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WHY VIRTUAL?

The Baldwin County Economic Development Alliance (BCEDA) completed a Small Business Incubator Network Feasibility Study, which was funded in part by a USDA RBEG grant. The study concluded that an incubator network would be successful in Baldwin County. Five new facilities of 12,000 square feet was proposed to be constructed in the cities of Daphne, Gulf Shores, Foley, Robertsdale and Bay Minette in that order. The concept and construction ideas were presented to local and city leaders. Financing options were discussed whereby the public sector, primarily the Cities, would be required to provide substantial funds (even with potential grants from state and federal sources) for the construction of the facilities and operations of the incubator.

While not totally shelving the idea of typical incubator “brick and mortar” facilities, the Alliance investigated an incubator program started in Fort Collins, Colorado, known as a Virtual Business Incubator (VBI). The Fort Collins VBI was started due to the same concerns of the substantial funds required with construction based financing. The VBI turned to the idea of creating an information and service infrastructure that would provide similar advantages to targeted businesses found within the traditional incubator. The services of the VBI are available throughout the community. Rather than being tied to a single location, the general philosophy of the program will be to provide assistance to qualifying companies regardless of their location. The Fort Collins VBI allows clients to implement their business plans, assist in the development of technology-oriented companies, in technology transfer, maximize program resources of local agencies and the universities, and create an environment in which innovation and entrepreneurial activity can be cultivated. The Fort Collins VBI has been running successfully for the past several years and therefore it is a model for the Baldwin County Virtual Business Incubator.

Some limitations of the traditional incubator include:

  • Need to operate the building the same as any real estate project.
  • Buildings consume cash flow, time and resources.
  • Lack of access to state of the art infrastructure.
  • Focus diverted from entrepreneurial activities to real estate concerns.