
Educational services 1,186.30 1,188.80 1,217.80 1,219.40 1,287.70 9% 7.4%
Health care and social assistance 1,893.00 1,949.20 2,030.70 2,091.50 2,128.00 12% 12.2%
Information, culture and recreation 758.4 769.6 766 784.2 790.4 4% 4.5%
Accommodation and food services 1,080.60 1,056.60 1,058.40 1,093.40 1,102.40 2% 6.3%
Other services 748.3 787 753.5 758.7 795.3 6% 4.5%
Public administration 925.7 930.3 956.4 971.2 955.9 3% 5.5%
One Simple Example
Company Employees
Cogeco Cable 550
L-3 Communications Wescam Inc. 500
Evertz Microsystems Ltd. 400
ABB Canada Inc. 300
EMC2 Corporation of Canada 251
Dependable HomeTech 250
Boehringer Ingelheim Canada 250
Vmware Inc. 212
Cogent Power Inc. 200
Gennum Corporation 170
Goodrich Landing Gear Services Burlington 146
Role Models
• Ottawa• Copeland and Matthews• Rod Bryden
• Kitchener Waterloo• Lazaridis and Balsillie• Val O’Donavan• Savvas Chamberlain
• Burlington• Dieter Evertz• Nox Leavitt • James Egan
Me 160 people employed = over 500 Timmy’s jobs
A metaphor - City Gardens
• City provides• Land
• Fertilizer
• Water
• Gardner's provide• Seeds
• Nurturing
• Weeding
• Harvesting
The Incubator Garden
• What entrepreneurs need• Work environment
• Mentoring
• Funding
• Essentials of a company
• Network - Buzz
• Pollination
The Incubator - A Place to Cross Polinate
• Gladwell describes in Outliers environments that lead to success.
• The Incubator creates an environment for entrepreneurial success
• Highly efficient and economic• Office is created in one day• Facilities are beyond affordable• Eliminates the distraction of
Overhead
Those in the tech space know that “cross pollination”, the probable introductions to other businesses, professionals or ancillary services, produce economic and professional growth and returns
The Entrepreneur’s Mall
• Terry Mathews incubator approach
• entrepreneur focus on product success
• Minimize distraction administering a company• Finance and Accounting• Legal and IP• Human Resources• Marketing and Communications• Sales Management• Technical Services
• What's needed, when needed
• No full time burden
Fundrazr Burlington
• Community that invest in itself
• Crowdfunding locally
• Cost? $0.00
• Fee 5% - 2.5%
• Both entrepreneurial and charitable
How do incubators contribute to local and regional economies
• 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
• 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
What do I get? Quality of Life
• A place to incubate my company
• Used to lose 15 hours/wk. commuting
• Now I ride my bike it is 5 hours/wk.
• More time for work
• More time for family
• More time for play
• More sense of community
• Contribute jobs to my community
What Burlington Gets
• Little companies become big companies
• Timmy’s jobs become professional jobs
• Higher salaries = higher tax base
• Company earnings stay in Burlington
• Job footprint a fraction of warehousing
• Intensifies industry – building is vertical
• Vertical = higher tax base
• A wealthier community
• A more prominent sense of community