UCF Business Incubation Program

A CASE STUDY OF THE ENTREPRENEURSHIP ECOSYSTEM

Tarek Salah, Nile University , Center for Innovati on & Competi ti venessArab Science & Technology Foundati on PM,

Egypt, Tarek.kamel@nileu.edu.eg

IAMOT2009, Orlando, Florida, 5-9 April 2009

AGENDA

Research Overview

UCF Business Incubation Program (UCFBIP)

Sustainability Model

Key Partners

Facilities

Incubation Process & Key Performance Indicators

UCF Office of Research and Commercialization (ORC)

UCF Venture Lab (VL)

Disney Entrepreneur Center (DEC)

The UCFBIP Entrepreneurship Ecosystem Interactions

S&T Policy Implications to support the Entrepreneurship Ecosystem.

RESEARCH INTRODUCTION

Growing interest to grow business incubators in the Arab World.

Business incubators viewed as key economic development tools.

Key research points: How effective are these systems? What supporting environment should be there? How this should affect S&T Policy development within developing

countries to apply these systems effectively to achieve their anticipated objectives?

Task: Study the UCF Business Incubation Program aiming to understand the

whole Entrepreneurship Ecosystem around that program influenced by the National Innovation System.

RESEARCH METHODOLOGY

Field Research at UCF: Attending some of the daily meetings at UCFBIP, visiting incubator sites and partners sites, investigating websites, interviewing key persons and presenting the work to all for validation.

Persons interviewed:1. Dr. Tom O’Neal, UCFBIP Director & UCF VP for Research2. Gordon Hogan, Business Development Executive & Manager of 2 sites

(Photonics & Downtown Orlando)3. Carol An Dykes, Technology Incubator Site Manager4. Esther Vargas Davis, Seminole County Incubator Site Manager5. Dr. Cameron Ford, Center of Entrepreneurship and Innovation (CEI) at COBA,

UCF6. Kirstie Chadwick, Venture Lab Director & Coach7. Jerry Ross, Executive Director, Disney Entrepreneur Center (DEC)8. Dr. Yasser Hosni, UCF Industrial Engineering and Management Systems.

Orientation about UCF Technology Centers and facilities9. Rene Ayala, Administrative Assistant at UCF Technology Incubator site.10.Managers of some incubated companies and graduated ones from the UCFBIP.

Seminole County

City of Winter Springs

UCF BUSINESS INCUBATION PROGRAM

The UCF incubation program is sponsored and managed through a collaborative partnership between:

UCF

Orange County

The City of Orlando

Florida High Tech Corridor Council

UCF BUSINESS

INCUBATION PROGRAM

MissionA University-driven community partnership providing early stage companies with the enabling tools, training and infrastructure to

create financially stable high growth enterprises

SINCE ITS FOUNDING IN 1999, THE UCFBIP HAS HELPED MORE THAN

100 EMERGING COMPANIES, CREATE OVER $500 MILLION IN ANNUAL REVENUE AND MORE THAN 900 NEW JOBS WITH AN AVERAGE SALARY OF $59,000.

NAMED THE TECHNOLOGY INCUBATOR OF THE YEAR IN 2004. RECENTLY NAMED AMONG TOP 10

IN THE US.

SUSTAINABILITY MODEL

Funding from key stakeholders for economic development & diversification, technology commercialization, and Generating high-growth companies that create high wage jobs and pay taxes to the government.

Having stakeholders embrace this mission, funding could be secured for as long as successful companies graduate and sustain.

No equity sharing in startups after graduation.

The rent paid by clients only covers half the rent of buildings.

UCF BUSINESS INCUBATION PROGRAM (UCFBIP) –KEY PARTNERS

UCFBIP

SBDC: UCF Small Business Development Center

DEC: Disney Entrepreneur Center

ORC: UCF Office of Research & Commercialization

COBA: College of Business Administration

VL: UCF Orange County Venture Lab

COP: College of Optics and Photonics

AeA FC: American Electronics Association Florida Council

iLLC: Inflexion LLC Venture Capital

UCF BUSINESS INCUBATION PROGRAM – FACILITIES

With 5 existing locations the Incubator consists of over 80,000 square feet

4. Downtown Orlando Technology and High

Growth Firms1. The technology

incubator at Research Park + Bennet Complex

Building

2. Photonics Incubator at CREOL on UCF

Campus

3. Seminole Country/Winter

Springs incubator

5. Orlando Business Development

Center, District 2 Incubator

UCF BUSINESS INCUBATION PROGRAM – Services List

Office Supplies/Services Furniture

Telecommunication

Government Contracting

Insurance

Business Counseling

Finanical Institutions

Media

Real Estate/Housing

Human Resources

Marketing/PR/Websites

Funding Sources

Legal Services

Finanical Services

0 2 4 6 8 10 12 14 16 18

3

7

8

9

10

10

10

11

12

15

16

17

18

UCF BUSINESS INCUBATION PROGRAM – Process and Key Performance Indicators

# of companies admitted into the incubator

# of graduating companies

# of jobs created

Pay Level to Jobs created

Annual Revenue for all companies

Equity Angel/VC investments in graduating companies

UCF ORC DEPARTMENTS

INCUBATION PROGRAM RELATION WITH ORC

Sponsored Programs

Venture Lab

Technology Transfer

Incubation Program

Compliance

Research Foundation

Centers & Institutes

UCF Office of Research &

Commercialization

Highly interacts with all Other components …

UCF VENTURE LAB

Students from COBA

and CEI work as

interns in VL

DISNEY ENTREPRENEUR CENTER

Mission:The Disney Entrepreneur Center is a unique public-private partnership dedicated to the development, growth and success of small businesses.

SERVICE PROVIDERS @ DEC

Through a cooperative effort of a diverse group of business support organizations, the Disney Entrepreneur Center offers professional business assistance, quality educational programming, and access to practical industry expertise.

DETAILED SERVICES @ DEC

Offices @DEC

Premises

A shop mall for entrepreneurs

THE SCORE FOUNDATION

ENTREPRENEURSHIP ECOSYSTEM INTERACTIONS

SCORE

UCFDEC

COBACEI

SBDC

ORCTTOVLUCFBI

PResearchers

Tech Centers/

Labs

Funding Programs Gov. Support Organizations

ENTREPRENEURSHIP ECOSYSTEM INTERACTIONS 1. Researchers apply for the Incubator (Tech)

SCORE

UCFDEC

COBACEI

SBDC

ORCTTO

VLUCFB

IP Researchers

Tech Centers/

Labs

Funding ProgramsGov. Support Organizations

General Training

ENTREPRENEURSHIP ECOSYSTEM INTERACTIONS 2. Startups in the Incubator

SCORE

UCFDEC

COBACEI

SBDC

ORCTTO

VLUCFB

IP Researchers

Tech Centers/

Labs

Funding ProgramsGov. Support Organizations

Partners in Business Support

Services/VCs/AeA

ENTREPRENEURSHIP ECOSYSTEM INTERACTIONS 3. Community Entrepreneurs (Non-Tech)

SCORE

UCFDEC

COBACEI

SBDC

ORCTTO

VLUCFB

IP Researchers

Tech Centers/

Labs

Community

Entrepreneurs

(Non-Tech)

Funding ProgramsGov. Support Organizations

Community

Entrepreneurs

(Non-Tech)

ENTREPRENEURSHIP ECOSYSTEM INTERACTIONS 4. Community Entrepreneurs (Technology)

SCORE

UCFDEC

COBACEI

SBDC

ORCTTO

VLUCFB

IP Researchers

Tech Centers/

Labs

Community

Entrepreneurs

(Technology)

Funding ProgramsGov. Support Organizations

A WHOLE SME BUSINESS SUPPORT NATIONAL STRATEGY

A whole SME Business Support Ecosystem (Nation Strategy) is needed to effectively advance the economy through SMEs.

Incubators must integrate with other components within a National Innovation Management System to be used as one of the economic development strategy tools.

If support services are not market-driven and focused on their customer’s needs (the SME needs) they are likely to be irrelevant and unlikely to achieve meaningful outcomes.

Scope of S&T Policy

Priorities

S&T POLICY TO FOSTER THE ENTREPRENEURSHIP ECOSYSTEM

High Quality Research

UniversitiesMature

VC/Angel Fund Industry/Fundin

g Bodies

Technology / Research Park

Incubation Programs

Business Support Centers

Entrepreneurship / Innovation

Support Programs

Business Parks /

Clusters

SOCIETAL

MODEL

• Production capabilities & facilities• Resources existent in the country• Market maturity and diversity• Financing structures• Business types and SME challenges

•The scientific capability in terms of number of scientists, research entities & discoveries.•The national innovation system•The educational system quality•The supportive environment to technology

• Entrepreneurship spirit• Level of trust with gov. programs• Business ethics• Transparency rank of the society• Synergy degree between programs

• Executive and legislative system• Judiciary system

25

THE NATIONAL INNOVATION SYSTEM (NIS)A TRIPLE HELIX ONLY!

The nation should have a national science base in research universities, which are contributing significantly to international progress in science and engineering research and are producing research doctorates in science and engineering. This is the ‘Science Base' for the NIS.

The nation should have an internationally competitive set of industries, exporting products and/or services competitive in the global market. This is “High-Tech Industry Base” for the NIS.

The nation should have government agencies which provide research funding to universities and industries for progress in science and technology -- at standards of international frontiers of science and technology. This is “Government Policies Base” for the NIS.

High-Tech Industry

Government S&T Policy

Research UniversitiesNG

Os

NGOs with mission to support Innovation and entrepreneurship play a very important catalyst role in building up the whole ecosystem

Thanks

Tarek Salah, Nile University RA, EGYMOT President,Arab Science & Technology Foundati on PM,

Egypt, Tarek.kamel@nileu.edu.eg

IAMOT2009, Orlando, Florida, 5-9 April 2009

SUPPLEMENT SLIDES

.

UCF BUSINESS INCUBATION PROGRAM – Business Services Partners, Model of Support

Each service provider volunteers to service the incubator on a certain consulting hours.

A representative visits the incubator and the clients reserve with him if they need his support .

Service providers understand that this is not a sales/marketing pitch and that main incubator concern is to educate the clients.

If clients want to go further with the service provider, this will be managed by themselves on a contract basis between them.

There are many service providers to rotate, so they are not exhausted – maybe a certain service provider comes only twice a year.

Feedback from both parties is collected by incubator management after these meetings.

BEST PRACTICES – Incubator Program Design

Linked to a university/research park

Different stakeholders are involved – Competition spirit with other geographical locations, Advisory Board.

Strong network of community service providers

Strong focus on building successful companies & creating high wage jobs in the community – Technology Commercialization.

Clear Acceptance/graduation metrics

Effective success measures.

Strong management and leadership

Flexible infrastructure design.

BEST PRACTICES – Site Manager Competencies

Comfortable with technology

Networking – Ability to see how different people could benefit from each other

Very good at meeting people – social intelligence – people experience

Worked before with young startups or had his own startups – Entrepreneurship Skills

Balancing different stakeholders

Effective management/leadership skills

Ability to coach startups in what they don’t know - keep them focused.

MANAGEMENT STRUCTURE

Tom O’Neal Director, UCF Incubation Program

Gordon Hogan

Site Manager, Downtown &

Photonics Incubator/Business

Development Executive

Jacqueline Barton

Site Manager, Orlando Business

Development Center/District 2

Carol Ann Dykes

Site Manager, Technology Incubator

Esther Vargas Davis

Site Manager, UCF Incubator-

Seminole County/Winter

Springs

MANAGEMENT STRUCTURE FOR ONE SITE – The Technology Incubator site

Tom O’Neal Director, UCF Incubation Program

Gordon Hogan~ Business Development

Executive

Carol Ann DykesSite Manager

Rene

Ayala

Administrative

Assistant

Roy McCaw

Facilities/

Telecom

Manager

Jessey SchmitClient

Administrator

o Reception Duties.o Assistant to Carol & Gordon.o Calendar of Meetings, Business

Services Appointments, lunch&learn events.

o Building related Issueso Uses incutrac S/W.

o Handles all leasing /rental payment & legal issues.

o Official Letters & agreements.

o Checklists of moving in & out of the incubator.