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
In 2011 NMEDD undertook an economic impact study which quantified the significant economic impact of five of the certified incubator facilities. The study indicated that in 2011 the incubators served a total of 102 tenant and 76 graduate businesses. These 178 businesses generated $93.9 million in direct revenue. Read the full study
- 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.
New Mexico Business Incubator Program
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. 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.
New Mexico's Certified Business Incubators: