A business incubator or, in our case, an innovation center, is a place where startup businesses receive assistance to get their business up and running. Most incubators provide space, a variety of services depending on the needs of the client, and mentoring at a lower or just below market cost. The National Business Incubation Association reports that 87% of businesses that begin in an incubator succeed after two years compared to a failure rate of new businesses of about 75% in the first two years.

Interested parties should contact the incubator management, fill out an application and prepare a business plan. Other steps may be required depending on the incubator’s focus and policies.

Most business stay in an incubator one to three years.

Incubators and innovation centers target certain types of companies, so that the clients may cooperate and interact to the advantage of all. There are mixed use incubators, technology incubators, biotech incubators, and even art and kitchen incubators. Oklahoma has more than 40 certified to choose from throughout the state. Companies in Oklahoma incubators make medical devices, biodiesel, software and even vodka!

Incubators usually offer below market value rent, incubator businesses can network with each other to purchase or share equipment at discounted rates, and office infrastructure is usually provided (fax, copier, phones, break rooms and conference rooms). Incubator CEO’s and managers help clients develop solid accounting practices, manage legal hurdles, and help them find capital and financing. They also know how to address 8(a), minority-owned and woman-owned business issues.

Yes, they do. Businesses that begin in a certified incubator are exempt from state tax liability from income earned for up to 10 years.

The Oklahoma Department of Commerce website has a wealth of information regarding new business startup including a list of incubators in the state. Visit http://www.okcommerce.gov