Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, November 15, 1994 TAG: 9411150088
SECTION: BUSINESS PAGE: C-8 EDITION: METRO
SOURCE: DAN CASEY STAFF WRITER
DATELINE: LENGTH: Medium
The resolution, which passed unanimously, envisions a state, federal and privately funded incubator. Incubators generally provide start-up businesses with low rents, shared services and free operational and technical advice for their first three to five years.
Having one in Roanoke also could serve as a pilot project for small-business resurgence efforts here and elsewhere in Virginia.
Monday's action follows a series of meetings between city and state officials in which key members of Gov. George Allen's administration expressed interest in a business incubator in Roanoke, said City Manager Bob Herbert.
"It would help improve the success rate of small businesses in the Roanoke Valley," said Councilman William White. "This ties hand-in-hand with some [city efforts], which are already going on."
An incubator in Lynchburg, which was launched in 1989, was so successful that it doubled in size after only three years. It was built with a combination of city and federal money.
North Carolina has partially or fully funded 13 incubators and is devoting millions of dollars toward
more of them, said Phil Sparks, acting city economic development chief.
He told council that on average, 80 percent of new businesses fail within their first three years, but of those in incubators, 80 percent survive for at least five years.
The city and the Roanoke Regional Chamber of Commerce have been working for five years toward building a business incubator.
The idea moved to the front burner last summer when Councilman Mac McCadden won approval of a request that the city administration report on the feasibility of potential incubators.
State Secretary of Commerce and Trade Robert Skunda reviewed city conceptual plans for an incubator during a visit to Roanoke two weeks ago. And last week McCadden arranged a meeting between city officials and Anthony Sgro, a special assistant to the governor for appropriations.
Allen is preparing budget amendments he will introduce to the 1995 General Assembly. McCadden said the city should know if the incubator is included in those proposals by Saturday, when Allen unveils them.
State Sen. Brandon Bell, D-Roanoke County, also is sending a letter to the governor, voicing support for the state funding.
Herbert said the city could realize additional federal funding if it is granted status as an "Empowerment Zone" by the Economic Development Administration. The city applied for the designation last spring and was supposed to hear if it won the designation by Oct. 1. But there is no word on that so far.
by CNB