This document proposes creating a co-working space and business incubator in Gilbert to support local businesses and drive sustainable development. It cites national trends of growing small businesses, remote workers, and co-working/incubator spaces. Research shows incubators improve business survival rates and economic contributions. The proposed space would offer shared office services, business advising, and networking to help businesses collaborate and succeed long-term, providing benefits to the local economy and community. Next steps include generating community interest, selecting a site, and developing a budget.

1. Co-Working &
Incubator Space
Trending Local Support for
Long-Term Sustainability
…a legacy for our future
Zen Benefiel, Possibilities Coagulator

2. 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

3. 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
SBA & Grey Pinstripes Study, Aspen Institute

4. 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
Business News Daily & National Business Incubation Assoc.

5. 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
Telework Research Network & KCRG TV

6. 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
National Business Incubator Assoc.

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

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

16. Examples
www.seedspot.org
http://www.impacthubseattle.com/
http://www.candyissweet.com/
www.foundersuite.com