BACKGROUND

• Purpose
• Method
• Results

It has been widely documented that the American workplace is rapidly changing in response to global competition and the application of new technologies. These changes are placing an increasing demand for highly skilled workers who can adapt to and function in high-performance jobs. However, employers and higher education administrators have indicated that the majority of high school students who enter the workforce do not possess the necessary skills for effective and rewarding participation in the workplace (Committee for Economic Development, 1992; National Center on Education and the Economy, 1990). As a result, many unskilled individuals are quickly losing their earning power and joining the ranks of the unemployed. Indeed, the lack of adequate preparation for high-performance jobs results in significant transition problems for about half of the high school graduates annually (William T. Grant Foundation, 1988).

Although declining productivity is usually associated with deficient preparation of workers, today's highly competitive global economy is also requiring new management styles and entrepreneurial skills to recognize changes and improve business performance (Office of Technology Assessment, 1990; SCANS, 1991; Timmons, 1994). This is in addition to the knowledge and skills demanded from workers in the high-performance workplace scenario such as teamwork, critical thinking, problem solving, and communication skills (Bailey, 1991). It appears these demands may have a greater impact on small enterprises all across the nation. Reports on the state of small businesses have indicated that approximately 98% of all enterprises in the United States are small companies. About half of all new businesses fail within two years of operation (U.S. Small Business Administration, 1991). Reasons for such failure include lack of planning skills, inadequate controls, poor management skills, inability to market products or services, and lack of skills to locate professional help when necessary (NBIA, 1991).

Collectively, reasons for business failures point to poor entrepreneurial skills of business owners who may think that technical knowledge, business skills, or having a business plan alone is the key to success, and that entrepreneurship cannot be learned (Sudikoff, 1994; Timmons, 1994). However, in today's economy, technical and business skills are not enough to operate a business. Entrepreneurial skills are also required to anticipate changes, identify opportunities, and create a high-performance working environment according to the realities demanded by global competition. The debate continues as to whether entrepreneurship can be taught, but the benefits of exposing business owners to entrepreneurial environments and training (e.g., business incubators, college courses) have been demonstrated in different settings and through different approaches (Goodman, 1994; Smilor & Gill, 1986; Timmons, 1994).

Recognizing the need to invest in education and training systems in tune with current skills demanded in the workplace, recent education reforms seek to establish creative partnerships to improve the preparation of workers through a broader education and training system (Bailey, 1994; Stasz, 1995). Partnerships between industry and two-year colleges are nothing new. Connecting activities have been in place for a long time; however, an expanded role for community colleges beyond workers' training has been recently advocated in response to current needs and to prepare individuals for alternative career paths including business ownership (Kopececk, 1991). Further, the percentage of failures in the operation of new small businesses reinforces the need to develop educational efforts to foster entrepreneurship through postsecondary institutions since two-year colleges are closer to the business community. The long-standing alliance between businesses and two-year colleges provides an excellent medium to contribute to economic growth by addressing different ways to foster entrepreneurship, including business incubation (Carmichael, 1991).

Assuming a leadership role in community economic development requires proactive participation in strategic planning, and involvement in broad-based community partnerships. Because of the close ties with key community players, this appears to be a natural role for postsecondary institutions. However, active participation in community development has been largely underestimated due to political implications; short-term vision; inadequate leadership; and funding, management, and time considerations (Kopececk, 1991). When these obstacles are overcome, the benefits can provide a sustained framework for economic development. Indeed, some states have already demonstrated the benefits for the participation of community/technical colleges in providing technical assistance and technology transfer to small business. In 1991, for instance, 144 community colleges sponsored assistance centers to small businesses (Carmichael, 1991). However, with more than 1,300 community colleges in the U.S., significant room for improvement exists. This contribution can also be complemented through partnerships with local industry to provide internships, scholarships, specialized training, and programs focusing on entrepreneurial development (Weinberg & Burnier, 1991). To implement such efforts, it is necessary to understand the factors that influence the development of entrepreneurial skills with focus on the role of postsecondary institutions.

Most studies available to date focus on business performance and the experiences of incubator managers to generalize on entrepreneurs at large, and only limited entrepreneur-level information is available on key issues related to business incubation. Surveys of businesses in incubation are conducted periodically to describe the state of the industry in business incubation from an organizational perspective rather than from the in-house client perspective (e.g., National Business Incubation Annual Reports). Further, there is little information describing the efforts of postsecondary institutions in fostering economic development and entrepreneurship by supporting business incubation. This is, perhaps, due to the fact that only a small number of two-year colleges participate in these efforts (Carmichael, 1991; NBIA, 1993). Thus, few studies describe the population served by postsecondary vocational institutions, and the characteristics of partnership arrangements with business incubators. Based on these premises, it was important to conduct this study to gather data and describe the experiences of entrepreneurs in business incubation to better understand the efforts of postsecondary vocational institutions in fostering entrepreneurship in the community.

Purpose

The purpose of this survey was to examine the collective experiences of entrepreneurs, business incubator managers, and postsecondary institutions involved in educational and training strategies aimed at fostering entrepreneurship. The experience of entrepreneurs in business incubation--an environment where business owners are nurtured and provided with opportunities to develop entrepreneurial skills--was viewed as an appropriate medium to gather rich insights about entrepreneurship. The objectives were to

• develop a shared understanding of entrepreneurship development in business incubation.
• identify opportunities for two-year colleges to develop entrepreneurship as an alternative career path for individuals with diverse backgrounds.

Method

The business incubation concept is defined here as a strategy to foster community economic development. This concept can focus on facilities which provide favorable conditions to nurture the development and growth of new small firms, that is, commercial space at low cost, including clerical and administrative support, basic office equipment, and counseling services to assist the development and survival of new companies in business incubation. It can also focus on holistic environments involving, in some instances, whole communities where business owners work closely with local leaders to learn and develop entrepreneurial skills (NBIA, 1991; National Council for Urban Economic Development, 1985; Smilor & Gill, 1986). Through business incubation, community development agencies, universities, two-year colleges, and a combination of sponsors seek to promote entrepreneurial talent and jobs, revitalize local economies, and assist in the development of technology.

The survey was conducted in collaboration with the National Business Incubation Association (NBIA), and a sampling strategy was designed to draw participation from the NBIA membership. Two surveys--one for business incubator managers and another for incubator clients--were developed within the total design of the study. As a complementary strategy to offset possible low return rates from the target population consistently reported in related literature (e.g., NBIA, 1991; Smilor & Gill, 1986), case studies were conducted in nine sites representing urban, rural, and suburban communities, as well as different primary sponsorship, business incubation approach, and target clientele (for a review of case studies see Report 2 by Hernández-Gantes, Sorensen, & Nieri, 1996a).

Sampling

The first step involved the selection of business incubators. NBIA members were the sample frame considered for the survey. The overall membership of NBIA reported in 1993 was 499 incubators located in the United States, Canada, and Puerto Rico (NBIA, 1993). A list of member incubators representing the categories of interest was provided by NBIA staff. Of these, only 25 incubators were found to be associated primarily with two-year colleges. Thus, given our particular interest in this category, and the small number of business incubators identified, we decided to include all of them, along with a proportional sample of incubators sponsored by universities and other sources. Hence, the overall sample included 200 incubators, representing 40% of the total NBIA membership. We felt that the inclusion of all incubators supported by two-year colleges, and a proportional number of the two other types of incubators, would provide a more comprehensive representation of the NBIA membership.

Based on this approach, a stratified random-sampling process was conducted to include 75 university-sponsored incubators, and 100 other source-sponsored incubators (e.g., community development agencies, private organizations), in addition to the 25 incubators sponsored by two-year colleges. Incubator managers were requested to complete their surveys and to facilitate the survey of in-house incubator clients. The second step involved a selection procedure of incubator clients. According to the last report of the state of business incubation (NBIA, 1991), the average number of clients per incubator was 12, with the possibility that none be in incubation (e.g., the incubator may serve external clients only). Thus, based on feedback from NBIA executive staff and the review of the 1993 report on business incubation, we decided on a "convenient" sampling process of business incubator clients. Initially, we decided to target at least two clients per incubator for an overall target sample of 400 clients. However, we anticipated that, in some instances, none would be in incubation, and that others would not respond for a variety of reasons. Hence, to improve an expected low response rate (based on previous NBIA experience), it was decided to oversample and send survey materials to at least five clients per incubator for an overall adjusted sample of 1,000 clients.

Survey Instruments

Data Collection and Follow-Up Activities

Managers contacted over the phone indicated they were oversurveyed and had many other demands on their time. All in all, questionnaires were returned from 40% of incubator managers, and by 45% of the initial target sample of 400 incubator clients. This is considering questionnaires which could not be delivered because some incubators were no longer in operation or had no in-house clients. The average number of clients responding per incubator was 2.16.

Analysis

Returned surveys were coded, and data was entered in databases created to store information on managers and clients. The analysis was conducted using basic descriptive statistics (e.g., frequencies, averages) to represent the response patterns of managers and clients for each question or sets of questions. Univariate and multivariate tables were created to analyze the information and describe the survey sample either by individual or multiple questions, or for subgroup descriptions.

Results

The results are presented in two sections describing findings from the surveys of business incubator clients and managers. Each section includes a subsection describing the corresponding sample of business incubator clients and managers, and additional subsections to describe the perspectives of both incubator clients and managers on various aspects of business incubation and entrepreneurship. Table figures are based on responses from 28, 71, and 61 in-house clients from incubators sponsored by two-year colleges, universities, and other community organizations, respectively. The overall number of respondents for the incubator client cohort was 160. Similarly, table figures derived from the survey of incubator managers represent responses from 12, 36, and 26 managers associated with two-year college, universities, and other incubators, in that order.

Survey of Business Incubator Clients

The educational level of respondents was primarily described by a four-year college education (45%), followed by master's degrees (25%), and Ph.D.s (11.9%). Only a minority of entrepreneurs (8.1%) indicated their highest educational level was represented by a two-year college degree. Across business incubators, university-sponsored business incubators seemed to attract entrepreneurs who are more educated in comparison to the other two types of incubators. That is, 90.2% of the entrepreneurs in university-sponsored incubators reported a four-year college education or higher, while only 64.4% and 80.3% of entrepreneur incubators sponsored by two-year colleges and other organizations, respectively, reported the same educational background.

Perspectives on Incubator Services

In regard to incubator features, about a third of the respondents across all three types of business incubators indicated that low rental fees is what they like the most (30.1%). This was followed by low fees for services (15.9%) and building maintenance (14.9%). No major variations from this pattern were apparent across types of incubators (see Table 1).

Table 1
Entrepreneurs' Perspectives on Incubator Services by Type of Incubator

About Incubator Services	Two-Year College	University	Other Sources	Overall
Services the incubator is providing most effectively	_____________________ % _____________________
Financing assistance	7.50	6.30	8.20	7.20
Clerical/Office services	17.50	16.70	16.40	16.70
Management assistance	10.00	4.20	5.50	5.70
Technical assistance	5.00	3.10	0.00	2.40
Education/Training	7.50	8.30	6.80	7.70
Business space and infrastructure	47.50	53.10	56.20	53.10
Entrepreneurial development	5.00	8.30	6.80	7.20
Feature of incubator clients like the most
Low rental rate	29.20	31.70	28.80	30.10
Low fees for services	15.80	17.90	11.90	15.90
Building maintenance	15.80	13.80	15.30	14.90
Financing assistance	6.70	1.60	5.10	4.30
Support to reduce "business stress"	10.80	11.40	10.20	10.90
Networking opportunities	11.70	8.90	8.50	9.90
Promotion of entrepreneurship	2.50	6.50	10.20	5.60

Perspectives on Education and Training

About 40% of the respondents reported that most services on education and training are provided by a combination of sources (e.g., consultants, volunteers, incubator staff), while around 20% said incubator staff is the main provider of these services. Educational institutions were consistently mentioned across types of incubators as less involved in the provision of education and training services in business incubation.

Overall, individual on-site training consultation (30.1%) was the education and training services format most frequently used, followed by seminars offered periodically (27.5%). Other popular choices were workshops developed upon request from clients (17.2%) and series of education and training modules offered on a regular basis (16.2%). Together, these options are traditional formats for delivery of education and training services and indicate the predominant use of individual on-site consultation, and a slight preference for seminars over other formats of delivery (Table 2).

Table 2
Entrepreneurs' Perspectives on Education and Training Services by Type of Incubator

About Incubator Services	Two-Year College	University	Other Sources	Overall
Delivery of education and training services	_____________________ % _____________________
Have no need for these services	25.00	33.30	28.30	30.00
Provided by incubator staff	25.00	17.50	20.80	20.10
Most services are provided by a combination of sources	35.70	42.90	37.70	39.60
Most services are provided by educational institutions	14.30	6.30	13.20	10.40
Format of education adn training services
Individual on-site training/consultation	31.40	28.60	33.00	30.10
Workshops developed upon request from clients	19.60	17.10	16.00	17.20
Series of education/training modules offered periodically	21.60	17.90	11.00	16.20
Videos for self-paced training and instruction	5.90	10.70	7.00	8.60
Seminars offered periodically	21.60	25.70	33.00	27.50

Entrepreneurial Experiences

Responses by type of incubator showed that the major source of technical expertise--previous work in the corporate world--is distributed evenly across business incubators. However, the other most important source--undergraduate/graduate work--remained at the overall level in university-sponsored incubators but dropped by about ten percentage points at the other two types of incubators. Further, two-year college coursework as a source of technical expertise drops by about eight percentage points in a university-sponsored incubator in relation to the other two types of business incubators. From these responses, it appears that university-sponsored incubators are primarily tending to well-educated entrepreneurs who had been previously working for private corporations, while slightly more diverse groups operate in the other two types of incubators.

Table 3
Sources of Experience for Entrepreneurs Operating in Different type of Incubators

Sources of Experience	Two-Year College	University	Other Sources	Overall
Experience as a student or supervisor in. . .	_____________________ % _____________________
Tech Prep	3.20	2.50	4.10	3.20
Mental programs	16.10	12.30	15.10	14.10
School laboratory work	16.10	24.70	23.30	23.00
Apprenticeship programs	6.50	7.40	8.20	7.60
Interships in the workplace	22.60	24.70	23.30	23.00
Part-time jobs in related businesses	29.00	17.30	12.30	17.30
Other	6.50	11.10	12.30	11.00
Business skills where learned from . . .
A close relative who owned a business	6.50	6.00	7.00	6.50
Small Business Administration	2.20	9.50	10.00	8.40
Outreach efforts of incubator	6.50	2.60	3.00	3.40
Working for a company	37.00	40.50	41.00	40.00
Working for a family business	8.70	0.90	8.00	4.90
Vocational high school classes	0.00	0.90	1.00	0.80
Courses at community/technical college	4.30	2.60	3.00	3.00
Undergraduate/graduate coursework	17.40	22.40	14.00	18.30
Other	13.60	15.10	13.60	14.50
Technical skills were learned from . . .
A close relative who owned a business	2.30	2.50	2.30	2.40
Working for a company	38.60	38.70	38.60	38.70
Working for a family business	6.80	0.80	6.80	3.40
Vocational high school classes	0.00	0.80	0.00	0.50
Courses at community/technical college	11.40	3.40	11.40	6.80
Undergraduate/graduate coursework	27.30	38.70	27.30	33.80
Other	13.60	15.10	13.60	14.50

Entrepreneurial Perspectives

Responses were almost evenly distributed at about 15% for business, technical, entrepreneurial, interpersonal, and motivational skills. This overall pattern changed slightly for entrepreneurs in incubators primarily supported by two-year technical colleges who reported a more balanced profile of importance for skills needed to operate a business in comparison to the other two types of incubators.

Table 4
Entrepreneurs' Perspectives on Skills and Training Needed To Operate a Business by Type of Incubator

Perpectives on Skills and Training	Two-Year College	University	Other Sources	Overall
Most important skills needed to operate a business. . .	_____________________ % _____________________
Business skills	14.60	12.20	16.80	14.40
Technical skills	14.60	14.00	15.80	14.80
Entrepreneurial	11.20	15.80	13.00	14.00
Interpersonal and communication skills	13.50	13.10	14.10	13.60
Thinking skills	10.10	10.90	9.80	10.30
Basic literacy skills	12.40	9.00	8.70	9.50
Technological skills	9.00	9.00	5.40	7.70
Motivational skills	14.60	15.80	16.30	15.80
Areas where further education and training is needed . . .
Business skills	40.90	19.00	36.40	28.70
Technical skills	9.10	15.20	9.10	12.00
Entrepreneurial	13.60	21.50	15.20	18.00
Interpersonal and communication skills	4.50	7.60	7.60	7.20
Thinking skills	0.00	3.80	6.10	4.20
Basic literacy skills	0.00	3.80	4.50	3.60
Technological skills	27.30	17.70	13.60	17.40
Motivational skills	4.50	11.40	7.60	9.00

A somewhat similar overall trend was found regarding further education and training needed to run a business successfully. In this regard, business skills were mentioned by a greater proportion of respondents (28.7%), followed by entrepreneurial (18%), technological (17.4%), and technical skills (12%). Across all business incubators, the need for education and training drops about 20 percentage points in university-sponsored incubators in comparison to the other two types of incubators. Further, respondents from incubators primarily sponsored by two-year colleges and "other" sponsors appear to be more concerned with business skills (40.9 and 36.4%, respectively), while those in university-sponsored incubators show a more balanced profile of responses indicating interest in education and training opportunities in business (19%), entrepreneurial (21.5%), and technological skills (17.7%).

Another aspect of the entrepreneurial perspectives involved an evaluation of experiences on business development including start up opportunities and limitations, knowledge of products and/or services, clientele, and information about marketing strategies (see Table 5). At the early stage of business development when entrepreneurs joined the business incubator, they all agreed--regardless of business incubator type--that they were well-prepared to start up their business operations and did not need any assistance in developing their business plan. About knowledge of their business product and/or services, respondents reported that when they started their business, they knew how to produce or deliver business goods or services and did not require technical assistance for that purpose. Across business incubators, this pattern remained the same.

Similarly, about knowledge of target clientele, clients reported that they knew the scope and needs of their potential clientele and did not require assistance for that purpose. In regard to marketing, respondents indicated they had a marketing plan to sell products or services, knew how to implement their plan, but needed some assistance in developing their plan. All respondents agreed that having a marketing plan was a priority for them at the early stage of business development. This pattern was relatively consistent across business incubators (see Table 5).

After the initial start-up stage, the concerns switch to management, personnel, finances, and growth plans to keep the business running smoothly. About overall management of their businesses, clients across all business incubators agreed they have their business organized in a functional manner, keep good records of business operations, handle management on their own effectively, and do not require assistance in this area (Table 6). Respondents across all business incubators agreed that they follow sound personnel management practices. The only discrepancy was found in firing procedures where entrepreneurs in university-sponsored incubators reported not following regular procedures. Given the nature of the response format, an explanation for this statement is not possible. In terms of business finances, entrepreneurs in two-year college-sponsored business incubators reported that they have not received assistance on business finances and do not need this kind of assistance. In contrast, clients in incubators sponsored by universities indicated they have received and need assistance on business finances, while clients in incubators sponsored by other organizations noted they had received help but did not need assistance (see Table 6).

Table 5
Entrepreneurs' Perspectives on Business Development by Type of Business Incubator*

Perspectives on Business Development	Two-Year College	University	Other Sources	Overall
When entrepreneurs enrolled in the incubator. . .	_____________________ % _____________________
Had a well-defined concept of their business product/service	4	3	3	3 (.73)
Did not have a written plan	2	2	2	2 (1.2)
Needed substantial assistance developing a business plan	2	2	2	2 (.93)
Were open to modification of original business idea	3	3	3	3 (.78)
About limitations to start-up, entrepreneurs . . .
Did not know how to go about starting up	2	1	2	2 (.82)
Did not have adequate financing	3	1	3	2 (.96)
Did not know where to find assistance	2	1	2	2 (.78)
About business product/service, when entrepreneurs started their business . . .
Knew how to produce/deliver business goods or services	4	3	4	4 (.68)
Had a good business idea but relied on someone else to produce or deliver goods or services	2	2	2	2 (.84)
Had identified steps and operations required to produce/ deliver goods or services	3	3	3	3 (.68)
Did not need technical assistance to produce or deliver goods/services	3	3	3	3 (.93)
About knowledge of target clientele, entrepreneurs . . .
Knew the scope of their target clientele	3	3	3	3 (.78)
Knew the needs of their target clientele	3	3	3	3 (.72)
Required assistance to identify clientele	2	2	2	2 (.89)
Did not know where to get information about target clientele	2	2	2	2 (.81)
About marketing of product/services, entrepreneurs . . .
Had a marketing plan to sell products/services	3	3	3	3 (.87)
Knew how to implement marketing plan	3	3	3	3 (.85)
Needed assistance to develop a marketing plan	3	3	2	3 (.88)
Did not consider a marketing plan a priority	2	2	2	2 (.88)

*1 = Totally Disagree, 2 = Disagree, 3 = Agree, 4 = Totally Agree

Numbers in parentheses indicate the standard deviation.

Overall, respondents also indicated they were prepared for business expansion and growth, although clients in "university-sponsored" and "other" incubators observed that they did not need help in developing those plans. On the other hand, clients in incubators sponsored by two-year colleges feel they did need assistance in this area (Table 6).

Table 6
Entrepreneurs' Perspectives on Business Operations by Type of Business Incubator*

Perspectives on Business Operations	Two-Year College	University	Other Sources	Overall
About management operations, entrepreneurs. . .	______________________ % ______________________
Have business well-organized	4	3	3	3 (.55)
Do not keep good records of operations	2	2	2	2 (.79)
Handle business management effectively	3	3	3	3 (.60)
Do not require assistance on business management	3	3	3	3 (.76)
About personnel management, entrepreneurs. . .
Use a screening process for hiring	3	3	3	3 (.70)
Resolve conflicts with employees	3	3	3	3 (.51)
Follow legal firing procedures	4	1	3	3 (.64)
Evaluate job performance and provide feedback to employees	4	3	3	3 (.54)
Are able to motivate employees	4	3	3	3 (.56)
About business finances, entrepreneurs. . .
Are always able to pay bills	3	3	3	3 (.84)
Are able to keep competitive costs	3	3	3	3 (.54)
Offer competitive prices	4	4	4	4 (.53)
Handle money operations effectively	3	3	3	3 (.62)
Have received assistance on business finances	2	3	3	3 (.92)
Need assistance handling business finances	2	3	2	2 (.92)
About plans for expansion and growth, entrepreneurs. . .
Have written plans	3	3	3	3 (.87)
Have taken steps to implement plans	3	3	3	3 (.70)
Need assistance to develop plans	3	2	2	2 (.74)

*1 = Totally Disagree, 2 = Disagree, 3 = Agree, 4 = Totally Agree

Numbers in parentheses indicate the standard deviation.

Personal entrepreneurial characteristics such as communication, interpersonal, computer, problem-solving skills, and perceived need for further education and training are reported on Table 7. About communication and interpersonal skills, respondents agreed across all incubators that they can communicate effectively with people, did not have problems negotiating and resolving conflicts, did not require assistance to improve skills to communicate in writing, and did not have problems interacting effectively with customers and employees.

Table 7
Entrepreneurs' Perspectives on Personal Skills by Type of Business Incubator*

Perspectives on Personal Skills	Two-Year College	University	Other Sources	Overall
About communication and interpersonal skills, entrepreneurs. . .	_____________________ % _____________________
Communicate effectively with people	3	3	3	3 (.51)
Have problems resolving conflicts	2	2	2	2 (.66)
Need to improve skills to communicate in writing	3	2	2	2 (.86)
Have problems interacting effectively with customers and employees	2	2	2	2 (.55)
About computer skills, entrepreneurs. . .
Are familiar with basic use of computers	3	3	3	3 (.77)
Work comfortably with cutting-edge computer technology	3	2	3	3 (1.0)
Need computer education/training	3	2	2	2 (1.0)
About problem solving, entrepreneurs. . .
Recognize when something is not working right	4	3	3	3 (.55)
Are able to identify possible causes of problems on their own	3	3	3	3 (.49)
Whenever there is a problem, can devise a plan of action to resolve it	3	3	3	3 (.66)
Evaluate and monitor progress of solutions to problems	3	3	3	3 (.58)
About education and training opportunities, entrepreneurs. . .
Feel they need further education/training opportunities to develop business, technical, and entrepreneurial skills	3	3	3	3 (.79)
Are willing to pay for education/training opportunities	3	3	3	3 (.76)
Are aware of educational opportunities in their community	3	3	3	3 (.71)

*1 = Totally Disagree, 2 = Disagree, 3 = Agree, 4 = Totally Agree

Numbers in parentheses indicate the standard deviation.

Further, survey respondents indicated they are familiar with basic use of computers but disagreed on having knowledge of cutting-edge technology and on need for computer education and training. Entrepreneurs in business incubators sponsored by universities reported they were not comfortable working with cutting-edge computer technology, while respondents from the other two types of business incubators did. Also, in-house clients in incubators sponsored by two-year colleges felt they need additional computer training, while those in incubators sponsored by universities and other sponsors believed they did not need training in this area. About problem solving, respondents across all types of business incubators felt confident about their abilities to solve problems. Finally, entrepreneurs believed that--in general--they need further education and training opportunities to develop business, technical, and entrepreneurial skills. Concurrently, they agreed on willingness to pay for these opportunities and are aware of educational opportunities available in their community (Table 7).

Survey of Business Incubator Managers

The kind of contribution provided by primary sponsors was characterized by making available business and technical expertise to entrepreneurs in incubation (25.1%), building infrastructure (21.2%); consulting staff to deliver education, training, and business services (18.5%), and financial support (17.2%). The rest of the contribution was accounted for by administrative and management staff and other forms of support.

Overall, the ethnic profile of incubator managers was characterized as mostly Caucasian across all types of incubators (91%), a small proportion of African-Americans (8.1%), a small representation of Native Americans (.9%), and no participation of individuals with Asian or Hispanic backgrounds. Across business incubators, Caucasian managers accounted for 100% of representation at two-year college-sponsored incubators, while a profile including 8.3% African-American, 2.8% Asian, and 88.9% Caucasian was found in university-sponsored incubators. Incubators sponsored by other organizations in the community were managed by 16% African-American managers, while the rest were of Caucasian descent (84%). The average age of business incubator managers was 46 years old and this was almost identical across incubator types. Gender representation was characterized by about 70% male and 30% female. Only in incubators sponsored by universities was the proportion of female respondents ten percentage points higher than the overall trend. Further, the general educational profile of business incubator managers was heavily represented by bachelor's (46.9%) and master's degree levels (33.4%). Two-year college-sponsored incubators had a more balanced profile of management but showed a greater proportion of managers with bachelor's degrees (38.5%).

In general, business incubator managers have been in their current position an average of four years with little variation across incubator types (range = 3.6 to 4.9 years). In regard to previous work experience, the overall background is diverse with only business management and academic staff positions being reported by slightly more than 10% of the respondents. Further, in two-year college-sponsored incubators, managers frequently reported more previous experience in property management (18.7%), business management (14.13%), sales/marketing (14.13%), and financial services (11.96%). In university-sponsored incubators, previous experience was characterized mostly by positions in business management (11.9%) and academic settings (11.9%). Similarly, the positions most frequently mentioned by managers in incubators sponsored by other organizations were business management (11.5%), financial services (10.6%), and previous business start-up ventures (10.6%) (see Table 8).

Table 8
Previous Work Experience of Incubator Managers by Type of Incubator

Previous Experience	Two-Year College	University	Other Sources	Overall
	_____________________ % _____________________
Business owner	7.61	7.34	9.73	7.80
Business management	14.13	11.93	11.50	11.30
Property management	18.70	7.34	7.96	7.80
Economic development	6.52	9.17	6.19	7.00
Nonprofit organizations	7.61	9.17	7.96	7.80
Incubator management	0.00	2.75	2.66	7.80
Business consulting	6.52	7.34	5.31	0.90
Financial services	11.96	9.17	4.43	6.10
Sales/Marketing	14.13	8.26	10.62	7.00
Government	6.52	8.26	5.31	9.60
Business start-up experience	6.52	7.34	10.62	8.70
Lawyer	0.00	0.00	7.96	7.80
Academic experience	9.78	11.93	9.73	10.40

Business Incubator Services

Three areas of business incubation appeared to be emphasized the most across all business incubators. These are business services (26.4%), opportunities to experience an entrepreneurial environment (24.7%), and low rent for commercial space (22.5%). Concurrently, respondent managers believed the services they are providing most effectively are business space and infrastructure (22.8%) and clerical and office support (17.8%). This pattern was apparent across all business incubators. In general, there only appeared to be slightly more emphasis on education and training services by managers in two-year college-sponsored incubators across the various aspects of incubation (Table 9).

As a whole and across types of business incubators, managers agreed their services were clearly defined and presented to clients in promotional materials. In addition, managers totally agreed about making clients aware of frequency, duration, and cost of services; offering service options according to individual needs; and providing educational and training opportunities for individuals thinking of starting up a business.

Table 9
Managers' Perspectives on Emphasis and Services of Business Incubators

Managers' Perspectives	Two-Year College	University	Other Sources	Overall
If incubator managers had the chance, they would focus their work in . . .
Direct consulting with clients	29.03	24.32	22.37	24.30
Creating/maintaining external resources and networks	12.90	23.42	23.68	22.00
Fundraising	6.45	7.21	6.58	6.90
Building maintenance	0.00	6.31	3.95	4.60
Marketing the incubator	16.13	15.32	21.05	17.40
Incubator management	9.68	10.82	11.84	11.00
Establishing education/training programs	25.81	10.82	9.21	12.40
Non-incubator job responsibilities	0.00	1.80	1.32	1.40
Areas most emphasized when promoting the incubator to clients . . .
Low rent, good facilities	22.86	21.05	24.36	22.50
Financial opportunities	2.86	7.89	11.54	8.40
Business services	28.57	28.07	23.08	26.40
Education/training services	17.14	13.16	10.26	12.80
Entrepreneurial environment	28.57	24.56	23.08	24.70
Other	0.00	5.26	7.69	5.30
Services the incubator is providing most effectively . . .
Financing assistance	6.06	4.84	13.10	7.90
Clerical/Office services	21.22	19.35	14.29	17.80
Management assistance	15.15	12.90	13.10	13.30
Technical assistance	3.03	4.84	7.14	5.40
Education/Training	18.18	13.71	10.71	13.30
Business space and infrastructure	21.22	22.58	23.81	22.80
Entrepreneurial development	12.12	15.33	15.48	14.90
Other	3.03	6.45	2.38	4.60

Managers' Perspectives on Education and Training

Further, across business incubators, two-year college-sponsored incubators did not use educational services from four-year colleges. Managers reported using services from business schools (28.57%) and two-year college staff (14.29%), and relied heavily on a variety of other unidentified sources (57.14%). Surveyed managers also indicated educational and training services were best provided by educational institutions (30.6%) and incubator staff (26.4%). Across business incubators, managers conformed to this pattern of perspectives, clearly indicating the important role of educational institutions in business incubation (Table 10).

Finally, the perspectives of surveyed managers on the preparation entrepreneurs need to operate a business indicated two areas of attention. One of these two areas--business skills--was more heavily considered, as it was mentioned by about 60% of managers. The second area was entrepreneurial skills (e.g., ability to organize and use resources and information available for business purposes) with 20.8%. This pattern was consistent across incubator types (Table 11).

According to respondent managers--across all business incubators--the most frequent reason for business failures was the lack of business skills (35.49%). The second most mentioned reason was the lack of "entrepreneurial skills" (18.73%). That is, the capacity to recognize and take advantage of business opportunities based on available resources and information. This was followed by communication and interpersonal skills needed to deal effectively with customers, providers, creditors, and personnel (15.14%).

Table 10
Education and Training Services Offered by the Incubator

Perspective on Education and Training Services	Two-Year College	University	Other Sources	Overall
About format of education and training services. . .	_____________________ % _____________________ .
Individual on-site training-consultation	33.33	24.14	40.00	31.90
Workshops developed upon request	26.67	20.69	4.00	15.90
Series of education/training modules	13.33	10.34	20.00	14.50
Self-paced instructional materials	0.00	6.90	0.00	2.90
Seminars offered periodically	26.62	37.93	36.00	34.80
About the provider of education and training services. . .
Business in the community	15.38	7.41	21.43	14.70
Incubator staff	23.08	18.52	28.57	23.50
Client firms in the incubator	7.69	7.41	7.14	7.40
Educational institutions	30.77	40.24	32.14	35.30
Combination of providers	23.08	25.93	10.72	19.10
About the contribution of educational institutions. . .
Vocational high school	0.00	0.00	0.00	4.20
Vocational, trade, technical, or business	28.57	8.33	25.00	16.70
school
Public vocational-technical college	14.29	0.00	0.00	4.20
Four-year college	0.00	75.00	25.00	41.70
Other	57.14	16.67	50.00	33.30
According to managers, education/training services would be best provides by. . .
Private consulting firms	0.00	14.86	18.52	14.60
Nonprofit volunteer organizations	0.00	10.81	11.11	9.70
Educational institutions	37.50	33.78	24.07	30.60
Tenant firms in education consulting	12.50	6.76	12.96	9.70
Incubator staff	25.00	27.03	25.93	26.40
Other	25.00	6.76	7.41	9.00

Perspectives on Incubator Clients

Table 11
Managers' Perspectives on the Preparation Entrepreneurs Need to Operate a Business by Type of Incubator

Perspectives on Preparation Needed by Entrepreneurs	Two-Year College	University	Other Sources	Overall
Most important skills needed to operate a business. . .
Business skills	58.82	62.50	56.10	59.40
Technical skills	11.76	2.07	9.76	6.60
Entrepreneurial	11.76	25.00	19.51	20.80
Interpersonal and communication	11.76	6.25	9.76	8.50
Basic literacy skills	5.88	2.08	4.88	3.80
Other	0.00	2.08	0.00	0.90
Most frequent reasons for busniess failures. . .
Lack of basic skills	8.33	7.79	6.78	7.63
Lack of business skills	37.50	35.06	33.90	35.49
Lack of communication and interpersonal	16.67	16.88	11.86	15.14
skills
Lack of technical skills	12.50	2.60	8.47	7.86
Lack of entrepreneurial skills	12.50	23.38	20.31	18.73
Other	12.50	14.29	18.64	15.04

In general, managers indicated that entrepreneurs had a good business idea but lack an understanding of all the implications for business start-up procedures. In terms of entrepreneurs' knowledge of their products/services, managers agreed that they knew how to produce/deliver their goods or services at the beginning of business operation. That is, entrepreneurs usually have a technical plan of operation laid out and do not require technical assistance for production or delivery of their goods/services. With the exception of two-year college-sponsored incubator managers, all others agreed that entrepreneurs knew the scope and needs of their clientele at earlier stages of business development but required assistance to identify their clientele. In terms of marketing of products and services at the beginning of business operation, business incubator managers agreed entrepreneurs did not have a clear marketing strategy. Managers also agreed entrepreneurs did not give a high priority to the marketing plan and, consequently, needed assistance to develop it once they realized the importance of having one (Table 12).

Once entrepreneurs pass the initial stages of business development, they confront another set of opportunities and limitations including business organization, personnel management, finances, and developing plans for expansion and growth. The perspectives of managers on these business aspects experienced by entrepreneurs are presented on Table 13. Across all types of incubators, managers thought entrepreneurs were well-organized and implemented sound management practices but required assistance on these aspects of business operations (Table 13).

Table 12
Managers' Perspectives on Business Development by Type of Business Incubator*

Aspect	Two-Year College	University	Other Sources	Overall
When the entrepreneurs enrolled in the incubator. . .
Had a well-defined business idea	3	3	4	3 (1.0)
Did not have a written plan	3	4	4	4 (.96)
Needed help in developing business plan	4	4	4	4 (.98)
Were open to modification of original idea	4	4	3	4 (.92)
About limitations to start up their business, entrepreneurs. . .
Did not know how to go about the start up	4	3	3	3 (1.1)
Did not have adequate financing	4	4	4	4 (1.0)
Did not know what they were getting into	4	3	4	4 (1.0)
Did not know where to find assistance	4	3	3	3 (.98)
Could not afford market rates for space	4	4	4	4 (1.0)
About business products/services, when entrepreneurs started their business. . .
Knew how to produce/deliver business goods or services	3	3	4	3 (.98)
Had identified steps and operations required to produce/deliver goods or services	3	3	4	3 (.97)
Did not need technical assistance to produce or deliver goods/services	2	2	2	2 (.93)
About knowledge of target clientele, entrepreneurs. . .
Knew the scope of their target clientele	2	3	3	3 (.99)
Knew the needs of their target clientele	3	3	3	3 (.95)
Required assistance to identify clientele	4	4	4	4 (.79)
About marketing of products/services, entrepreneurs. . .
Had a marketing plan to sell products/services	2	2	2	2 (1.0)
Knew how to implement marketing plan	2	2	2	2 (.88)
Needed help to develop a marketing plan	4	4	4	4 (.69)
Did not consider a marketing plan a priority	3	3	3	3 (1.2)

*1 = Totally Disagree, 2 = Disagree, 3 = Agree, 4 = Totally Agree

Numbers in parentheses indicate the standard deviation.

Likewise, managers from all types of incubators agreed that entrepreneurs were able to manage personnel efficiently. Managers also agreed that entrepreneurs managed to pay rent and business bills on time, kept competitive costs and prices, but needed assistance handling business finances. Further, respondent managers agreed that entrepreneurs in business incubation usually did not have written plans for expansion and growth, nor had they taken steps to implement their plans, and required help in developing their plans (see Table 13).

Table 13
Managers' Perspectives on Business Operations by Type of Business Incubator*

Aspect	Two-Year College	University	Other Sources	Overall
About the management of their business, entrepreneurs. . .
Have a well-organized business	3	3	3	3 (.99)
Keep good records of operations	3	3	3	3 (.98)
Manage their business effectively	3	3	3	3 (.88)
Do not require help on management	2	2	2	2 (.77)
Are able to motivate employees	3	3	3	3 (.84)
About personnel management, entrepreneurs. . .
Use a screening process for hiring	3	3	3	3 (.90)
Resolve conflicts with employees	3	3	3	3 (.85)
Follow legal firing procedures	3	3	3	3 (.79)
Hire only family members and relatives	2	2	2	2 (.77)
Evaluate job performance	3	3	3	3 (.74)
About business finances, entrepreneurs. . .
Are always able to pay rent on time	4	4	4	4(.95)
Are able to keep competitive costs	3	3	3	3 (.89)
Offer competitive prices	4	4	4	4 (.81)
Need assistance on business finances	4	3	3	3 (.99)
About plans for expansion and growth, entrepreneurs. . .
Have written plans	2	2	2	2 (.97)
Have taken steps to implement plans	3	3	3	3 (1.1)
Do not need assistance to develop plans	2	2	2	2 (.79)

*1 = Totally Disagree, 2 = Disagree, 3 = Agree, 4 = Totally Agree

Numbers in parentheses indicate the standard deviation.

Finally, all managers--with the exception of those from university-sponsored incubators--believe that male minority-owned businesses were more likely to fail than the average firm in business incubation. Further, managers from two-year and minority-sponsored incubators disagreed in that female-owned firms are more likely to fail than the average company in business incubation. At the same time, all respondent managers agreed that their management staff are well-prepared to service minority/female-owned firms.