About Incubators

Why are so many incubators sponsored by universities?

Many start-up companies are developed by undergraduate and graduate students as well as by professors who are doing research. Many of the discoveries that come from their research can be commercialized as products. Outside start-up companies can benefit from the expertise of working with professors and students in the areas needed by their companies.

What benefits do universities gain by sponsoring an incubator?

Universities often see incubators as research laboratories where they can test ideas to see if they are practical in the business or industrial world. Incubator companies often provide internships and jobs for students. In many cases, start-up companies give universities a small share of the equity in their companies in return for the assistance provided for them. If the companies become successful, the rewards to the university providing the incubator can be significant.

Do incubators provide sources of information to entrepreneurs helpful to starting and growing a business in addition to the actual services they offer?

Most incubators have professionals working with them that can help entrepreneurs locate both general information and information very specific to the type of business they are starting. Numerous web sites are available that provide a wealth of information useful to entrepreneurs. Web sites often provide links to other web sites. For example, go to the web site: www.EntreWorld.org. This one site provides a wide range of information and a host of links that lead the entrepreneur to a world of other information.

How do non-profit incubators pay for the services they provide?

Fees are charged for many of the services provided; however, the fees generally are priced at less than market value. Incubators often get grants from governmental agencies or corporations to provide services that will enhance economic development. Many universities feel that the money invested in the incubator will pay big dividends when the companies are successful. Non-profit incubators often have a number of partners who support the incubator.

About UBI

What is UBI's ultimate goal?

The ultimate goal of UBI is to foster economic development in the Oak Park region. A vibrant economy offers many benefits to a University such as Foster University. UBI also provides excellent learning opportunities for its faculty and students.
Why does UBI screen companies so carefully before allowing them to be admitted to UBI?

Incubators are judged by their success in graduating companies that grow and become profitable. Many small businesses fail. If a start-up company does not have a good product or service, a good financial plan, a way to market the product or service, and effective management, it is not likely to succeed. UBI wants to work with companies that with a little extra nurturing have good potential to be successful.

Does UBI limit the types of companies it accepts?

Yes, UBI limits companies to knowledge-based companies that wish to have a working relationship with the faculty and students of Foster University, incorporate technology in their business, and that are compatible with other entrepreneurial companies already in the incubator. The companies that are selected for the incubator depend primarily on research and development. Manufacturing operations or operations that cause noise or pollution would not be acceptable.

Is UBI liable for the success of incubator companies?

No, UBI offers support, professional services, and guidance to incubator companies but the companies are ultimately responsible for their own success. UBI simply works to enhance the success rate of companies in the incubator. Ensuring that each incubator company has a sound business plan contributes to the likelihood of that company being successful, but it is not a guarantee.