Project promises to produce jobs * BUSINESS INCUBATOR: Feds give $800,000

May 10, 2010

Posted By KYLE REA TIMES-JOURNAL

Much like an incubator helps to hatch baby chicks, St. Thomas-Elgin now has an organization to nurture new business.
It's called a business incubator and comes courtesy of $800,000 from the federal government through the Community Adjustment Fund.
The project was announced at St. Thomas city hall on Friday.

Received by the St. Thomas Economic Development Corporation, the goal is to find a building in which to offer help for businesses in the service, light manufacturing and retail sectors.

The EDC hopes to have a site in place by September.

"This is about helping people get into business and helping business to be successful," said Joe Preston, Conservative MP for Elgin-Middlesex-London.
Business incubators offer administrative assistance, meeting facilities, office space and business counselling to help entrepreneurs hit the ground running and keep going.

Not all applicants are accepted and entrepreneurs have to apply and meet a set of criteria.

"This will fabulously go a long way to create new jobs for our community," said Dennis Broome, EDC president.
He noted 80% of all new jobs in Canada are created by small business, but 70% of entrepreneurs fail within the first three to five years due to lack of funding and support. By providing help, an incubator will help support and maintain those businesses, he noted.
The long-term impact could be huge, explained Helen Haddow, president of the Elgin Business Resource Centre. She said the success rate for a small business after 10 years is 70%.

But with the business incubator, that number jumps to 90%-plus.

"This is a much-needed facility in this area. It will provide additional services for entrepreneurs and businesses that will help them succeed and give them a better start in the business world," she said.

Mayor Cliff Barwick welcomed the announcement. He noted the days when a plant would come into St. Thomas and hire 1,000 people at once are probably over.
"The backbone of the economy has to be the idea person, the person who has the idea and is going to formulate a business plan and put that business plan into action. Many of these people don't have the funds to get started but now there's an opportunity for that funding," he said. "We look forward to this incubator and new jobs in St. Thomas.”