The Southwest Florida region, similar to our nation and the world, has been greatly affected by the downturn in the economy over the last several years. In
particular, the Southwest Florida region, with its heavy reliance on housing development and related industries and finance, has been dramatically impacted by this economic downturn, and has experienced decreased economic growth and high unemployment in both the coastal and inland regions. As part of an approach to revitalize the economy and provide diversification of our region’s economic base and to create a regional approach to economic development, a Regional Business Incubator Network is proposed.
A business incubator is an economic development tool designed to accelerate the growth and success of entrepreneurial companies through an array of business support resources and services. Business incubators are also set up to create successful companies and make an economic difference in the community. It is
Regional Economic Research Institute Page 143 believed that incubator "graduates" create jobs, revitalize neighborhoods,
commercialize critical new technologies, and strengthen local and national economies.
According to the NBIA, in 2001 North American incubators assisted more than 35,000 start-up companies and provided full-time employment for nearly 82,000 workers generating earnings of more than $7 billion. A regional incubator network is a system that links and organizes businesses incubators throughout a region.
Our study found that there are both crucial challenges and opportunities for growth and development of an regional incubator network in Southwest Florida. Based upon feedback from the study, the challenges and opportunities for the region in the development of a Regional Business Incubator Network are as follows:
Critical Challenges that need to be addressed:
Regionalism: Need to create a sense of regionalism and overcome parochial interests and attitudes.
Leadership: Essential to the development of the regional incubator network, there should be a designated leader or champion. The most frequently-recognized leader based upon analysis of regional leaders and individuals and best practice regional networks is a University or specifically, FGCU.
Trust: The building of “trust” across counties is essential.
Decreased funding (lack of available funding by public and private entities)
Lack of diversity in economic base
Infrastructure:
o Communications and bandwith o Roads
o Transportation
Regional Economic Research Institute Page 144 o Rail
Workforce talent (Creative Skills): There is a need to develop technical skills among the workforce in order to develop a workforce that can respond to medium and high tech jobs for the future.
Local and county government fees and regulations (serve as a barrier to development)
Funding/support for small business start-up and operation: There is limited funding/support for small businesses with less than 20 employees.
Community and government attitude towards growth: The challenge is community and government attitude toward growth and change.
Cost of Living (remains issue in select communities)
Land affordability and rental costs (select counties)
Perception and attitudes towards different counties (how one county views the others and how the members of the county view themselves)
Opportunities that exist:
Workforce (large number of skilled and unskilled due to unemployment)
Entrepreneurial spirit and small business orientation
Existing technology companies and structure
Lifestyle and livable Community
Weather
Environment
Low crime
No state taxes
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Health care
In closing, there are many challenges but yet opportunities for growth based upon the analysis and as reported by key stakeholders and individuals throughout the six-county region. However, key to addressing these challenges and building upon the region's opportunities is the development of a consensus among the public and private leaders, as well as the community, across the six-county region and identifying a key stakeholder to lead the effort.
SUMMARY
The Southwest Florida region for many years has had extraordinary economic growth and low unemployment rates, and frequently was regarded as one of the fastest growing regions in the county. The primary source of this economic development and growth was directed to the housing market, tourism, and the health care industry. As a result of the dramatic impact of overdevelopment, sub-prime mortgages, and
subsequent “busting” of the housing bubble, the economic prosperity of the region, the nation, and the global market has been dramatically altered. This change is particularly significant for the Southwest Florida region due to its over-emphasis on the construction and development industries and finance, and lack of economic diversity (multiple
industries) throughout the region.
It is commonly felt that economic development is part of a “three legged stool”: 1) growth and retention of existing businesses, 2) recruitment of new businesses, and 3) development of new businesses. This study was undertaken to explore a process to address one leg of this stool: development of entrepreneurship and new business
Regional Economic Research Institute Page 146 development through a regional incubator network. This study can be regarded as the first step in a process to develop a regional policy and process to compete in
tomorrow’s global market.
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Regional Economic Research Institute Page 148 Meeder, Robert A. Forging the Incubator: How to Design and Implement a Feasibility Study for Business Incubation Programs, NBIA, 1993.
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