KHIC Starts Incubator in London Offices

Wednesday September 27, 2006

New technology-oriented business incubator in London

to improve success rate for start-up companies

 

LONDON, Ky. – It’s an equation that requires a tutor:

Small businesses account for 60 to 80 percent of new U.S. jobs, and they employ 70,000 people in Kentucky, but roughly 80 percent of start-up small businesses end in failure.

Now, thanks to Kentucky Highlands Investment Corporation, entrepreneurs will have the help they need to improve those statistics.

KHIC has started a small business incubator at its headquarters in London, which is large enough to house three companies. It will focus on technology businesses or those that leverage technology in their business model.

“This is another way that Kentucky Highlands is working to bring jobs and economic diversity to the region,” said Jerry Rickett, president & CEO of Kentucky Highlands. “Our board and staff created a 10-year plan last year. An important part of that plan is assisting entrepreneurs and small businesses.”

Bob Wilson, who is the director for the Center of Entrepreneurial Growth in the Tennessee research corridor and a consultant for KHIC, is overseeing the incubator. He has run two other successful business incubators in the past –ORNL in Oak Ridge, Tenn., and in Knoxville at the University of Tennessee campus and has worked with more than 70 start-up companies.

 “It is important to take companies in the community that have the best opportunity for success and put all possible resources behind them,” Wilson said. “Kentucky Highlands has engaged in that for years. This is the next piece of that equation.”

There are three main benefits for a business locating in the incubator:

1.      Business owners will receive coaching and mentoring from experienced entrepreneurs as well as access to mentors and advisers during the development process. Mentors are generally retired executives or experienced executives of local, regional and national companies who want to give back to the area;

2.      They will participate in a formal entrepreneur management development training program; and

3.      Entrepreneurs will have access to capital if their businesses meet milestones and accomplish specific items in their action plan.

In addition, Wilson said there is no additional cost for the formal development program other than a commitment by the companies to participate in the counseling sessions and attend the designated training and other events. Rents in the incubator are comparable to what other local facilities charge.

Interested businesses can contact Bob Wilson at bwilson@khic.org. There is a screening process, which typically takes about 30 days. Small businesses generally spend between 18 months to 36 months in an incubator setting before graduating to their own facility.

In addition, training classes currently are being held from 8 a.m. to 10 a.m. every second Tuesday of the month at KHIC’s office, 362 Old Whitley Road in London. At each class, a different topic is discussed. Two training classes have been held, and attendance has been at near capacity. Entrepreneurs from as far away as Louisville have participated in the classes.

For more information, call 606-864-5175.

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