Unwrapping the Package-Final Document-2.0

GLOBAL ENTERPRISE NETWORK
(GEN)
BUSINESS
IS
MINISTRY
UNWRAPING THE PACKAGE
Steve Haynes, Author
3575 Rialto Heights; Suite # 111
Colorado Springs, CO 80907
steve.haynes@navigators.org
C: 727-871-3777
The Navigators, Global EnterpriseNetwork
Caitlyn Webb, Editor
3820 North 30th
Street
Colorado Springs, CO 80904
caitlynrwebb@gmail.com
C: 785-477-4102
The Navigators, Global EnterpriseNetwork

BUSINESS IS MISSIONS - UNWRAPING THE PACKAGE
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Table ofContents
Purpose............................................................................................................................................ 1
EXECUTIVE OVERVIEW............................................................................................................. 1
Part I ............................................................................................................................................... 4
What is Business Is Mission all about?......................................................................................... 4
Incubators.................................................................................................................................... 5
Accelerators ................................................................................................................................. 5
Lean-startup strategies................................................................................................................. 6
Startup programs......................................................................................................................... 6
Where do entrepreneurs come from?........................................................................................... 8
Entrepreneurial Education and Training..................................................................................... 9
The How-To’s of The Business....................................................................................................9
Initial and Ongoing Education and Training Programs ...................................................................9
University Involvement.............................................................................................................. 10
Mentoring / Coaching ................................................................................................................ 13
Follow The Money...................................................................................................................... 14
Strategic Partnerships................................................................................................................ 15
Creating Jobs............................................................................................................................. 16
Culture....................................................................................................................................... 17
Top 10 Issues Facing United States Youth Today........................................................................17
Top 10 Issues Facing International Relationships.........................................................................19
Policy and Regulatory Compliance ............................................................................................ 20
United States Regulatory Compliance........................................................................................ 20
Global Regulatory Compliance .................................................................................................. 21
Part Two........................................................................................................................................ 23
Hallmarks of Success and Failure .............................................................................................. 23
Factors in Success .....................................................................................................................23
Factors in Failure ......................................................................................................................24
Key Failure Indicators ...............................................................................................................24
Exit Strategy.............................................................................................................................. 31
Summary ................................................................................................................................... 34
Part Three ..................................................................................................................................... 36
Strategic Recommendations....................................................................................................... 36
Conclusion Summary..................................................................................................................... 45
REFERENCES.............................................................................................................................. 46
Footnotes..................................................................................................................................48

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BUSINESS IS MISSIONS - UNWRAPING THE PACKAGE Page 1
Purpose
The purpose of the development of this report is to identify business incubators and/or
accelerators:
1. Why are they in a particular business
2. What are their objectives
3. How are they achieving their objectives
4. Where are they investing their energy
5. Who are the leaders in this industry (commercial and/or non-profit)
This report, developed from research,analyzes the concept of Business Incubators and
Accelerators,the entrepreneurs that manage them and the prospects of promoting their products and
services as a missional approach to further advance the gospel into the world. This document presents a
summary of opportunities to expand the contribution of Global Enterprise Network (GEN) and The
Navigators in economic development through business incubators and accelerators and related
products/services. The research base for this report is derived from national interviews of commercial
and non-profit organizations (both face-to-face and virtual).
This report examines the practice of business incubation, provides an objective assessment of its
effectiveness,and suggests practices to help incubators be successful. Business incubation is touted as a
highly effective entrepreneurial development strategy, which is supported by examples of incubators
displaying definitive results. The majority of incubators who do not live up to the hopes of their
organizers do not have a market that sustains the product and/or service that benefits from incubation.
Often times, the organization does not have the considerable financial, technical, and managerial capacity
required to execute an effective business incubation program.
EXECUTIVE OVERVIEW - This document addresses several sections examining business
incubation:
I. Part One
What is Business Is Mission (BIM)?
Various aspects of data are examined on the practice of Business Incubators (BI), and share
insight gleaned from interviews with dozens of incubator operators in the United States of America.,
Canada and other international entities. It offers an objective assessment of the impact of incubation on
startup success. Lack of documentation is attributed to:
1. Lack of BI’s with documented operations
2. Scantiness of BI’s willing to share their Intellectual Property (IP)
Note:Business Is Mission (sometimes referred to as Business As Mission BAM)

II. PART TWO
Factors in Success
Observations and thoughts on BI measurements that help determine the success of a BI are
provided below. This section concludes with a brief mention of the emerging collaborative models that
identify typical economic development organizations.
Too often, the decision to pursue a business incubator is made before there is a good
understanding of the local entrepreneurial and small business communities. As in any business venture,
planning should begin with good market research and understanding the needs of potential targets. Once
delineated, this research can be matched to the goals and capacities of the economic development
organization and used to choose the best model. The “best model” may be an incubator, co-working
space,or other viable option. The resulting program must earn stakeholder support and adopt well-defined
policies designed to yield results for its specific targets.
The title “Unwrapping the Package” illustrates the ignorance of organizations that want to start a
small business, but do not understand what they are pursuing or the challenges faced during the final
analysis,
Economic developers and community decision-makers (entrepreneurs) should be cognizant that
high-performing programs producing a steady stream of graduates are a minority in the business world.
Entrepreneurs should also be aware that not every enterprise dissolves into low-rent office space or
industrial buildings. Success is determined by individual circumstances,well-informed assessment of the
alternatives, and effective execution of business operations.
Incubators accomplish a variety of goals such as; creating jobs, revitalizing neighborhoods,
commercializing technologies and, in the case of GEN, deploying missionaries into the missions field.
Developing a business incubation program, which involves engaging in a comprehensive discussion of
issues related to incubator development, helps decide if a business incubation program is right for GEN
and/or The Navigators. This research will help promote informed decisions about an incubator project.
This report provides tips, advice, examples, and offers food-for-thought on existing programs.
There are nearly 300+ different factors that are quintessential in assessing the capacity necessary
for economic development. Some of these examples include evaluating:
 The movement to reduce accepting missionaries into countries (not because of their non-
acceptance of the gospel, because they don’t see a benefit of missionaries (no revenue, no
taxes,no jobs, a drain on the country)
 Lack of trust in donor and/or funding organizations due to misuse of funds
 Lack of communications and outreach to financial supporters
 Organizational structure and leadership
 Funding for economic development
 Economic development research
 Citizen involvement
 Workforce, education, and training
 Local ordinances and regulatory framework
 Disaster susceptibility and mitigation planning

The communities of not-for-profit and economic development are beginning to analyze startups
as an opportunity for growth. These communities have seen an increase in the number of not-for-profit
organizations considering business incubation as a strategy to promote missionaries entering or returning
to the field as missional entrepreneurs. Incubation is a highly effective strategy that requires sustained
commitment, ongoing support, financial investment and technical capacity.
It may be hard to address topics discussed in this report. That is why most not-for–profit organizations do
not, or cannot, deliver the most effective comprehensive program to their clients or organization. To
advance their operations, these organizations must realize and admit their need for change.
PART THREE
Strategic Suggestions
This part identifies strategic suggestions The Navigators should consider when developing a
missional business incubator approach to commissioning missionaries in the field, both internationally
and in select geographical areas in the United States. These should be considered and approached as
“pilot projects” and early start-up initiatives.
PART FOUR
References
People, companies, universities, federal government, and non-profit organizations interviewed
that may be interested in working with GEN to achieve our goals and objectives.

Part I
What is Business Is Mission all about?
God is at work, and people around the world are embracing Biblical truths. There is a great
variety of activity occurring from place to place and industry to industry. There exists a common vision
and purpose. It is a true movement that is spreading and fostering a feeling of excitement.
“What is holy in our midst has something to do with the odor of dung on a stable in
Bethlehem, the fruity taste of wine on the table at Cana, and the smell of dried blood on
the cross at Golgotha.Thus God is on the plane and in the rice field
He is in prison and in Carlton Club; God is in the brothel and in St Clara church
He is in the slums of Calcutta and in the CBD in Sydney; and He is always Immanuel –
God with us. And He is with us in our workplace!”
Mats Tunehag, Senior Associate
Business As Mission
The Lausanne Movement
In the past when you mentioned Business Is Mission (BIM),there were many questions: What
does it mean? Is this something to get involved in? How does an individual get started?
Today it is possible to travel to almost any country and engage with individuals who have heard of, are
talking about, or are practicing BIM. It is evident that God is at work in the nations.
For the purpose of this report, Business Incubation is;
“ A workspace that is an instructive, supportive environment to entrepreneurs at the start-up and
throughout the early stages of businesses.”
Another change in the last fifteen years is the development of an unprecedented global
connectedness of people involved in the BIM movement. There are now many more people involved in
the ‘BIM ecosystem’ around the world; not just business owners, and other business professions, but
those who provide support services. Mission agencies, churches, academics,and others connected in
spreading The Gospel are realizing that businesses are needed for enacting and sustaining a holistic
impact. A global movement, instead of individual expressions, is shaping the shared understanding of
Business Is Mission. People groups are working together, having a broader spiritual impact, and initiating
significant change.
Roughly fifteen years ago, Henry Blackaby
wrote the book “Experiencing God”. His preface was
simple; “Find out where God is at work and go join
Him.” At present, God is raising awareness of His
activity in the workplace, as identified in the Gospels
and the Book of Acts.
Today, there is a reawakening of Christianity
in business. Like never before,there is a greater
global understanding of the idea of Business Is
Mission (BIM).

At the core of the BIM movement is a growing practice of business incubation and business
acceleration. The dilemma faced by many aspiring entrepreneurs is the process of discerning the
difference between incubators and accelerators.
The difference between an accelerator and incubator is analogous to a summer course versus a
four-year institution. The two programs operate similar to startup incubators and accelerators,
respectively.
Incubators
An incubator is an enterprise that provides office space,equipment, mentoring assistance and
capital to new businesses. Either a University, not for profit, or venture capitalist establishes a typical
business incubator. This business incubation model supports an increasing amount of Web-based
businesses.
Business incubators are organizations geared toward accelerating the growth and success of
startup and early stage companies. Incubators are a good path to capital from angel investors, state
governments, economic-development coalitions and other investors.
The National Business Incubation Association has:
 More than 1,400 members in the United States
 A total 1,900 members in 60 nations.
Incubators vary in their strategies. Some are located in a physical space meant to foster
networking among entrepreneurs and coaches. Others operate through virtual hosts.
Many incubators have potential capital to invest or latent funding sources. Incubators provide
access to services such as accountants and lawyers -- not to mention invaluable coaching and networking
connections through the staff and other entrepreneurs at the incubator.
Some businesses gain access to a budding buffet of capital choices, which host intangible benefits
including mentorship, expertise and networking.
It is critical to analyze whether an incubator approach is the most beneficial for an embryonic
enterprise. An entrepreneur should not select the first available incubator. Instead, he/she should “shop”
around for the one whose services offer the best fit.
Good sources for finding an incubator include state and local economic development
departments, as well as local Small Business Agencies (SBA).
Accelerators
A startup accelerator can be thought of as the high-speed development of business ideas. An
accelerator generally takes a concept in its early stages,and condenses two or three years of business
development into a few months. The founder or startup team receives temporary office space at the
accelerator—often without charge—as well as training and access to administrative resources,business
mentors, legal counsel and accountants. The accelerator provides seed money, typically in exchange for a

small portion of equity, and works to push the startup to the point of attracting venture capital and angel
investment in a short period of time. The idea is to speed up the startup so that it either succeeds or
crashes before too much time or money has been invested.
Knowing within three months, as opposed to three years,that an idea needs to be reworked, or is
unprofitable, saves the startup head and heartache. With the expertise and support from an accelerator,an
innovative business idea has a much better chance of survival.
The accelerator model is becoming an attractive business model because it addresses the
challenge of co-dependency. Ventures graduate according to a predetermined schedule, signifying
increased independency and decreased need for incubator-based support. Firms in a business accelerator,
much like cadets at boot camp, help each other receive more services than they would gain from either an
incubator or angel investment. A prime example of theses services is the demo-day events, which brings
together hundreds of investors to hear venture ideas.
Lean-startup strategies
Leading incubators and accelerators embrace the lean-startup approach to launching businesses
over the creation of a traditional business plan. This approach emphasizes customer product testing,
which shortens development cycles and generates feedback. Entrepreneurialand venture capitalist lean-
startup fits the mantra: "If they come, you will build it."
Some accelerator organizations adopt the lean-startup approach because,for them, it serves as a
catalyst for business while minimizing waste. Once businesses finish the 9-12 week training course,
they’re ready to petition angel investors for financial aid. Typically, entrepreneurs launch a "Splash" web
page with little or no investment to introduce the public to a business that may or may not exist beyond
the idea stage. The future of the business is determined by the traffic the web page receives. If people
flock to the web page, the business should continue with its operations. If there is low-visitation to the
portal, then the business should “pivot” their idea by either testing a new hypothesis or acting on potential
feedback given in the run-up to the launch.
Startup programs
Recently, research by the Kauffman Foundation adds a new dimension to business analysis.
Nearly every year since 1990, new job growth has been attributable to startups. During the same time
period, businesses one year old or older experienced negative net job growth.
Most of our news on measuring economic growth is
focused on the number of new jobs created. However,other
factors from the Department of Labor indicate that businesses
are constantly creating and eliminating jobs. In the last 30
years,net job growth has been within the smallest businesses.
On average,businesses with more than 20 employees have
tended to shed more employees than they have added, while
businesses with fewer than 20 employees have been more
likely to add employees.

These statistics imply that business formation strategies should be an integral part of economic
development programs, rather than a third-party ancillary effort. Given the circumstances of local areas,
policies and programs designed to support struggling businesses, encourage business expansion, and
attract new businesses have merit within an overarching economic development strategy.
When it comes to promoting startups, many economic development organizations turn to
incubation. The numbers below reflect a growing interest in BI operations. The worldwide figures
representing business incubator expansion are:
 Growth from 3,200 startups in 2000 to approximately 9,000 startups in 2013
 An increased number of incubators in the United States from 1,200 incubators to 1,400
incubators.
Challenges to arriving at a definite number of incubators include; no registry of incubators and no
precise definition for incubator classification. The statistical description of incubator-based operations,
provided by the National Business Incubation Association, is outlined below:
 Most North American business incubators (about 93 %) are nonprofit organizations mostly
focused on economic development.
 Very few are focused on the mission side of incubation; which is referred to as missional
entrepreneurship.
 About 7% of BI’s are for-profit entities, usually established to obtain returns on shareholders’
investments by taking an equity position in tenant businesses.
 In terms of a client focus, most (54 %) are mixed-use; assisting a range of companies that
might include a combination of office-based and manufacturing uses.
 37 % of BI’s have an IT focus.
 6 % of BI’s are focused on service or other niche businesses.
 Only 3 % of incubators have a solely manufacturing clientele.
Entrepreneurship - a primary driver ofeconomic prosperity.
Therefore go and make disciples of all nations,baptizing themin the name of the
Father and of the Son and of the Holy Spirit,and teaching themto obey everything I have
c commanded you.And surely I amwith you always,to the very end of the age.”
Matthew 28:19-20 (NIV)
A number of recent articles question the impact of incubation on business formation and growth.
Critics argue that incubated businesses are no more likely than other businesses to find long-term success.
In fact,the data suggest that very few businesses actually grow to a point where they can graduate from
an incubator.

The incubator-approach is most closely associated with the talent characteristics of individual
entrepreneurs than the attributes of tenant businesses or the overall potential of business incubation as a
practice.
Research on business incubation, including The Navigator and GEN experience and interviews
with entrepreneurs (or incubator managers) and tenants across the continent, identifies factors that
distinguish effective incubators from less successfulpeers. These elements offer considerations for those
who may be trying to determine if incubation is the correct strategy for their organization.
Business incubation is a process that supports the development and scaling of growth-oriented
early-stage enterprises. The process provides entrepreneurs with an enabling environment at the start-up
stage of enterprise development. This helps reduce the cost of launching an enterprise, and increases the
confidence and capacity of the entrepreneur. Business incubation links an entrepreneur to resources
required for starting and scaling a competitive enterprise. Entrepreneurs accepted into business
incubators remain until an agreed upon milestone is reached. These milestones are measured in terms of
sales revenue or profitability.
Expanding upon this school of thought, information development experience shows that effective
coupling of innovation and entrepreneurship requires an ecosystem comprised of active linkages between
financiers, academia, policymakers, and business communities as described in Figure 1 below. If any one
of these linkages is weak or non-existent, the entire ecosystem is ineffective at enabling innovative
entrepreneurship.
Where do entrepreneurs come from?
The human capacity to innovate and become an entrepreneur permeates global society. It is the
environment that unleashes human ingenuity. Research shows no specific geographic trend in the location
of innovative entrepreneurs.
Successfulentrepreneurs and viable business ideas have come from all sources: Corporations,
universities, and grassroots organizations. One common characteristic among these three entities is a
global vision from an international travel background. This results in the establishment of business
ventures in a traveler’s home country. Figure 2 below identifies area percentages of such
entrepreneurship.
Universities 21 %
Infrastructure
Policy
Regulatory
Compliance
Academia
Business Entrepreneurs
Incubators
Technology
Parks
Social &
economic wealth
creation
Markets
Financiers
Innovations
Figure 1. Innovation and entrepreneurship ecosystem

Government 20 %
Non-Profit Organizations 42 %
Private Companies 17 %
Entrepreneurial Education and Training
According to a national survey of business incubators, the majority of entrepreneurs spend most
of their time constructing, maintaining, and fundraising business ventures. Little time is spent on activities
that foster entrepreneurship.
A for-profit entrepreneur’s major incentive of joining an incubator is to gain access to low-rate
commercial space. A second consideration is the availability of clerical support and basic office
equipment. Consulting services are the third tier in the evaluation and decision process. Education and
training is considered the least in the four-step process of assessing the need to join with a business
incubator.
Entrepreneurs must realize that running a business involves 1) growing the program and 2) continued
entrepreneurial education and training.
Note:This report addresses non-profit missional operationsand not-for-profit business.
Therefore, entrepreneurs must maintain their focus on sustaining business to provide an
“open door” to advancing the gospel.
The following elements of education and training are necessary for entrepreneurs to grow
personal business and retain employees’ focus on the vision of the business:
THE HOW-TO’S OF THE BUSINESS
It has been said; “Where there is no vision, people parish”. This is true today, especially with
millennia’s. Ongoing education and training in business incubation is essential to start-up procedures of
expansion and growth. People want to know where their money is being invested.
INITIAL AND ONGOING EDUCATION ANDTRAINING PROGRAMS
A strong education and training programs that support business incubation is focused on the
development of a business plan. This plan evolves with the appraisal of a business idea. Following are
severalcomponents of an ongoing business education and training program:
 Business Survival Skills - The first component of initial and ongoing education and training
programs involves the development of business survival skills. Entrepreneurs must have a
working understanding and knowledge of the entire institution to make informed decisions
about continued business operations. Enterprises must learn to depend on the detailed
knowledge and experience of select employees.
Figure 2. Where Do Entrepreneurs Come
From

 Fostering Entrepreneurship – It is vital to provide opportunities for understanding how to
survive and grow business. The business design should include provisions to bring
entrepreneurs,bankers, and government officials to the business incubator to share real-life
situations. This exposes in-house clients to meaningful experiences.
 Content for the Entrepreneurs - Entrepreneurs are usually interested in solving problems as
problems emerge. Thus, the timing and relevance must be customized to fit the needs of the
clients as much as possible (i.e., training activities and identify real-life examples).
 Identifying Content - Survey the needs and wants of entrepreneurs both in and out of
business incubation. Presenters,consultants, and government officials represent another way
to identify content necessary to the success of the startup.
 Identifying Relevant Content Material - Relevant material is both needed and wanted by
entrepreneurs. Content must represent real-life issues. This helps prepare entrepreneurs solve
current problems and upcoming situations. Every entrepreneur follows a different direction.
Therefore, it is vital to encourage entrepreneurs to take time to participate in educational and
training experiences.
 Delivery - Relevant and timely topics will fail to make an impact on an entrepreneur if the
delivery is not engaging and stimulating.
 Use the Right Speakers – A combination of speakers is crucial in ensuring an effective
conveyance of education and training. Incubator managers indicate that presenters must be
adept communicators, and deliver the material in an interesting manner. The best presenters
are individuals who are knowledgeable speakers,and have the ability to inspire entrepreneurs
through support, encouragement, and motivational conviction.
 Use Relevant and Meaningful Examples for Delivery – Real-life examples are
instrumental in assisting entrepreneurs relate better to practical experiences. The use of case
studies describing efforts to launch businesses, situations leading to failure, the survival of
problematic situations, dealing with business regulations, and other such precedents,is an
effective way to add relevance to delivery. Bringing working entrepreneurs to an educational
and training activity to share their personal experiences related to the topics at hand is the
best way to increase applicability and provide meaningful illustrations to incubator clients.
 Make Sure the Delivery Is Timely - Entrepreneurs want to learn about experiences they can
readily use to solve problems and meet current needs.
 Make Sure the Delivery Is Flexible – A flexible schedule and adaptive format for
presentations is the mot effective delivery tool for educational and training activities. .
University Involvement
Businesses in incubators sponsored by Universities experience a failure rate of 17 percent less
than those in incubators without University collaboration. The former also encountered a sales growth
rate that was 200 percent higher than the latter. Employment growth of University-sponsored businesses
was 370 percent higher than non-University facilitation. This figure represents concentrated employment

in a select number of firms. The mean employment is similar between firms in university incubators and
other incubators.
Below are figures that defend how business incubators affiliated with four-year Universities
perform better than non-University sponsored incubators:
 17 % less failure than those without university collaboration
 Sales growth 200 % higher
 Employment growth 370 % higher
It an can be concluded that, on average,business incubators affiliated with four-year Universities
perform better than other incubators.
Differential performance does not extend to incubators aligned with two-year colleges. Likely
explanations for this include:
 Quality of resources institutions provide
 Academic and subject area composition of the faculty and students
 Greater emphasis on research at four-year colleges, as opposed to the more common role
of on-the- job training at technical colleges.
Two-year colleges appeared to be providing primarily commercial space at low-cost and clerical
support to entrepreneurs rather than consulting services and strategies aimed at fostering
entrepreneurship.
While University incubators may be more successful, their managers point to discrepancies
between the assumed nature of business tenants at the start of the project, and those that were actually
attracted to the facility. Many University-sponsored business incubators go unused due to lack of tenants
and/or over anticipation of participants.
Some numbers might help place the potential for University spin-off in perspective. In a 2012
survey, in which 194 research institutions responded, the Association of University Technology Managers
found:
 705 companies had been formed.
 544 established their business in the same state as the University they received incubator
support from.
 3.6 businesses-per-research institution, or 2.8 businesses, had the potential of being located in
the same vicinity as the University granting aid.
The following are numbers from the University of Chicago, which found:
 1.5 percent of University driven intellectual property generated the establishment of startups

 The best universities in the sample displayed a startup rate of one for every 30 million of
research funding.
 Only 231 of 721 universities recorded $30
million or more in research funding in 2010.
More frequently than startups, a good deal of the
research is licensed for the purpose of commercialization.
Commercialized businesses can be successfully incubated
through a more traditional approach, and without the
expensive and often questionable investment in advanced
infrastructure.
Additionally, it is worthwhile to consider the
overall market penetration and performance of incubators.
The National Census of Business Incubators and partners
identified:
 18,500 incubated businesses grew between
1990 and 2008
 527 startups graduated into businesses, and 437 of these “graduated businesses” remained “in
business” one year later
 Between 1990-2008, 14,050,000 new businesses began
 0.13 percent (roughly one out of every 760) benefitted from incubation of one of the 1,400
business incubators in the United States.
Disclaimer: This research might be overstated as many incubators enroll tenant companies that
already exist, and are not necessarily startups.
Below are the benefits of incubators, accelerators,and entrepreneurs working through a
University context:
 Potential grants and/or ancillary funding
 On-site business expertise
 Access to financing and capital
 In-kind financial support
 Community support
 Entrepreneurial networks
 Entrepreneurial education

 Selection process for tenants
 Cross ties to other universities
 Concise program milestones with clear policies and procedures
Mentoring / Coaching
Mentoring is defined as a relationship between an experienced person (the mentor) and a novice
(the mentee) that develops specific skills and knowledge used to enhance the less-experienced person’s
professional, personal and spiritual growth.
In Greek mythology, Mentor (Greek: Μέντωρ, Méntōr; gen.: Μέντορος) was the son of Alcimus
or Anchialus or Heracles and Asopis. In his old age Mentor was a friend of Odysseus who placed Mentor
and Odysseus' foster-brother Eumaeus in charge of his son Telemachus, and of Odysseus' palace,when
Odysseus left for the Trojan War.
When Athena visited Telemachus she took the disguise of Mentor to hide herself from the suitors
of Telemachus's mother Penelope. As Mentor, the goddess encouraged Telemachus to stand up against
the suitors and go abroad to find out what happened to his father. When Odysseus returned to Ithaca,
Athena appeared briefly in the form of Mentor again at Odysseus' palace.
Because of Mentor's relationship with Telemachus, and the disguised Athena's encouragement
and practical plans for dealing with personal dilemmas, the personal name Mentor has been adopted in
English as a term meaning; “Someone who imparts wisdom to and shares knowledge with a less
experienced colleague.” The process of mentor/mentee is decisive to the success of developing into the
person God has called us to be:
Then Jesus said to his disciples,“If anyone would come after me, he must deny himself
and take up his cross and follow me. For whoeverwantsto save his life will lose it, but
whoever loses his life for me will find it. What good will it be for a man if he gainsthe
whole world, yet forfeits hissoul? Or what can a man give in exchange for his soul? For
the Son of Man is going to come in His Father’s glory with His angels, and then he will
reward each person according to what he hasdone.Matthew 16:24-27
Mentoring and coaching in a wide array of business areas,including key skill building and
employee retention, are effective methods in achieving business objectives.
Incubation is an incredible experience that transforms a business. Through incubation and
acceleration, businesses validate hypotheses, tweak models, and push thinking in short time. Both
incubation and acceleration save time spent on trial and error analysis. They also induce monthly growth,
noticeable after primary launch.
Business incubators and business accelerators have existed for decades. But they've undergone
dramatic changes in recent years,and are still changing. The adoption of a Mentoring/Coaching
component in each system fortifies the strength and structural soundness of both models, inducing greater
potential for start-up success.

MORE MENTORING / COACHING
Leading incubators are offering more structured mentoring programs with tutoring sessions
following a specific syllabus and growth milestones.
Acceptance into a mentoring/coaching program requires prior homework and treating the
business idea like an intense classroom project. Usually, there are no fees to enter a mentoring program as
a mentor or coach. However,many organizations assess a fee for mentees and/or coached candidates.
These fees may manifest in the requirement of a small piece of equity in each company that goes through
the session.
In sessions, participants usually meet once a week with mentors / coaches whose intention is to
become profoundly involved in making the business a success. The sessions involve a mix of group work
and curriculum. The milestones include developing a product-market fit, building the company
infrastructure, and preparing presentations for potential investors.
The accelerators steer participants towards either a quick and less financially painful failure, or
strong growth momentum that includes garnering investor support. This process can be fun and engaging.
Those involved need to stay focused on their goals, objectives, and the bottom line as much as their
primary business activities.
FollowThe Money
There are two ways in which funds come to an organization. The first is through “the investor.”
Increasing amounts of funding to support companies are attributed to these “investors.” In many cases,
there is no direct investment in the company itself. This is rapidly changing as some investors are offering
more money to those accepted into accelerator programs. In exchange for funds, investors receive a 3-6
percent stake in the company it helps launch.
The other way funds are received into an organization is through donors. This method is
becoming less frequently used. This decline is attributed to three reasons:
1. No or limited accountability – Receiving organizations are miss-appropriating funds or
failing to use the funds under agreed upon conditions
2. Recent and ongoing news, which highlights the organizations mentioned above and causes
donors to become wary
3. Lack or miscommunication with donors
FINDING MORE MONEY
Many investors excited about what entrepreneurs can do with a little more money, "supercharge
the growth of early-stage companies.” Some do not currently supply funding to fledgling firms, but others
say they are in "transition to a model to provide dedicated capital."

Strategic Partnerships
A partnership is a voluntary collaborative agreement between two or more parties in which all
participants agree to work together to achieve a common purpose or undertake a specific task.
Partnerships share business risks, responsibilities, resources,competencies and benefits.
Strategic partnerships and alliances are key to the effective sustainability of business incubators
around the world. These partnerships are based on win-win opportunities between institutions. They
include a variety of cooperative provision forms outlining infrastructure, administration, and service.
When entering into a strategic partnership or alliance, there is a lot to consider. The following tips
are key points to regard before engaging in a partnership:
 Communication - An emphasis on effective communication between partners is essential.
Open and effective channels of communication between members of the partnership or
alliance will ensure that there are no misaligned expectations between the parties. This should
be identified in a Mutual Non-Disclosure agreement.1
 Focus on Outcomes - It is important to know what can, and is ready, to be delivered. It is
also vital to know what should be expected in return from a potential partner. . It is wise to
approach a partner with clear objectives. Expectations should be identified in the partnership
agreement.
1 A nondisclosure agreement is a legally enforceable contract that creates a confidential relationship between a
person who holds some kind of trade secret and a person to whom the secret will be disclosed.
Strategic Alliances and Joint Ventures
Success Rates Cited by CEO’s
When starting a new
program or business there
are three ways to get started;
1) Build the initiative from
scratch
2) Buy what is needed
3) Partner to fill in the gaps
necessary to get started.

 Mutual commitments - The nature of a business and that of the partnership or alliance will
determine how much each party needs to give in order to keep the partnership or alliance
healthy.
 Collaboration - The extent to which an entrepreneur will be happy to share resources with
partners needs to be evaluated. Generally, the more collaborative the partnership or alliance,
the more successfulthe endeavor. It is important to keep in mind that an alliance, not a
merger, is being formed. Therefore,sharing resources is not necessary.
 Trust - Remember, not every detail of business operations can be planned. The success of an
endeavor will depend on the amount of trust and communication between joint parties.
In summation, teamwork effectively pools resources,reduces operational costs,and catches the
hybrid wave of business ventures targeted at benefitting the expansion of The Kingdom.
Creating Jobs
Roughly 92 business incubators report the graduation of 4,230 enterprises, which employ 62,000
people. This translates into an average of 14 jobs per enterprise. As these business incubators and
graduations are still young, it is not yet clear how many additional jobs will be created over time. For
example, in Brazil, incubators have graduated 1,500 enterprises and generated 33,000 jobs, representing
an average of 22 jobs per enterprise.
The creation of sustainable jobs is an important outcome of support to innovative, early stage
enterprises. Incubation is an enabling tool for innovative enterprise creation and visibility. According to
an assessment of 49 business incubators conducted by the Manitoba Environmental Industries
Association (MEIA), over one third of the business incubators helped create more than 50 new businesses
as identified in Figure 3 below.
Figure 3 “Number of new businesses set up by an incubator”
“Real Numbers” on the Business Incubation Analysis have generated little support for the idea
that incubators are good job creators; however, there is some evidence that they are more cost-effective
than subsidizing business attraction. In regards to public subsidies, the NBIA’s State of the Business
Incubation Industry survey indicates that public subsidy as a portion of incubator revenues, has decreased
from 57 percent in 1989 to 15 percent in 2006. In the 2006 survey, 32 percent of North American

incubators reported receiving no subsidy at all. Other research,using a more representative set of
incubators, suggests only one in five businesses are capable of operating without a subsidy. Many of these
profitable incubators are privately developed, with the developer taking an equity position in the tenant
businesses.
Note: Most of the business incubators surveyed were less than five years old and were not
“mature” enough to measure accurate impact.
Culture
Research shows that environments that embrace risk, diversity of thought and actions, and
interpersonal trust, correlate with high levels of innovation. 85% of business incubations studied felt that
there was very low tolerance for risk or failure in their business environments. Most business incubators
identify the contrast between innovative entrepreneurship and risk-averse local values as a key challenge
for stakeholders.
TOP 10 ISSUES FACING UNITED STATES YOUTH TODAY
The new Millennium society has begun to recognize serious concerns facing today’s youth. Some
of these issues are chronic, while others have emerged as society begins to adapt to a faster pace of life.
Below are the top 10 issues facing the Millennial Generation:
10. Single Parent Households - The problem begins at the home. Since the 1950s, the number of
single parent homes has consistently increased to the point of catastrophe. Today, 14 million
single parents are responsible for 28 million children. Raising a child is difficult enough in a
two parent home, especially in tough economic conditions. The absence of a parent’s diligent
guidance, leads children to higher dropout rates,higher risk of dangerous sexual behaviors and
pregnancies, and higher chances of drug and alcohol abuse. It truly takes a village to raise a
child.
9. Drug/Alcohol Abuse – There was a time in cinematic history when virtually every
actor/actress was portrayed on screen with a cigarette in hand. Smoking, it was implied, was
cool. As a result everyone began to do it, including children. Well, as awareness to the danger
of smoking increased, “cool” images of smoking disappeared. Unfortunately, the same does not
apply to the consumption of drugs and alcohol. Today, these vices are staples in everyday
media. 21% of high school seniors say they get high and 41% of the same group report alcohol
abuse. Society’s youth are literally moving around in an intoxicated daze.
8. Growing up too Fast - There was a time when kids enjoyed being kids. Today, even at the
earliest of ages,children are partaking in adult activities with serious consequences. The
movies, TV, and Internet bombard youth with sexual suggestions. In fact, there are entire TV
series marketed directly to kids dealing with sex. Music is a culprit as well. Today, it’s all about
“How low can you go” and “baby let me sex you up.” Kids are having sex as early as 10 and
11, with teen pregnancies and abortion increasingly on the rise. The concept of childhood is
deteriorating.
7. Violence in Schools - A child’s education is the foundation from which he or she will be able
to go forth out into the world and build a life. Schools play a major role in this endeavor, and
therefore it is reasonable to expect that these places of learning would be safe havens for
children preparing for adulthood. Unfortunately, this is not always the case. In many instances,

especially in low income, urban settings, schools can be a war zone. We are not talking about
minor bullying, but rather serious violence. Consider that in the last decade 284 kids were
murdered due to school violence – these were shootings, stabbings, fighting and suicides.
Growing up is tough enough without having to be worried about being killed while going to
math class.
6. Materialism – The United States of America,one of the richest countries in the world,
promotes a materialistic lifestyle driven by over-consumption and entitled want.. We teach our
children that the measure of success and happiness in life is based in quantity rather than
quality. The concepts of “earning” an income and maintaining a “lifestyle” have been lost and
discarded.
5. Obesity - Our society is medically prescribed as overweight. Recent numbers show that 20%
of Americans, and our children, are obese. Video games, TV, Internet and fast food chains are
partly to blame. Kids are spending more time sitting in front of a TV and computer screens than
running around outside. This sedentary lifestyle has consequences. Mental and physical health
issues include low self-esteem,depression, high blood pressure, type 2 diabetes and other such
maladies linked with obesities are infiltrating the daily norms of society.
4. Educational Disparity - A good education provides a child with the increased probability to
take advantage of opportunities for a successfulin life. It is true that some schools are “better”
than others. However, the issue at hand is whole classes of American children being denied a
proper education that will prepare them to compete in a job market with their peers. Disparity
in educational quality is delineated by race and financial status. While Asians and Whites
enjoy high graduating rates,African American and Latinos continue to lag behind. Not
surprisingly, because job opportunities are lessen for dropouts, these two groups have the
highest incarceration rates.
3. Shifting Economy - America used to sustain itself through domestic production and
international exportation. The economy has shifted to a more service-focused industry versus
a manufacturing industry. In order to cut costs and keep product prices low, companies rely
on outsourcing jobs to other countries with less-expensive labor costs. Some companies have
lowered labor costs by outsourcing call center jobs.. America is decreasing the pay of service
jobs to less than the average blue-collar job while adjusting to full immersion in a
competitively demanding global economy. Jobs offered to uneducated individuals offer
minimum wage rates,with little room for pay increases. Additionally, a college education no
longer guarantees sustainable economic indemnity. In fact,youth today will graduate from
college with multiple degrees, and still be unable to find work with adequate pay to sustain a
decent lifestyle.
2. Poverty - The federalpoverty level is $22,050 for a family of four. This equates to 21% of all
children (15 million children) labeled as impoverished. . Basic expense coverage for a family of
four requires an annual income of $45,000. This means that nearly 50% of our children are
living in poverty. Half of these children receive no government assistance because their parents
have earned annually more than $22,050. Poverty impedes learning and contributes to social
and behavioral problems. There is no income to counteract these troubles. Mommy cannot
afford a tutor and Daddy cannot afford a counselor.

And finally,
1. Erosion ofNational Pride/Identity – The United States of America functions as an
Individualistic culture. Most folks focus on their “self” and not the “whole”. When we learn
that America’s children lay educationally behind other industrialized nations, we don’t cringe.
There is very little sense of collective identity as Americans. This is a result of our children
being improperly educated and raised. There was a time when every child would begin the
school day by standing and reciting the Pledge of Allegiance (one nation under God). Children
were taught the significance of the 4th of July. These practices are long gone and so is our
sense of common destiny. With so many diverse nationalities, races,and ethnic groups that
comprise America, the one common bond we have with one another is our national identity as
Americans.
TOP 10 ISSUES FACING INTERNATIONAL RELATIONSHIPS
“Cultural differences should not separate us from each other, but rather cultural diversity brings a
collective strength that can benefit all of humanity.”
- Robert Alan Silverstein
While there is no secret recipe for effective global co-operation, these ten points will help
successfully navigate through the complexities of international relationships:
1. Avoid making instant judgments or assumptions about people from different cultures
regarding their working style
2. Try to research cultures you will be working with/in
3. Try to understand how your leadership style might be viewed through the eyes of team
members from different cultures – they may view your style as bizarre
4. Remember that not all problems encountered in international situations are the result of
cultural differences – such issues can be personality-based, technical or commercial
5. Just because people do things differently in another country does not mean they are
necessarily wrong in their approach. It is as important to understand your own cultural
attitude, as it is to understand the cultural attitude of others.
6. A good idea is a good idea regardless of where it originates – you do not have all the answers
7. Not all ideas from the head office are good ideas
8. Not all ideas from the head office are bad ideas
9. When communicating with people who are speaking a second language, do not over-estimate
their linguistic abilities. Just because they are good at a second language does not mean they
are perfect!
10. Teams and organizations that foster confident flexibility and co-operate well across cultures
will prosper in an increasingly global economy.

Policy and Regulatory Compliance
General Policy and Regulations
Many of the policies and regulatory compliance laws in other countries are not optimized for
entrepreneurs as identified below in Figure 4 – Regulator and policy incentives for SME’s. Trade laws
supported by global countries exist in fewer than one half of the surveyed world; legal incentives to start
new businesses and assurance of intellectual property (IP) protection and laws against the theft of IP are
weak in three-fourths of the surveyed countries. Over 80 percent of business incubators reported that
regulatory, legal, or policy incentives for new business do not exist in other countries.
United States Regulatory Compliance
Most collegiate international components are housed in either the University’s foreign language
or business departments. With few exceptions, these resources will be found to be underutilized or
functioning in isolation both in terms of integration within the college and in its connections with the
community at large. In these times of increased global competition, each state is fighting to utilize the
foreign market and survive within the framework of an international economy. Postsecondary technical
institutions can play a major role in facilitating education, training, and related services in the community.
Three strategies that fit this scheme are:
 First, the integration of a multidisciplinary approach conducive to trade that utilizes available
collegiate and community resources. In this strategy,it would be helpful to know if there is
global trade interest from existing foreign language and business faculty, professionals in the
community with expertise in international trade,support from college administration, local
business and industry endorsement, and government agencies promoting international trade.
Further, it is advisable to identify potential goods and services with possibilities for trading in
foreign markets to bring in the appropriate technical expertise to inform trading operations.
The best option is to compile a team of players based on the available resources in the
community and objects of trade. As the program grows, the scope increases gradually to
IP Laws that facilitate entrepreneurialism activity
Trade laws supporting entrepreneurialism
Regulatory, legal policy incentives for new business
24%
Figure 4. Regulatory and policy incentives for entrepreneurs
17%
39%

include a comprehensive plan to meet the needs of entrepreneurs interested in trading in
goods and services not originally produced locally.
 The second strategy involves clearly defining the education and training component of
business development. This includes print and audiovisual material for instructional and
dissemination purposes. To create awareness and ongoing visibility in the community, a
series of workshops and seminars is integral in this stage of the strategy.. Within this step, the
role of an interdisciplinary team should be to cooperatively determine the development of a
coherent structure of participation for the common good. For instance, a course or seminar on
international public relations can be taught by bringing together foreign language and
business faculty with professionals in the community with international experience. This
would transform practical experiences into meaningful formats. In short, the point is to have
education and training opportunities with a practical focus on international relations, trading
procedures, import/export regulations, and other related topics available to the public. This is
a strategy, which can be used in addition to print and audio/visual materials used for personal
consultation and self-paced instruction.
 The third strategy requires addressing the nuts and bolts of global transactions by offering
counseling services in key areas of international trade. This requires research and analysis of
universal markets, products, services, and procedures. These services are a natural
progression of the second strategy. At this point, the establishment of an assistance center
with an international focus should be considered if there is sufficient demand for its services.
The strategy of chartering a business institute pertains to establishing a center with defined
goals and services that work with faculty and professionals in the community.
The aim when establishing business institutes, and/or business incubators, is to develop
partnerships, alliances, and networks in the community to assure continuous political and financial
loyalty.
Global Regulatory Compliance
The International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations
(EAR) are two important United States export control laws that affect the manufacturing, sales, and
distribution of technology. The legislation seeks to control access to specific types of product, service,
and associated data. The goal of both documents is to prevent the disclosure or transfer of sensitive
information to foreign nationals:
 ITR contains a United States Munitions List (USML) of restricted articles and services.
 EAR contains a Commerce Control List (CCL) of regulated commercial items, including
those items that have both commercial and military applications.
To be ITAR or EAR compliant, a manufacturer or exporter whose articles or services appear on
the USML or CCL lists must register with the U.S. State Department’s Directorate of Defense Trade
Controls (DDTC). ITAR and EAR compliance can be problematic for a global corporation as the data
related to a specific type of technology may need to be transferred over the Internet or stored locally
outside United States.. It is the responsibility of the manufacturer or exporter to take the necessary steps
to certify that operations are in compliance with the regulations.

Export control laws provide for substantial civil and criminal penalties. Failure to comply with
ITAR can result in civil fines as high as $500,000 per violation, while criminal penalties include fines of
up to $1,000,000 and 10 years of imprisonment per violation. Under EAR, maximum civil fines can
reach $250,000 per violation. Criminal penalties can be as high as $1,000,000 and 20 years imprisonment
per violation.
ITAR [22 CFR 120-130]
 Covers military items or defense articles.
 Regulates goods and technology designed to kill or defend against death in a military setting.
 Includes space related technology because of application to missile technology.
 Includes technical data related to defense articles and services.
 Strict regulatory licensing - does not address commercial or research objectives.
EAR [15 CFR 730-774]
 Regulates items designed for commercial purpose, which could have military applications
such as computers or software.
 Covers both goods and technology.
 Licensing addresses competing interests and foreign availability.
 Combines commercial and research objectives with national security.

Part Two
Hallmarks ofSuccess and Failure
There are individual examples of highly effective incubators that have produced multiple successful
companies. Their success is attributed to the fact that while organizations that establish the incubator may
have had good intentions, they often lacked the capacity for the project or made critical mistakes are
difficult to overcome. Through research and interviews of some who shared their observations, the most
critical factors in the success or failure of business incubators has been identified.
FACTORS IN SUCCESS
Startup businesses play a significant role in both innovation and job creation, especially in rural
areas or small communities where business attraction efforts can be a long shot. Perhaps it is no surprise
that there is a growing interest in business incubation as an economic development strategy.
Business incubators often provided basic administrative services to tenants, though this is
becoming less common as technology reduces the need for reception, secretarial, and other office support
functions. Most importantly, successfulincubators employ a capable manager who can serve as a mentor
to the business, coordinate support provided by subject experts, schedule training and network activities,
and provide general administrative aid to the program and facility. Advanced support provided through an
incubator includes:
 Introductory and expansion of business training programs
 Business development assistance,such as forming business plans
 Management assistance and management team development
 Advanced technical assistance in areas such as human resources,inventory management,
process development, product design and development, and financial management
 General legal assistance and regulatory compliance
 Intellectual property management and technology commercialization
 Access to,and assistance with, conventional financing, along with alternative sources
including grants, loan guarantees,non-conventional financing, angel investors, and venture
capital investors
 Networking opportunities with other entrepreneurs and strategic partners
 Marketing, procurement, and market research
 International trade assistance
 Linkages to higher education resources

FACTORS IN FAILURE
If the preceding analysis has raised some cautionary flags about the efficacy of incubation as an
economic development strategy, we have achieved our goal. It is probably fair to say that a majority of
incubators have failed to live up to the hopes of the organizations that created them. This is certainly the
sentiment of a majority of interviewed entrepreneurs.
Entrepreneurs start with the goal of luring businesses, and expand services due to weak demand.
The business space has often been the most difficult to fill, and a good number of facilities have found it
practical to convert floor area into offices in order to accommodate the businesses they are attracting.
Many entrepreneurs admit that businesses currently in their facilities are better described as tenants
looking for inexpensive space,rather than as clients with good prospects for growth.
These observations are anecdotal, and should be qualified by saying that the quality of
manufacturing tenants appears to be better in university-affiliated and industry-specific incubators, such
as commercial kitchen facilities.
The 2006 State of the Business Incubation Industry report documented a range of incubator sizes
from 1,600 to 215,000 square feet. Nearly two thirds (61 percent) were less than 40,000 square feet,
where 30,000 square feet is cited as an optimal size. Smaller facilities may not generate sufficient tenant
revenue, while larger facilities can take too long to fill, resulting in higher overhead costs for vacancy.
Despite the outright failures and suboptimal performers,some incubators have produced very
good results. And even while some entrepreneurs may honestly admit the shortcomings of their own
facility, they are not quick to dismiss incubation as a practice. These individuals had uniformly inherited
programs with inherent flaws, which found themselves hamstringed by an insufficient market, the wrong
building, inadequate budgets, or similar challenges.
KEYFAILURE INDICATORS
I. Successful incubators are preceded by good market research
Entrepreneurs are not advised to launch a business without first gaining a clear understanding of
market opportunity and prospective consumers. When it comes to business incubation, many incubator
projects are preceded by no market research,or an analysis that falls short of what is needed. Too often
the decision to proceed with an incubator is based on little more than a hunch.
Consulting practices are often contacted to conduct a feasibility study only to learn that the
organization has already decided that it wants an incubator. It is important, as in addition to determining if
there is a market, selecting appropriate targets,and defining the needs of the market, for the analysis to
point to alternative entrepreneurial strategies and economic development needs. Some of the critical
information to be gleaned from a market analysis includes:
 Size and industry distribution of start-up activity in the market - Organizations must
know what businesses are being started in their territory. Most do not. Part of the problem is
access to anecdotalevidence. The Census Bureau and other government agencies are the
chief sources of industry data for the majority of organizations and consultants.

 Private sources - Use of externaldata provides more detailed informational at a substantial
cost. Dollars spent on critical data is never too much to determine the merit of a project.
 Data should provide information on business starts by year - This includes details of the
industry sector,employment, and survival rates. It should also provide information on the
general economy including existing small businesses that may be part of the incubator
market.
 Importance ofanalysis should not be discounted - Crunching numbers provides hard
evidence to define the market opportunity and make decisions.
 The realistic market area that will be served by the incubator – It is crucial to evaluate
the willingness of tenants to commute to an incubator facility. Most entrepreneurs are not
willing to define their market area outside a 20-mile radius. Political boundaries also come
into play; “If I am starting a business, why am I going to want to add the extra challenge of
learning the taxes and regulations of two states?”
 The existing provider network and competition within the market area – An analysis
should consider complimentary and competing facilities and service providers in the region.
 The asking rent for traditional office or industrial space in the area must also be
considered - Inexpensive rent should not be the primary advantage of an incubator space.
 A feasibility study takes market research a step further. In addition to examining the
market, a feasibility study will assess the financial performance,capabilities of the
organization, and capacity of service providers.
The value of market research should not be underestimated. Too often, economic development
organizations are willing to overlook this step, move forward with a weak analysis, and ignore the data in
pursuit of a high profile industry. This mentality negatively correlates with a decision to proceed on little
more than unsubstantiated market perceptions.
II. Successful incubators are designed to respond to the unique conditions within their market.
What worked in one community may not work in another. It is not intelligent to copy what one
business did in another place and time. Economic developers should focus on selling the idea of
incubation to stakeholders and investors. The questions to ask,in the right order, are:
1. Is there a market for business incubation, and if so, what is that market?
2. What is the best entrepreneurial development strategy to serve that market?
3. What is the probability of success,what must be in place for success, and what are the
outcomes that should be expected?
4. What case studies can be learned from, and what incubators may be used to benchmark
progress?
These questions yield an aggregation of ideas from many sources. They also identify outside
resources and opportunities for collaboration.

III. Successful incubators have a clear mission statement and follow well-defined measures of
success.
Simply put, the purpose of an incubator should be delineated through a clear mission statement. This
provides an outline of the program’s target audience, the expected outcomes, and details how business
objectives will be achieved. Having a well-defined mission statement serves many purposes:
 The mission statement provides an overall measure of success. It declares the purpose(s) of
the incubator, whether that is to improve the long-term survival rate of startups, create jobs,
or promote minority business development.
 The mission statement identifies whom the incubator is designed to serve. This might include
specific industries or targeted entrepreneurial groups. Tenants and clients are selected based
on these targets.
 The mission statement defines the incubator’s value proposition. Ultimately, this is the
quality the incubator adds to client relationships. , In most cases,the mission statement will
also identify how the incubator is differentiated from providers of similar services. This value
proposition is at the core of the incubator’s marketing message.
 The mission statement reflects consensus. It aligns the organization’s board, staff, funders,
and other stakeholders. It helps the organization remain centralized and avoid being pulled in
opposing directions, as well as helps align business design with potential supporters
To establish and gain continued support, an incubator will need to have a mission that is broad
enough to appeal to key investors and groups providing consistent sponsorship. At the same time, an
incubator must develop a narrow focus that is useful in producing visible results.
Lastly, an incubator must assess whether the potential mission (as well as programming) may be
at odds with the needs of targeted clients. Common examples include goals like job creation and business
formation.
Often, the business will be best served by not creating jobs. Businesses can prosper through
licensing technology rather than commercializing personal efforts. Licensing and commercialization may
be cause to reconsider an organization’s mission. Successfulincubators begin with a program, and then
look for a location. Choosing the wrong location can lead to a failed incubator. The most common reason
incubators choose the wrong location is failure to prioritize the needs of the client. Incubators can too
easily become motivated by reasons that should be seen as secondary. The following are some examples.
 There is an available building in need of a use. It is very common for economic development
organizations to look at an empty building and think that it is a potential location for an
incubator. Very often, that building has been chronically vacant,may have challenging
physical issues related to layout or condition, or be offered to the organization at a reduced
price or no cost at all. In interviews with incubator managers, the most common complaint
was that the program was built around a building first, rather than the client and market.
Many such buildings were too large, poorly designed, had severe maintenance issues, were
located in a poor area,or had other faults that hampered incubator growth and development..

 The organization wants an anchor in its industrial park. Putting a new building in an
industrial park may seem like a win-win solution. The park gets an anchor to help draw other
businesses, and the organization gets an incubator. However, this is only true if the
incubator’s clientele are the kind of businesses that would locate in the industrial park in the
first place. Since most incubators attract professional and technical services, and other office-
based startups, this is most likely not the case. If an incubator is focused on technology or
creative services, a location in a mixed-use district may be a much more appealing
environment for prospective tenants, who may also find their clientele located nearby.
 If an incubator is affiliated with a college, it is often located on the University’s campus.
Businesses appreciate the advantages of having a college in the community, which provides
access to resources and expertise found on campus. Most businesses however, do not want to
be located on-campus. They do not want to deal with campus parking. They do not want to be
in an institutional building. They do not want to contend with a large bureaucracy. They want
to be among their peers in the business community.
Incubators are businesses. They need to think like an enterprise and place the needs of their
stakeholders and clients first. This requires selecting their location based on the desires of their targeted
businesses.
Taking the topic a step further, some prospective incubators may need to consider whether they
should have a physical location. Some entrepreneurs forming business congregations do not care to have a
conventional office. Virtual incubation-providing all of the services of an incubator without providing a
physical space-is a potential solution.
IV. Successful incubators align partners and secure long-term commitments necessary for the
incubator to generate results.
Nearly all business incubators need a large initial capital outlay and annual subsidies to remain
sustainable. These are simple facts that must be accepted by an organization before it commits to an
incubation project. Once this is accepted,it is necessary to align funding and secure commitments of
ongoing financial support.
Funding may include cash from grants, contributions, investors, or donations of in-kind services
or assets. A word of caution is warranted with in-kind contributions. In-kind contributions can have value
or can become liabilities, such as when a poor location comes at little or no cost. Another example of such
kinds of dangerous obligations occurs when in-kind services,like technical assistance and programs, are
of an inferior quality or not well matched to the needs of clients.
Organizations must also consider their ability to become dedicated to long-term funding
commitments.
V. Successful incubators receive a majority oftheir funding from rents and fees paid by their
client companies.
Only 20% of incubators become profitable ventures. This 20% becomes successfulby picking the
best prospects and taking an equity stake in the business. At the same time, rent, fees for services,
class or program registrations, and other fees should be sufficient to fund a significant part of the
business incubator’s operational costs. There is a good deal of truth to the statement that if a
business is unwilling to pay for services, there is either a problem with the services offered (poor

quality or poorly matched to business needs) or the business is at risk (insufficient funding or
unwillingness to seek required expertise).
VI. Successful incubators have, and stick to sound policies for tenant selection, continuation,
and graduation or exit.
If an incubator can find and recruit the tenants best fitted to its goals, it is more likely to produce
successfulgraduates. The problem is that many incubators do not determine what basic requirements
must be met for an applicant to be selected,or if they do, they may feelpressured to lower standards in an
effort to lease vacant space. Before long the incubator can become stagnate,with its valuable space filled
by businesses without solid prospects for growth, unable to benefit from available assistance, or simply
taking advantage of space at a subsidized price.
The following are some of the considerations that are used to determine eligibility for admission
into incubator programs, based on the needs and desires of each particular program:
 Age ofthe business. Most incubators will only accept businesses that are “emerging”, or
transitioning from an early formative stage to one where the business is beginning to develop
products, markets, and other traits of a viable business. A smaller number of incubators will
also consider businesses that are making significant changes,such as transitions in
ownership, products, and market focus.
 Business organization. While it is unusual for an incubator to accept nonprofit tenants, this
may be a factor to consider on a case-by-case basis,rather than enforcing blanket exclusion.
Nonprofit organizations may have the potential to achieve incubator goals such as job
creation or support infrastructure for targeted industries.
 Number of employees. Space limitations are only one reason that many incubators will not
accept applicants with more than two to five initial employees. Having a larger number of
employees may signal that the company has already reached a level of maturity where it does
not need assistance from the incubator.
 Financial capacity. Financial capacity is often assessed as the ability to meet incubator rent
and program costs and fund the business’s developmental needs. This capacity may be
demonstrated through capital reserves or existing revenue.
 Potential for growth. Two measures of growth potential are evaluated most frequently. The
first is the market demand for the product or service provided by the company. The second is
the time it takes for a product or service to commercialize. A reasonable time is considered
approximately two years.
 Market. Businesses that market a product or service outside of an area,generally in another
state or internationally, will often be favored over those serving local markets. National,
global, and cross-cultural businesses are more likely to bring new wealth into the local
economy.
 Potential economic impact. Businesses that demonstrate the potential to greatly benefit the
community are preferred. Benefits to these businesses may include job creation prospects,
economic diversification, high profile products or services, linkages to a desired industry, or
similar traits.

 Technical and management capabilities. At a minimum, a business incubator will want to
be assured of the technical capabilities and industry knowledge of business owners and key
employees. It may also assess the basic business management capabilities of the management
team, though developing these skills may be a part of the incubation process.
 Potential to benefit from incubator services. Each potential tenant has unique needs. Some
may be qualified enough that they will not gain much through an incubator’s package of
services. Other companies may have needs that are well beyond the ability of an incubator to
provide meaningful assistance. It is the responsibility of the incubator to evaluate a
company’s needs and determine if it will be able to have a significant impact on the
business’s operations.
 Compatibility with other businesses in the incubator. Physicaland intellectual conflicts
should be considered in the evaluation of an applicant.
 Pre-requisite programs. A smallnumber of incubators require applicants to first complete a
class or training program before applying for admission.
As a part of the application process it is a standard requirement for prospective tenants to submit
a well-developed business plan along with financial documentation that may include company financial
statements,projections, and personal finances.
A Non-Disclosure Agreement (NDA)2
established conditions of continuing in the incubator. In a
NDA, a company should agree to, and comply with requirements such as:
 Allowing confidential review of company financial statements by incubator staff
 Attending a minimum number of incubator functions
 Completing specific training and technical assistance programs identified in the agreement
 Participating in periodic progress reviews (quarterly or semi-annually)
 Complying with applicable local, state, and federal regulations
 Operating the business as a full-time capacity
If a business has not, or is unable to, meet the above requirements, then it may be a good time for
the business to exit. An “exit strategy,” discussed in the following section, is very important in the
business incubator process. A good incubator will work with its tenants to prepare a plan for leaving the
2 A unilateral non-disclosure agreement is a contract in which one party agrees not to disclose certain
information of another. A mutual non-disclosure agreement,on the other hand, is when both parties agree
to not share the other’s information.

incubator. This strategy may lead to the creation of additional marketing and the establishment of policies
and procedures for the new site.
VII. Successful incubators have strong management and well-qualified service providers.
Finding qualified service providers may be one of the most difficult challenges for any
entrepreneurial program. Concerns might include whether the region has the level of qualified expertise
needed by clients, whether the potential service providers understand and are a good fit for clients, and
the cost of he services being provided.
Examples of the kinds of service providers typically sought by entrepreneurs include accountants,
attorneys, designers, human resources professionals, marketing specialists, and technology experts. The
incubator will often want to establish relationships with financial providers as well, including
conventional lenders along with angel investors, venture capitalists, and others. Additionally, it may
identify mentors to provide general advice, such as prior successfulentrepreneurs or subject experts like
academic researchers.
VIII. Successful incubators embrace an element ofrisk-taking, as do the entrepreneurs they
serve.
Entrepreneurs often have the ability to see opportunities or approaches that others may not desire
to approach. They are inherently risk takers. Economic developers, and especially their boards, seldom
share that trait. They are more prone to having a “plays it safe” mentality that can affect the service
providers used by the organization. This impacts the program in two ways; first, it inhibits the ability of
the organization to identify promising startup opportunities and second, the conservative approach may
discourage clients by providing advice that hampers the ability to make significant breakthroughs.
There is nothing wrong with a good dose of reality, but not at the cost of an open mind.
IX. Successful incubators seek objective feedback from stakeholders,investors, donors,clients,
sponsors,service providers, and the community.
Good measurement goes beyond counting the number of individuals attending a training session
or recording an occupancy rate. Incubators need to understand how various stakeholders perceive their
operations. BI’s should realize how their programs and the incubator itself are valued
This constant feedback, obtained through evaluations, surveys, and candid discussions, provides
the organization insight to modify programs and respond to market demand. Organizations that do this
often face unflattering results at times. This is not a failure, but rather a process opportunity to learn and
improve service offerings. Incubators that do not seek candid feedback run the risk of alienating potential
clients, offering irrelevant or ineffective programs and services, losing supporters, and ultimately failing
as an economic development strategy.
X. Successful incubators knowthat it can take years to see results.
Economic developers are pressured by boards, politicians, and the public to produce rapid results.
Incubation is not a strategy designed to score quick successes. It is not uncommon for the development
process to take a year or longer, followed by another year in which the program implements programs and
leases space. The first successfulgraduates may not appear until severalyears after the decision is made
to create an incubator. Interested parties need to be willing to understand this, and commit to long-term
investments.

XI. Successful incubators adapt to changes in their economy, technology, and the needs of their
market.
Any program established today may become irrelevant in a short period of time. Industries shift.
Breakthrough technologies change work and lifestyles. Economies go through cycles of growth and
contraction. The needs of the area’s entrepreneurial community change. Staff changes. New resources
become available. With these and other changes, the incubator program must be able to adapt, reposition
itself, and remain relevant in the marketplace.
Incubation can be an effective entrepreneurial development strategy that drives intensive
resources to companies targeted for growth. Unfortunately, many of the organizations that attempt to
develop incubators misread the market, lack long-term committed support, or do not have the technical or
financial capabilities necessary to be in business. For these and others, the greater question may still be
whether incubation is the right approach to achieve the organization’s goals.
It is not hard to image how an economic development organization might add a layer to the
model, supplementing the peer-based education, mentoring, and networking of a co-working platform
with the more intensive and individualized services normally delivered in an incubator. Advantages might
include cost – the vast majority of co-working space is self-funded - the ability to reach a far greater
number of businesses than might an incubator, and a lower draw on the technical resources of the
organization.
Ultimately, the best approach can only be determined by understanding the organization’s goals,
its financial and technical capabilities, and the market. It is important, though, to understand that there are
no good alternatives to traditional business incubation.
Exit Strategy
An exit strategy is a planned way to close a business without damaging personal finances and the
financial investments of external support. Astute entrepreneurs do not risk more of their own money than
necessary. The most common exit strategy is to close and sell a business.
Freelancers,sole-proprietors, and owners of very-small businesses do not have the capacity to sell
personal enterprises. If a business has “tangible assets,” it may be able to market its operations for sale.
Another option for such businesses is to sell under “good-will” and forfeit the rights to the business name.
If none of the above suggestions are plausible, a business owner will simply “go out of business.”
WHEN TO HOLD . . . WHEN TO FOLD
Entrepreneurs tend to be wary of global trends. Therefore,it is important to know when to take a
risk, and when to “play it safe.”
Keep the eye on the ball – If an entrepreneur is a good manager, he knows how to ensure success
and identify the early signs of failure by tracking key business indicators. There are times when a business
owner should be consciousness of the health of a personal venture. Below are common signs of business
risk, accompanied by suggestions for how to confront each obstacle.
 Employee morale is down.
 Employees continually fail to meet standards.
 No continuous learning is taking place.

 Staff turnover is higher than usual.
 Clients are taking longer to pay bills.
 Customer complaints and negative comments increase.
 A significant customer or contract is lost.
 Sales leads. In other words, it is difficult to track where the next deal will come from.
 Inventory is increasing.
 Profits are decreasing.
 Chronic cash flow problems.
 Inflexibility – resistance to change.
 Productivity is down.
 An entrepreneur does not feel like he/she can take a vacation.
 A negative change in relationship with the personal banker –the bank denies further loans.
 Top management defections.
 The 'fun' factor is dwindling – the entrepreneur’s heart is not in it anymore.
BUSINESS FAILURE; WHAT TO DO NOW?
According to small business statistics, 50% of small businesses fail in the first five years. That's a
sobering statistic, leaving lots of dazed, depressed,angry and confused former business owners needing
help. The following are steps that should be taken when closing down a business:
Shutting down a business due to failure is a very emotional time for most people. However,there
are still obligations beyond this point. Follow these steps until the business is properly closed:
 Landlord - If renting or leasing, let the landlord know personal plans as soon as possible. The
landlord might suspect business failure if rent has come late over the past severalmonths. If a
yearly contract has been signed, it may be mandatory to wait for the lease to run out. The landlord
has the potential of letting renters “off the hook” early, however a renter may have to sublease the
property in the event of early departure from the agreed contract dates.
 Utilities – Close business accounts as soon as possible to prevent recurring charges. Utility
companies are often more than willing to help with this step in the process.
 Contractual obligations - Review any signed extended contracts. The entrepreneur may be stuck
paying the contract until it is completely settled Remember next time, don't sign for anything.
*Credit Card processing equipment is the most common asset for a year after a business is closed.
 Employees – Inform employees once the decision is made to close the business. Level with them
as soon as possible, and help them find other work. If provided with insurance, employees will be
protected by the COBRA Act3
. This Act allows employees to continue paying for their own
insurance for severalmonths. The owner retains the obligation to provide a W-2 next tax season.
3 The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their
health benefits the right to choose to continue group health benefits provided by their group health plan for limited
periods oftime undercertain circumstances such as voluntaryorinvoluntary job loss,reductionin the hours worked,
transition betweenjobs,death,divorce,andotherlife events.

 Government – There are many tax details for businesses, especially for employers or
corporations. Closing a business needs to be done properly. For U.S. businesses, this page at the
IRS website will show what needs to be done. If not in the US, look for information at the
country government's website.
 Business assets & liabilities - Make a list of all the assets the business has paid for, including
computers, furniture, display equipment or other such materials. Additionally, a list of personal
purchases should be made. Enter all the information on both lists into a database. Keep both lists
in a secure location with other important documents.
 Information -Back up all information from business computers or other technological devices.
Keep it somewhere safe. Make a list of business liabilities. Write down how much is owed for
each. It is important to be able to provide this information up to seven years after the shut down
of the company.
 Inventory – In the case of excess inventory, and it is possible to retail with B&M locations,
conduct a “business sale” to get rid of as many products as possible. Other options include
Craigslist or eBay for quick cash gains. Do not forget to save receipts for next tax season. A hired
accountant will need to see what was paid & the losses incurred for each item.
 Contacts - If It is best to write a simple “I'm closing my business, thanks for your support” letter
to suppliers, other business associates,and loyal customers,. Keep it simple and factual. They
may be valuable contacts later.
 Social Media - Make sure to terminate all social media accounts (i.e., Websites, Face Book,
Linked In, Tweet,etc.). In this day and age, this is very important. Online hackers can use past
social media information to inflict personal damage to the entrepreneur,associates,and the
business.
 Debt and creditors - This can get “ugly” realfast. Get ready for a roller coaster ride. Credit cards
& bank loans want their money now and they don’t want to hear excuses. It is mandatory to
continue to make payments on time. If this is done, all should be well. Contact the company to
close the account and work out a payment schedule. If it is difficult to continue to make
payments, prepare for a nasty confrontation with the world of debt collectors. However,each
individual is entitled to certain debtor’s rights.
Remember: Keep all paperwork in a safe,accusable place. Crooks can use business D&B and IRS
numbers to cause further damage that would fall under the personal liability of the entrepreneur. During
the next tax season, the entrepreneur will still be faced with creditors. Before this time however, it is
important to grieve the loss of the business, and deal with the stress of closing operations. Circumstances
will improve, often much sooner than believed.

CLOSING A BUSINESS CHECK LIST
 Make final federal tax deposits
 Electronic Federal Tax Paying System (EFTPS)
 File final quarterly or annual employment tax form.
 Form 940, Employer's Annual FederalUnemployment (FUTA) Tax Return (PDF)
 Form 941, Employer's Quarterly FederalTax Return (PDF)
 Form 943, Employer's Annual Tax Return for Agricultural Employees (PDF)
 Form 943-A, Agricultural Employer's Record of FederalTax Liability (PDF)
 Issue final wage and withholding information to employees
 Form W-2, Wage and Tax Statement (PDF)
 Report information from W-2s issued.
 Form W-3, Transmittal of Income and Tax Statements (PDF)
 File final tip income and allocated tips information return.
 Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips (PDF)
 Report capital gains or losses.
 Form 1040, U.S. Individual Income Tax Return (PDF)
 Form 1065, U.S. Partnership Return of Income (PDF)
 Form 1120 (Schedule D), Capital Gains and Losses (PDF)
 Report partner's/shareholder's shares.
 Form 1065 (Schedule K-1), Partner's Share of Income, Credits, Deductions, etc. (PDF)
 Form 1120S (Schedule K-1), Shareholder's Share of Income, Credits, Deductions, etc. (PDF)
 File final employee pension/benefit plan.
 Form 5500, Annual Return/Report of Employee Benefit Plan
 Issue payment information to sub-contractors.
 Form 1099-MISC, Miscellaneous Income (PDF)
 Report information from 1099s issued.
 Form 1096, Annual Summary and Transmittal of U.S. Information Returns (PDF)
 Report corporate dissolution or liquidation.
 Form 966, Corporate Dissolution or Liquidation (PDF)
 Consider allowing S corporation election to terminate.
 Form 1120S, Instructions (PDF)
 Report business asset sales.
 Form 8594, Asset Acquisition Statement (PDF)
 Report the sale or exchange ofproperty used in your trade or business.
 Form 4797, Sales of Business Property (PDF)
Summary
The following are summaries and observations of successfully replicated business incubator pursuits:
 Quality product and excellent customer service
 Business owners replicated because of growth in sales
 Businesses that planned for replication from the beginning had better success. This included how
the company was organized, systems were created,and products were selected,all with
replication in mind

 Business owners were open to adapt their business models to make it easier to replicate and have
greater Kingdom impact
 Systematic training and processes facilitated positive business replication
 Previous business training was not seen as a prerequisite. However,expert knowledge in the area
of the service or product offering was a reoccurring theme
 The presence of a strong board of directors or advisors induced business success
 Christ-followers at every level of the organization (not just top leadership) characterized the
system
 Competition analysis allowed severalof the businesses to maintain and acquire more market
share
 Replicating a BIM franchise was easier with a supportive team
 The entrepreneur understood and paid close attention to the local business climate including visa
rules, tax laws, etc. An expatriate may not know these things in the initial stages of starting a
business. Trusted business advisors and local experts help them
 A best-practice replication model is a company that is developing a networked Donor Advised
Fund Board driven operation
 Independent business owners contribute to the success of the network.

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