NBIA Supports Legislation to Strengthen Ties Between Academia and Entrepreneurs

August 21, 2001

Contact:
Linda Knopp, PR Specialist
740-593-4331; lknopp@nbia.org

ATHENS, Ohio—A Senate bill designed to increase the role colleges and universities play in new business development would help strengthen local economies and improve educational opportunities, the National Business Incubation Association (NBIA) announced today.

The Linking Educators and Developing Entrepreneurs for Reaching Success (LEADERS) Act, a bipartisan initiative recently introduced by Sens. Edward M. Kennedy, D-Mass., and Mike DeWine, R-Ohio, would create a $20 million fund to provide competitive grants to business incubation programs affiliated with colleges and universities.

"When colleges and universities use business incubation as a strategy to achieve academic, research and community service missions, both academia and entrepreneurs benefit," Dinah Adkins, president and CEO of NBIA, said. "Academic-affiliated incubators provide students and faculty with real-world case studies and internship opportunities, while giving new businesses access to a skilled workforce and wide range of campus-based resources."

Approximately 27 percent of the incubators in North America are currently affiliated with academic institutions. Other incubation programs that partner with local colleges or universities to promote small business development and entrepreneurial education are also eligible to apply for funds under the legislation.

While many Americans dream of starting their own businesses, most entrepreneurs find that sustaining their ventures over time can be difficult. Incubators help emerging businesses survive the risky start-up phase by providing an array of business support services, such as flexible leases and on-site business counseling. The goal of these programs is to graduate successful firms that create jobs and build wealth in their communities. Since 1980, incubator clients have created more than half a million jobs in North America.

"Research shows that entrepreneurship is strongly associated with economic growth," Adkins said. "By exposing college students to the business incubation process early in their careers, we can foster a whole new generation of entrepreneurs, which will strengthen the economy in the years ahead."

The LEADERS Act authorizes the Secretary of Education to provide matching grants to acquire or renovate incubator space, develop curricula or training for incubator businesses or managers, or conduct feasibility studies for developing and locating incubators. Priority is given to programs in economically distressed areas, those that provide strong entrepreneurial education opportunities and those that emphasize cooperation among businesses, academic institutions, and local economic and government officials.

The LEADERS Act, which was introduced earlier this month, is assigned to the Senate Committee on Health, Education, Labor and Pensions. The bill's cosponsors include: Sens. Max Baucus, D-Mont.; Jeff Bingaman, D-N.M.; Kent Conrad, D-N.D.; Jon Corzine, D-N.J.; Thomas A. Daschle, D-S.D.; Richard J. Durbin, D-Ill.; Tim Johnson, D-S.D.; Mary L. Landrieu, D-La.; Joseph I. Lieberman, D-Conn.; Olympia J. Snowe, R-Maine, and Debbie A. Stabenow, D-Mich.

For more information about the business incubation industry, please contact NBIA at (740) 593-4331 or visit www.nbia.org. With about 1,200 members from 50 nations, NBIA is the world's leading organization advancing business incubation and entrepreneurship.