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I ! ! I ! I I ! I businesses:' lng. The proj la private ope other projects, ~-- ..... L .~, ..~,'--... nearby Jamestown, New York, and the rest, local start-ups. Enormous attention was generated when the project first opened, with 60-70 inquiries that were screened down to the first core of 7 tenants. A market study identified other possibililies. "We did a total retail analysis, but not to set up an incubator:' Weekland noted. A book- store, a video rental outlet, and a beauty shop were identified as likely candidates. All three are now tenants, with the beauty shop being formed when three home-based beauticians joined forces and opened downtown. A retail market study, says Weekland, "is useful for any small com- munity, and available fairly easily from uni- versities and planning departments:' Local support for the project was critical. The Council secured the early participation of the local public-private development council and other officials. "The majority of merchants downtown favored the project:' Weekland adds. "Some of the local realtors viewed us competitively, but we've since spun off new businesses into other loca- tions. Our perceived impact on downtown shopping has been positive. There are still detractors who think that public dollars shouldn't be in the business of housing The Council offers a variety of services to lenants which are also available to other Warren businesses, including loan packag- lng. The project may soon be transferred to a private operator to free the Council for Rural Areas Sprout Incubator Innovations Communities that have tailored the in- cubator concept to meet their local needs have been among the most innovative in- cubator developers in the country. By as- sessing the obstacles to economic development in smaller areas, they have de- vised innovative strategies for turning obstacles into opportunities. In Oklahoma, where multi-business in- cubators don't make economic sense, Rural Enlerprises, Inc. teamed up with the Kiamichi Area Vo-Tech Schools to develop 'hybrid' single-business incubators at each of four area vo-tech campuses. Although in- cubators are often defined as facilities for many businesses, the nurturing process is another critical aspect. The focus, there- fore, is on 'incubating' one business at a time. Local vo-tech schools assist with stu- dents doing incubator construction. The Nebraska Department of Economic De- velopment is looking at incubators as part of a state development strategy for rural and small communities. The Development Division, which recently completed a 16 day road show on economic development to Nebraska's small communities, may initiate a competition that challenges rural commu- nities to design innovative economic devel- opment plans which can include incubators as a component. The Sauk New Business Development In- cubator Network, based in Dixon, Illinois, is a potpourri of incubator innovations that are both forward and outward-looking. With a primary 55,000 sq. ft. incubator now operat- ing in Lee County, the network is currently making plans to open "satellite" facilities in the 4 county service delivery area (total 110,000 population). The "primary" in- cubator will handle space inquiries, and provide business consulting and financial services to the satellites, which will have room for graduates of the primary facility, and an on-site, day-to-day staff. Looking forward, the Sauk Network spec- ifies that start-ups requesting venture cap- ital assistance from the network must, in return, agree to the development of an Em- ployee Stock Ownership Plan. By doing so, the entrepreneur is guaranteed the majority interest in the firm, but employees are also guaranteed a financial stake in its future. Looking outward, the incubator network re- alized that its pool of talent, entrepreneurs, contacts and capital within the four county area was limited. Bob Hamilton, Director of the Sauk Center, explained that in Lee County, 90% of the top 50% of area high school graduates leave the area. They tend to be extremely successful and "have an in- ordinate sense of their roots in the com- munity:' Tapping that pool of community "alumni" meant developing a campaign to reach people in and outside of Dixon who could provide leads to potential en- trepreneurs or venture capital. To date the alumni network has produced 13 leads for the Sauk Incubator. A Helping Hand I The following resources are available to aid rural incubator development: I · Business Incubator Development in Rural Areas. A paper by Mark Weinberg, as- sisted by Lori Erdy. Available from Ohio University, Department of Political Sci- I ence, Bentley Hall, Athens, OH 45701. · Feasibility of High-Tech Company Incuba- tion in Rural University Settings. Available from Missouri Incutech, Inc., Route 4, Box I 519, Rolla, MO 65401 for $10. · RuraIResources Guide. Compiled by the Office of Rural Development Policy. A comprehensive guide to federal, state and private sources of assistance. Available from the U.S. Government Printing Office, Superintendent of Documents, Washing- ton, DC 20402. Stock #001019003791. $12. Additional incubator assistance and financ- ing may be available through: · Urban Development Action Grants. Avail- able from the Department of Housing and Urban Development. A 25% UDAG set- aside exists for towns under 50,000 population. · Cooperative Extension Service, U.S. De- partment of Agriculture. Agents in every U.S. county. · Farmers Home Administration. · Local community and junior colleges, and vocational-technical schools in your community. · For more information about the USDA! Main Street project, contact Willard (Bill) Phillips, Jr., Director, Office of Rural De- velopment Policy, Room 5048 South Building, Washington, DC 20250 or Scott Gerloff, Director, National Main Street Center, National Trust for Historic Preser- vation, 1785 Massachusetts Ave., N.W., Washington, DC 20036. (The videocassette summary and user guides for the Main Street videoconference will soon be available for local audiences. See "A Helping Hand" for contact information.)