THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, August 23, 1996 TAG: 9608230099
SECTION: LOCAL PAGE: B6 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: PULASKI LENGTH: 34 lines
The New River Valley's economic development organization is using a $2 million federal grant to build a center that will subsidize tenants starting small businesses.
The New River Valley Competitiveness Center in Pulaski County will be a small business incubator, where multiple tenants are given flexible leases for light manufacturing and office space at below market rates.
The tenants will share services such as photocopying, facsimile machines, computers and conference areas along with clerical and technical support.
While 75 percent of all new businesses fail within the first five years, 80 percent of companies housed in small-business incubators survive, according to the Small Business Administration.
U.S. Rep. Rick Boucher said Thursday that the Economic Development Administration grant is a good investment of public funds because the amount will be repaid many times as the region's economic and tax base expands.
``Incubators are a time-proven concept for the launch of small businesses, and nationwide small firms are the wellspring of economic growth, creating approximately 80 percent of the new jobs in today's economy,'' said Boucher, D-9th.
The small business center will be the first building in the New River Industrial Park.
The federal Appalachian Regional Commission said earlier this month that it is providing $500,000 to construct water and waste water systems for the industrial park. by CNB