University of Central Florida Business Incubation Program Case Study.

1. UCF Business Incubation ProgramA Case study of the Entrepreneurship Ecosystem TarekSalah, Nile University, Center for Innovation & Competitiveness Arab Science & Technology Foundation PM, Egypt, Tarek.kamel@nileu.edu.eg IAMOT2009, Orlando, Florida, 5-9 April 2009

2. 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.

3. 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.

4. 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: Dr. Tom O’Neal, UCFBIP Director & UCF VP for Research Gordon Hogan, Business Development Executive & Manager of 2 sites (Photonics & Downtown Orlando) Carol An Dykes, Technology Incubator Site Manager Esther Vargas Davis, Seminole County Incubator Site Manager Dr. Cameron Ford, Center of Entrepreneurship and Innovation (CEI) at COBA, UCF Kirstie Chadwick, Venture Lab Director & Coach Jerry Ross, Executive Director, Disney Entrepreneur Center (DEC) Dr. Yasser Hosni, UCF Industrial Engineering and Management Systems. Orientation about UCF Technology Centers and facilities Rene Ayala, Administrative Assistant at UCF Technology Incubator site. Managers of some incubated companies and graduated ones from the UCFBIP.

5. UCF business incubation program The UCF incubation program is sponsored and managed through a collaborative partnership between: Since its founding in 1999, the UCFBIP has helped more than 100emerging 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 10in the us. Mission A University-driven community partnership providing early stage companies with the enabling tools, training and infrastructure to create financially stable high growth enterprises Seminole County City of Winter Springs

6. 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.

7. UCF Business Incubation Program (UCFBIP) –key partners 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

8. UCF business Incubation Program –Facilities With 5 existing locations the Incubator consists of over 80,000 square feet 2. Photonics Incubator at CREOL on UCF Campus 5. Orlando Business Development Center, District 2 Incubator 4. Downtown Orlando Technology and High Growth Firms 1.The technology incubator at Research Park + Bennet Complex Building 3. Seminole Country/Winter Springs incubator

9. UCF business Incubation Program – Services List

10. 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

11. UCF ORC Departments

12. Incubation Program Relation with ORC UCF Office of Research & Commercialization Highly interacts with all Other components …

13. UCF Venture lab Students from COBA and CEI work as interns in VL

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

15. 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.

16. Detailed Services @ dec Offices @DEC Premises A shop mall for entrepreneurs

17. The score foundation

18. Entrepreneurship Ecosystem Interactions SCORE ORC TTO VL UCF DEC UCFBIP Researchers Tech Centers/ Labs Funding Programs Gov. Support Organizations SBDC COBA CEI

19. Entrepreneurship Ecosystem Interactions 1. Researchers apply for the Incubator (Tech) SCORE ORC TTO VL UCF General Training DEC UCFBIP Researchers Tech Centers/ Labs Funding Programs Gov. Support Organizations SBDC COBA CEI

20. Entrepreneurship Ecosystem Interactions 2. Startups in the Incubator SCORE Partners in Business Support Services/VCs/AeA ORC TTO VL UCF DEC UCFBIP Researchers Tech Centers/ Labs Funding Programs Gov. Support Organizations SBDC COBA CEI

21. Entrepreneurship Ecosystem Interactions 3. Community Entrepreneurs (Non-Tech) SCORE Community Entrepreneurs (Non-Tech) Community Entrepreneurs (Non-Tech) ORC TTO VL UCF DEC UCFBIP Researchers Tech Centers/ Labs Funding Programs Gov. Support Organizations SBDC COBA CEI

22. Entrepreneurship Ecosystem Interactions 4. Community Entrepreneurs (Technology) SCORE Community Entrepreneurs (Technology) ORC TTO VL UCF DEC UCFBIP Researchers Tech Centers/ Labs Funding Programs Gov. Support Organizations SBDC COBA CEI

23. 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.

25. The national innovation system

26. The educational system quality

27. The supportive environment to technology

28. Production capabilities & facilities

29. Resources existent in the country

30. Market maturity and diversity

31. Financing structures

33. Level of trust with gov. programs

34. Business ethics

35. Transparency rank of the society

36. Synergy degree between programs

37. Executive and legislative system

39. Thanks TarekSalah, Nile University RA, EGYMOT President, Arab Science & Technology Foundation PM, Egypt, Tarek.kamel@nileu.edu.eg IAMOT2009, Orlando, Florida, 5-9 April 2009

40. Supplement slides .

41. 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.

42. 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.

43. 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.

44. Management structure

46. Assistant to Carol & Gordon.

47. Calendar of Meetings, Business Services Appointments, lunch&learn events.

48. Building related Issues

49. Uses incutrac S/W.

50. Handles all leasing /rental payment & legal issues.

51. Official Letters & agreements.

52. Checklists of moving in & out of the incubator.