Description
With this file about small business incubator certification program.
Small Business
Incubator Certification Program
Oklahoma
2014 Annual Report
Business incubation is a business support process that
accelerates the successful development of startup and fedgling
companies by providing entrepreneurs with an array of
targeted resources and services. Tese services are usually
developed or orchestrated by incubator management and
ofered both in the business incubator and through a network
of providers. Critical to the operation of an incubator is the
provision of management guidance, technical assistance and
consulting tailored to young, growing companies. Incubators
also provide clients with the appropriate rental space and
fexible leases (generally at a cost lower than market rates),
shared basic business services and equipment, technology
support and administrative services, and assistance in
obtaining the fnancing necessary for company growth.
Incubators vary in organizational structure, the types of
clients they serve, and the way they deliver their services.
Incubators are highly adaptable and can have difering
goals, including diversifying rural economies, providing
employment for and increasing wealth of depressed inner
cities, and transferring technology from universities and
major corporations. Incubator clients ofen are at the
forefront of developing new and innovative technologies,
creating products and services that improve the quality of life
in communities around the world.
Te earliest incubation programs focused on a variety of
technology companies or on a combination of light industrial,
technology and service frms. Today, these programs are
referred to as mixed-use incubators. In more recent years,
incubators have emerged that target such industries as
food processing, medical technologies, space and ceramics
technologies, arts and crafs, and sofware development.
Incubator sponsors also have targeted programs to support
microenterprise creation, the needs of women and minorities,
environmental endeavors and telecommunications.
A business incubator’s main goal is to produce successful frms
that will leave the program fnancially viable and freestanding,
usually in two to three years. Tese incubator graduates
have the potential to create jobs, revitalize neighborhoods,
commercialize new technologies and strengthen local and
national economies. Typically, 30 percent of incubator
clients graduate each year. National Business Incubation
Association members report that 84 percent of incubator
graduates stay in their communities and continue to
provide a return to their investors.
Business incubation is a proven model for catalyzing the
process of starting and growing companies. It provides
entrepreneurs with the expertise, networks and tools
they need to make their ventures successful. Incubation
programs diversify economies, commercialize
technologies, create jobs and build wealth. As of October
2012, there were more than 1,250 incubators in the
United States, up from only 12 in 1980. NBIA estimates
there are about 7,000 business incubators worldwide.
In 1988, the Oklahoma Legislature passed the
Oklahoma Small Business Incubators Incentives Act,
which enables the tenants of a certifed incubator
facility to be exempt from state tax liability on income
earned as a result of occupancy for up to fve years.
In 2001, the Legislature amended the act to extend
the tenant’s tax exemption from fve to 10 years. Te
exemption remains in efect afer the tenant is no
longer an incubator occupant. In order to qualify
for the tax exemption from the sixth through the
tenth years, the tenant must make at least 75 percent
of its gross sales to out-of-state buyers, to buyers
located within the state if the product or service is
resold to an out-of-state customer, or to the federal
government. In addition, the act enables the sponsor
of a certifed incubator facility to be exempt from
Oklahoma income taxes for a period of 10 years.
Since the act’s inception, the state of Oklahoma has
benefted from increased revenues and increases in the
number of startup and expanding small businesses.
Tese Oklahoma businesses have created jobs and
enhanced economic activity in their communities.
2
Small Business
Incubator Certification Program
Introduction
Oklahoma Business Incubators
Oklahoma Incubator
Program Growth
Te role of the Department of Commerce in the incubator
process is to certify the incubators pursuant to O.S. Title
74 Section 5071-79 and convene critical partners to assure
standards of excellence. It is the responsibility of incubator
owners to hire managers to oversee and market their
incubators and provide business services to their tenants.
As 2014 began, Oklahoma had 40 certifed incubators.
Tree incubators, located in Ada, Pawhuska and Tulsa,
were approved for certifcation during the year, and
seven others, located in Allen, Ardmore, Stillwater, three
in Oklahoma City and one in Tulsa, closed for various
reasons. Of those, Rural Enterprises chose not to continue
their management of the Allen Community Development
Authority Business Incubator in Allen; the Ardmore
Technology Transfer Center reached its 10 year expiration
and has moved locations – new application pending;
the Morgan Accelerator in the Tech Park in Stillwater
transitioned from Meridian Technology Center to OSU
managed, therefore a new certifcation would need to
be in place; PHF Foundation Business Incubator and
Synergy Enterprise Development in Oklahoma City and
Greenwood Chamber Business Incubator in Tulsa reached
their 10 year expiration. Metro Technology Center
Business Development Center South in Oklahoma City
chose not to continue with their incubator.
As 2014 comes to a close, 36 certifed small business
incubators are operating in Oklahoma (see Appendix),
with tenants ranging from small service companies to
high-tech research and development operations and
manufacturing entities.
In 2014, Oklahoma incubator managers were asked to
complete a questionnaire to document their activities for
the current reporting period. Based on the information
from those who responded, 137 small businesses are
currently leasing space in Oklahoma’s small business
incubators, providing 979 full-time jobs. Te charts
at right show the growth in the incubator program
throughout the past 10 years.
Troughout the Oklahoma Small Business Incubator
Certifcation Program’s existence, a total of 738 small
businesses have located in an incubator. Of those, 369
have graduated from the program or relocated to a
larger facility, and 257 have remained in the state. Te
businesses that remain in the state report they currently
employ 1,805 people. Commerce believes the incubator
program will continue to make signifcant contributions
to Oklahoma’s economy.
3
Oklahoma Department of
Commerce and Incubators
2006 2008 2010 2012 2014
2006 2008 2010 2012 2014
200
150
100
50
0
1200
1000
800
600
400
200
0
50
40
30
20
10
0
2006 2008 2010 2012 2014
Characteristics of Model Business
Incubation Programs:
Model business incubation programs are distinguished
by a commitment to incorporate industry best practices.
Management and boards of incubators should strive to:
• Commit to business incubation’s two core principles
• Obtain consensus on a mission that defnes the
incubator’s role in the community, then develop
a strategic plan containing quantifable objectives
to achieve that mission
• Structure the program for fnancial sustainability by
developing and implementing a realistic business plan
• Recruit and appropriately compensate management
capable of achieving the incubator’s mission and
helping companies grow
• Build an efective board of directors committed to
the incubator’s mission and to maximizing
management’s role in developing successful companies
• Prioritize management time to place the greatest
emphasis on client assistance, including proactive
advising and guidance that results in company
success and wealth creation
• Develop an incubator facility, resources, methods
and tools that contribute to the efective delivery of
business assistance to client frms, as well as address
each company’s developmental needs
• Develop stakeholder support, including a resource
network, that helps the incubation program’s client
companies and supports the incubator’s mission
and operations
• Maintain a management information system and
collect statistics and other information necessary
for ongoing program evaluation, thus improving
efectiveness and allowing the program to evolve
with clients’ needs
In summary, successful business incubators operate as
a business, have a positive impact on a community, have
an efective board of directors, and provide a nurturing
environment, hands-on assistance and a variety of
services for startup and fedgling frms during their most
vulnerable years. Research has shown that incubator
companies are much more likely to grow into viable job-
creating businesses than startups without such support.
Te Oklahoma Business Incubator Association (OBIA) was
formed more than 20 years ago to provide information,
networking, guidance and assistance to incubator operators,
as well as work with the Legislature to promote and beneft
business incubation in general and tenants specifcally.
Te National Business Incubation Association (NBIA) has
developed a set of industry guidelines to help incubator
managers better serve their clients. NBIA research has
consistently shown that incubation programs that adhere
to the principles and best practices of successful business
incubation generally outperform those that do not. Te
following industry guidelines are replicable and broadly
applicable to incubation programs around the world,
regardless of their focus or mission.
The Best Incubators Provide:
• Flexible space and leases
• Ofce services and equipment
• An on-site incubator manager as a resource for
business advice
• Exposure to a network of outside business and technical
consultants, ofen providing accounting, marketing,
engineering and legal advice
• Assistance with fnancing
• Assistance with marketing
Two Principles That Characterize
Effective Business Incubation:
1. Te incubator aspires to have a positive impact on its
community’s economic health by maximizing emerging
companies’ successes.
2. Te incubator itself is a dynamic model of a sustainable,
efcient business operation.
4
Standards for Success
Oklahoma Business
Incubator Association
“Tere has to be a desire in some way to work with us on
their business, or at least to be able to have us help with
their business,” Rickelman said.
While Oklahoma City and Tulsa ofer ample opportunities
and resources for business owners, other cities, such as
Stillwater, do not have as many. He describes the Center
for Business Development as the oil in the engine of
entrepreneurship for local communities.
“One of the things we provide small business owners and
a prospective entrepreneur is the ability to talk to someone
about their business, who is from the community and has
a desire for seeing success in that community,” Rickelman
said.
Rickelman said Billy Goat Ice Cream Company is
innovative and dynamic, which makes it interesting for
the community. Robinson said Meridian Technology
played a big role in helping the company secure a grant for
manufacturing equipment. Te equipment will be used to
produce their product on a commercial scale.
“Tat’s kind of been one of the larger puzzle pieces of our
progress so far and Meridian Tech has assisted us greatly
in identifying a nonproft agency to facilitate that grant,”
Robinson said.
Billy Goat Ice Cream has also beneftted from being able
to bounce ideas of of others and receiving guidance from
professionals in the industry. Te space was also a perk
of partnering with the Center for Business Development
– Meridian Technology already had a suite outftted for
commercial food production.
LevelOps Energy
The Launch Pad, Edmond, Okla.
Sid Helms, along with friends Calev Eastman and Jason
Wells, were at a point in their careers where they wanted
to do something diferent, challenging and innovative. So
the trio, who all had experience working in the oil and
gas sector, came together to form LevelOps energy, which
provides energy-sector companies and other entities with
comprehensive solutions from servers and switches to
towers, rank batteries and wellheads.
Successes
Oklahoma’s business incubators have helped grow many successful
businesses in 2014. Here are the stories of four Oklahoma businesses
that grew from fledging operations to fully formed companies.
5
Billy Goat Ice Cream Company
OSU Student Startup Central and
Meridian Technology Business Development Center
Stillwater, Okla.
Billy Goat Ice Cream Co., makes ice cream from goat’s milk
rather than cow’s milk. With an estimated one-third of all
Americans having some degree of lactose intolerance, using
goat’s milk means that the ice cream can be consumed by
people who are lactose intolerant.
Billy Goat Ice Cream Co., is the creation of RaShaun
Robinson and Caleb Neil, master’s in entrepreneurship
students at Oklahoma State University. Te business was
launched in OSU’s Student Startup Central, the program’s
student accelerator, afer placing frst in the Riata Center’s
Big Idea Pitch and Poster Competition. Robinson and Neil
received mentoring and support from the Spears School of
Business’s marketing department along the way.
Te business has now transitioned to Meridian Technology
Center for Business Development which has an FDA-
approved kitchen. Te Center ofers marketing and
networking assistance to clients. It also provides guidance
and someone to talk to about business ideas without having
to pay a large amount. So far, the business has raised $95,000
for equipment via a USDA grant.
“When you’re a business owner everyone is willing to help
you, if you want to write a big check”, Brad Rickelman,
assistant director of the Center for Business Development,
said, “but you can do that with us and as a client that doesn’t
cost you anything.”
Tere is no fee for entrepreneurs who want to come in and
discuss their business and ask questions. Virtual tenants,
clients who work with the center regularly but do not rent a
physical space, pay a monthly fee of $150. Residents of the
incubator pay the monthly fee plus rent (dependent on the
size of the ofce space) at the center to conduct business.
In order to become a client at the Center, certain criteria
must be met, including a business description, an application,
background check and interview. Rickelman said it is also
important they have a willingness to learn and work together
with the center.
6
Te company, which started in December 2013, is
headquartered at Te Launch Pad FT business incubator at
Francis Tuttle Technology Center in Edmond. Te Launch
Pad FT serves the needs of entrepreneurs starting a new
venture as well as owners of early stage companies facing
struggles in today’s economic environment.
“We were all at a point in our jobs where we had a desire to
do more with what we feel the Lord has given us as gifs and
we chose to throw in anything and everything make a go of
it,” said Helms, who serves as president and CEO. “Caleb ran
across the incubator as an option to get started and that is
what really launched us into a place to do our thing.”
LevelOps hired its frst employee in January 2014 and has
now expanded to 30 employees. Helms said the business
incubator and its director Fred Green have been invaluable to
LevelOps’ development.
“When starting a business there is just so much that you
are not prepared for,” Helms said. “You have no idea what
you may be missing. Being here in the incubator, under the
leadership of Fred Green, has allowed us to meet with him
weekly. Tey are essentially our mentors and guide us in
maturing as a business.”
Helms said LevelOps will maintain an ofce at the Launch
Pad for now.
Green said the growth of LevelOps has been impressive in
such a short time span.
“Te growth has been phenomenal,” he said. “From an
incubator’s perspective, this has been a dream client because
they listen, follow the program and they have been able to
exceed all expectations on their growth as a company in
revenue proft and employees. LevelOps is doing it the right
way.”
Te role of the company has evolved since opening its doors.
“We started as an oil and gas services company and we have
grown into other sectors,” Helms said. “We mainly deal with
technology and putting that technology online so companies
can use data to make better decisions.”
When looking to start the company he ran into several
roadblocks in trying to secure fnancing.
“I probably went to 40 diferent banks,” Helms said. “Trying
to get investment capital was an arduous endeavor.”
Helms said the decision was made to pool the partners’
money together and grow the company at a feasible pace.
“Tere was no way for us to forecast the blessing and the
wild growth we have experienced,” he said. “We have had
periods along the way over the past nine months where we
have just had to fnd a way to make it happen. Fortunately,
we have been able to make some good decisions with
investments in people and tools, and the right timing with
contracts, that the business has been able to grow at a rapid
clip.”
Te company has been able to secure contract work with
several major oil and gas players in Oklahoma, including
Devon Energy and American Energy Partners. He said
LevelOps recently secured a multi-year contract with the
City of Oklahoma City for its Oklahoma River project. Te
company will upgrade, confgure and maintain technology
along the river to help measure and communicate the water
condition and river levels.
Of the company’s 30 employees, none of them are pure
sales people, yet the company has grown from zero to a
multimillion dollar enterprise in its frst year.
“We have chosen not to hire sales people on purpose and
we allow, in general, the quality of our work to speak or
itself,” Helms said. “Tat has resulted in a tremendous
amount of additional work that been handed to our frm.”
Tey avoid hiring anyone who is not passionate about their
job.
“We fnd when folks are operating within their passion
and not just what they are getting a paycheck for, they can
be very efective,” he said. “We have been blessed to enjoy
giving folks the opportunity to do amazing things.”
Helms is pleased with how the company has matured.
“It is exciting to see our business grow more than any of
us had anticipated,” he said. “It is very gratifying to be a
part of that growth. A year from now, I hope we can say we
have exceeded every expectation and we continue to foster
growth, innovation and a place folks are happy to come to
work and generate value.”
Over the Fence Farms
James Strate Center for Business Development at
Autry Technology Center, Enid, Okla.
Linda Beguin found the perfect place to grow her small
business, Over the Fence Farms, when she discovered the
James W. Strate Center for Business Development at Autry
Technology Center in Enid, OK. Beguin and her husband,
Jerry, son, Adam, and mother, Betty Radclif, all pitch
in with the business. It has gone from an idea that was
validated when Beguin attended the annual Entrepreneurs
7
Inspire Bootcamp hosted by the Center to a thriving
business with two lines of retail merchandise and brand
new co-packing branch called Te Spotted Cow.
Products are prepared in a certifed kitchen inside the
James W. Strate Center. Over the Fence Farms markets
specialty pickles, spreads, spices, baking mixes and
refned pickle juice. Te main line is retailed in more
than 50 stores across the region and the co-packing arm is
manufacturing products for multiple Made in Oklahoma
food companies.
Over the Fence Farms has been housed in the Center for
nearly three years and Spotted Cow was accepted as a
new tenant in December 2014. Linda has fantastic peer
to peer relationships with our other incubator tenants,
mentors a number of start-ups and has embraced all
available trainings ofered by Autry Technology Center.
Over the Fence Farms is a true example of what you
picture as a rural small business success. In a culture
that is so focused on high tech/high growth, she shines
and has developed a business that will not only last, but
embraces our local economic ecosystem in an enthusiastic
manner. Te Center is beginning its seventh year and
can accommodate up to ten tenants. Te center holds
classes for would-be business owners and ofers coaching
services to small businesses not located in the incubator,
as well. Afer taking classes that help them learn the basics
of starting and operating a business, owners can enter
the Cherokee Strip Business Model Competition, which
awards cash and in-kind service awards. Over the Fence
Farms placed second in the competition in 2013 and was
able to put winnings toward growing the company. Te
competition is funded by donors interested in helping
build great entrepreneurial leaders and venture.
Businesses that are ready to start up can apply for a space
in the James Strate Center.
“We have a selection committee that helps pick who gets
to come in here,” said Brian Gaddy, director of James
Strate Center for Business Development. “Businesses pay
discount rent at frst, then the rent is increased. By the
fourth year, they are paying the same rent they would be
paying in the community.”
Te selection committee looks at the entrepreneur’s
business plan. If it’s not solid and well thought-out, the
committee will select someone else. When the committee
gives the nod to a potential business, the business
representatives are authorized to make an ofer. In
addition, the Grow Enid program provides sponsorships
to fedgling businesses. Te program is designed to foster
small businesses that won’t pack up and leave-or fold up.
“From an economic development standpoint, what we’re
doing is a long-term solution,” Gaddy said. “It’s a way to
build businesses that don’t go away.”
Green Okie
Moore Norman Technology Business Development
Center, Oklahoma City, Okla.
Kevin Sutter didn’t anticipate that his hobby would
turn into a small business. In 2010, he built a pergola
in his backyard, and then by word of mouth referrals,
began making more. He turned to the Moore Norman
Technology Center’s business incubator for advice, along
with low-rent ofce and workshop space.
Greg Kieson, business development center coordinator,
helped him narrow ideas for a construction business to
compressed natural gas conversions. Sutter eventually
settled on hardscape – building decks, patios and other
outdoor creations. His newly created business, Green
Okie, combines his passion for construction and the
outdoors.
“I decided I wanted to do something fun because that’s
what fuels me and my passion for this business,” Sutter
said. “I create something, stand back, look at it, the
customer is elated, and that makes me happy.”
Working with the Moore Norman Technology Center
helped provide the business basics, such as housekeeping
and internet connection, that are out of reach for many
startups. Te business incubator also provides Sutter with
opportunities to talk to other entrepreneurs.
Sutter said a computer sofware engineer from a
technology company gave him advice on marketing
brochures.
“Rather than focus on the technical aspects of how things
like cedar pergolas and outdoor kitchens are built, he said
I should emphasize the experience of spending family time
outdoors,” said Sutter.
In addition, Gina Bertoletti, business development center
assistant, helps make sure he’s on track for upcoming
events, including an upcoming home and garden show.
Bertoletti follows up with planning meetings to make sure
his brochures are complete and he’s on target for the event.
Finding new clients is pretty easy, Sutter said. Most of his
business comes by referral from previous clients. Finding
qualifed employees, however, is a challenge. Sutter said he
took a personality profle, so he could understand his own
traits which allows him to seek out employees who will
complement his personality.
Sutter said he hopes to expand his product line, including
masonry products, outdoor kitchens and do-it-yourself
kits with pre-cut and stained cedar planks.
O
k
l
a
h
o
m
a
C
e
r
t
i
f
i
e
d
I
n
c
u
b
a
t
o
r
s
8
N
u
m
b
e
r
o
f
i
n
c
u
b
a
t
o
r
s
i
n
t
h
e
a
r
e
a
#
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3
2
1
2
1
1
1
1
1
1
1
2
1
2
2
1
P
a
w
h
u
s
k
a
9
8
Pontotoc Technology
Business Development
Center
The Launch Pad –
Francis Tuttle
Edmond Mixed Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Advanced
Mfg.
Aviation Mfg.
and General
Use
Mfg./ Mixed
Use
2 2
7 6
13 8
7
1 0
4
Ada
Synergy Enterprise
Development
Professional
Office
25 2 Bethany
East Main Enterprise
Center and Incubator
Ada Art/Art
Related
4 1
Fax and copy machine,
library of resources
10
Caddo Kiowa Business
Development Center
OBAN coordinator on site Fort Cobb
3
5
4
10
3
1
20
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
The Catbird Seat
– UCO Small Business
Development Center
Financial planning, business
development and capital
Access to university
resources such as student
interns and faculty, video
conferencing, shared printing
/faxing/scanning facilities
Business guidance and
support services,
event promotion, financing
assistance, and use of
conference center
Mfg./Mixed
Use
Tri-County
Technology Center
Pawhuska Incubator
Pawhuska
14 4
Mixed
Use
Service and
Light Mfg.
3
5
8
4
11
15
4
8
7
3
Northwest Tech Small
Business Incubator
Partner resources, referrals,
financing, government
contracting
Management, technical
and financial
assistance
Waynoka Mfg.
2 1
Seminole Business
Development Center
Technology
or Innovative
Process/
Service
Mixed Use 2
11
1 Seminole
OSU Riata Center for
Entrepreneurship/
Cowboy Idea
Hatchery/MSE
New Venture Lab
Mfg./Mixed
Use
Mfg./Distr.
Mixed Use
The Forge 7
900 N. Stiles Ave., Oklahoma City, OK 73104 • 405-815-6552 • 800-879-6552 • OKcommerce.gov
Small Business
Incubator Certification Program
Oklahoma
2014 Annual Report
doc_155370384.pdf
With this file about small business incubator certification program.
Small Business
Incubator Certification Program
Oklahoma
2014 Annual Report
Business incubation is a business support process that
accelerates the successful development of startup and fedgling
companies by providing entrepreneurs with an array of
targeted resources and services. Tese services are usually
developed or orchestrated by incubator management and
ofered both in the business incubator and through a network
of providers. Critical to the operation of an incubator is the
provision of management guidance, technical assistance and
consulting tailored to young, growing companies. Incubators
also provide clients with the appropriate rental space and
fexible leases (generally at a cost lower than market rates),
shared basic business services and equipment, technology
support and administrative services, and assistance in
obtaining the fnancing necessary for company growth.
Incubators vary in organizational structure, the types of
clients they serve, and the way they deliver their services.
Incubators are highly adaptable and can have difering
goals, including diversifying rural economies, providing
employment for and increasing wealth of depressed inner
cities, and transferring technology from universities and
major corporations. Incubator clients ofen are at the
forefront of developing new and innovative technologies,
creating products and services that improve the quality of life
in communities around the world.
Te earliest incubation programs focused on a variety of
technology companies or on a combination of light industrial,
technology and service frms. Today, these programs are
referred to as mixed-use incubators. In more recent years,
incubators have emerged that target such industries as
food processing, medical technologies, space and ceramics
technologies, arts and crafs, and sofware development.
Incubator sponsors also have targeted programs to support
microenterprise creation, the needs of women and minorities,
environmental endeavors and telecommunications.
A business incubator’s main goal is to produce successful frms
that will leave the program fnancially viable and freestanding,
usually in two to three years. Tese incubator graduates
have the potential to create jobs, revitalize neighborhoods,
commercialize new technologies and strengthen local and
national economies. Typically, 30 percent of incubator
clients graduate each year. National Business Incubation
Association members report that 84 percent of incubator
graduates stay in their communities and continue to
provide a return to their investors.
Business incubation is a proven model for catalyzing the
process of starting and growing companies. It provides
entrepreneurs with the expertise, networks and tools
they need to make their ventures successful. Incubation
programs diversify economies, commercialize
technologies, create jobs and build wealth. As of October
2012, there were more than 1,250 incubators in the
United States, up from only 12 in 1980. NBIA estimates
there are about 7,000 business incubators worldwide.
In 1988, the Oklahoma Legislature passed the
Oklahoma Small Business Incubators Incentives Act,
which enables the tenants of a certifed incubator
facility to be exempt from state tax liability on income
earned as a result of occupancy for up to fve years.
In 2001, the Legislature amended the act to extend
the tenant’s tax exemption from fve to 10 years. Te
exemption remains in efect afer the tenant is no
longer an incubator occupant. In order to qualify
for the tax exemption from the sixth through the
tenth years, the tenant must make at least 75 percent
of its gross sales to out-of-state buyers, to buyers
located within the state if the product or service is
resold to an out-of-state customer, or to the federal
government. In addition, the act enables the sponsor
of a certifed incubator facility to be exempt from
Oklahoma income taxes for a period of 10 years.
Since the act’s inception, the state of Oklahoma has
benefted from increased revenues and increases in the
number of startup and expanding small businesses.
Tese Oklahoma businesses have created jobs and
enhanced economic activity in their communities.
2
Small Business
Incubator Certification Program
Introduction
Oklahoma Business Incubators
Oklahoma Incubator
Program Growth
Te role of the Department of Commerce in the incubator
process is to certify the incubators pursuant to O.S. Title
74 Section 5071-79 and convene critical partners to assure
standards of excellence. It is the responsibility of incubator
owners to hire managers to oversee and market their
incubators and provide business services to their tenants.
As 2014 began, Oklahoma had 40 certifed incubators.
Tree incubators, located in Ada, Pawhuska and Tulsa,
were approved for certifcation during the year, and
seven others, located in Allen, Ardmore, Stillwater, three
in Oklahoma City and one in Tulsa, closed for various
reasons. Of those, Rural Enterprises chose not to continue
their management of the Allen Community Development
Authority Business Incubator in Allen; the Ardmore
Technology Transfer Center reached its 10 year expiration
and has moved locations – new application pending;
the Morgan Accelerator in the Tech Park in Stillwater
transitioned from Meridian Technology Center to OSU
managed, therefore a new certifcation would need to
be in place; PHF Foundation Business Incubator and
Synergy Enterprise Development in Oklahoma City and
Greenwood Chamber Business Incubator in Tulsa reached
their 10 year expiration. Metro Technology Center
Business Development Center South in Oklahoma City
chose not to continue with their incubator.
As 2014 comes to a close, 36 certifed small business
incubators are operating in Oklahoma (see Appendix),
with tenants ranging from small service companies to
high-tech research and development operations and
manufacturing entities.
In 2014, Oklahoma incubator managers were asked to
complete a questionnaire to document their activities for
the current reporting period. Based on the information
from those who responded, 137 small businesses are
currently leasing space in Oklahoma’s small business
incubators, providing 979 full-time jobs. Te charts
at right show the growth in the incubator program
throughout the past 10 years.
Troughout the Oklahoma Small Business Incubator
Certifcation Program’s existence, a total of 738 small
businesses have located in an incubator. Of those, 369
have graduated from the program or relocated to a
larger facility, and 257 have remained in the state. Te
businesses that remain in the state report they currently
employ 1,805 people. Commerce believes the incubator
program will continue to make signifcant contributions
to Oklahoma’s economy.
3
Oklahoma Department of
Commerce and Incubators
2006 2008 2010 2012 2014
2006 2008 2010 2012 2014
200
150
100
50
0
1200
1000
800
600
400
200
0
50
40
30
20
10
0
2006 2008 2010 2012 2014
Characteristics of Model Business
Incubation Programs:
Model business incubation programs are distinguished
by a commitment to incorporate industry best practices.
Management and boards of incubators should strive to:
• Commit to business incubation’s two core principles
• Obtain consensus on a mission that defnes the
incubator’s role in the community, then develop
a strategic plan containing quantifable objectives
to achieve that mission
• Structure the program for fnancial sustainability by
developing and implementing a realistic business plan
• Recruit and appropriately compensate management
capable of achieving the incubator’s mission and
helping companies grow
• Build an efective board of directors committed to
the incubator’s mission and to maximizing
management’s role in developing successful companies
• Prioritize management time to place the greatest
emphasis on client assistance, including proactive
advising and guidance that results in company
success and wealth creation
• Develop an incubator facility, resources, methods
and tools that contribute to the efective delivery of
business assistance to client frms, as well as address
each company’s developmental needs
• Develop stakeholder support, including a resource
network, that helps the incubation program’s client
companies and supports the incubator’s mission
and operations
• Maintain a management information system and
collect statistics and other information necessary
for ongoing program evaluation, thus improving
efectiveness and allowing the program to evolve
with clients’ needs
In summary, successful business incubators operate as
a business, have a positive impact on a community, have
an efective board of directors, and provide a nurturing
environment, hands-on assistance and a variety of
services for startup and fedgling frms during their most
vulnerable years. Research has shown that incubator
companies are much more likely to grow into viable job-
creating businesses than startups without such support.
Te Oklahoma Business Incubator Association (OBIA) was
formed more than 20 years ago to provide information,
networking, guidance and assistance to incubator operators,
as well as work with the Legislature to promote and beneft
business incubation in general and tenants specifcally.
Te National Business Incubation Association (NBIA) has
developed a set of industry guidelines to help incubator
managers better serve their clients. NBIA research has
consistently shown that incubation programs that adhere
to the principles and best practices of successful business
incubation generally outperform those that do not. Te
following industry guidelines are replicable and broadly
applicable to incubation programs around the world,
regardless of their focus or mission.
The Best Incubators Provide:
• Flexible space and leases
• Ofce services and equipment
• An on-site incubator manager as a resource for
business advice
• Exposure to a network of outside business and technical
consultants, ofen providing accounting, marketing,
engineering and legal advice
• Assistance with fnancing
• Assistance with marketing
Two Principles That Characterize
Effective Business Incubation:
1. Te incubator aspires to have a positive impact on its
community’s economic health by maximizing emerging
companies’ successes.
2. Te incubator itself is a dynamic model of a sustainable,
efcient business operation.
4
Standards for Success
Oklahoma Business
Incubator Association
“Tere has to be a desire in some way to work with us on
their business, or at least to be able to have us help with
their business,” Rickelman said.
While Oklahoma City and Tulsa ofer ample opportunities
and resources for business owners, other cities, such as
Stillwater, do not have as many. He describes the Center
for Business Development as the oil in the engine of
entrepreneurship for local communities.
“One of the things we provide small business owners and
a prospective entrepreneur is the ability to talk to someone
about their business, who is from the community and has
a desire for seeing success in that community,” Rickelman
said.
Rickelman said Billy Goat Ice Cream Company is
innovative and dynamic, which makes it interesting for
the community. Robinson said Meridian Technology
played a big role in helping the company secure a grant for
manufacturing equipment. Te equipment will be used to
produce their product on a commercial scale.
“Tat’s kind of been one of the larger puzzle pieces of our
progress so far and Meridian Tech has assisted us greatly
in identifying a nonproft agency to facilitate that grant,”
Robinson said.
Billy Goat Ice Cream has also beneftted from being able
to bounce ideas of of others and receiving guidance from
professionals in the industry. Te space was also a perk
of partnering with the Center for Business Development
– Meridian Technology already had a suite outftted for
commercial food production.
LevelOps Energy
The Launch Pad, Edmond, Okla.
Sid Helms, along with friends Calev Eastman and Jason
Wells, were at a point in their careers where they wanted
to do something diferent, challenging and innovative. So
the trio, who all had experience working in the oil and
gas sector, came together to form LevelOps energy, which
provides energy-sector companies and other entities with
comprehensive solutions from servers and switches to
towers, rank batteries and wellheads.
Successes
Oklahoma’s business incubators have helped grow many successful
businesses in 2014. Here are the stories of four Oklahoma businesses
that grew from fledging operations to fully formed companies.
5
Billy Goat Ice Cream Company
OSU Student Startup Central and
Meridian Technology Business Development Center
Stillwater, Okla.
Billy Goat Ice Cream Co., makes ice cream from goat’s milk
rather than cow’s milk. With an estimated one-third of all
Americans having some degree of lactose intolerance, using
goat’s milk means that the ice cream can be consumed by
people who are lactose intolerant.
Billy Goat Ice Cream Co., is the creation of RaShaun
Robinson and Caleb Neil, master’s in entrepreneurship
students at Oklahoma State University. Te business was
launched in OSU’s Student Startup Central, the program’s
student accelerator, afer placing frst in the Riata Center’s
Big Idea Pitch and Poster Competition. Robinson and Neil
received mentoring and support from the Spears School of
Business’s marketing department along the way.
Te business has now transitioned to Meridian Technology
Center for Business Development which has an FDA-
approved kitchen. Te Center ofers marketing and
networking assistance to clients. It also provides guidance
and someone to talk to about business ideas without having
to pay a large amount. So far, the business has raised $95,000
for equipment via a USDA grant.
“When you’re a business owner everyone is willing to help
you, if you want to write a big check”, Brad Rickelman,
assistant director of the Center for Business Development,
said, “but you can do that with us and as a client that doesn’t
cost you anything.”
Tere is no fee for entrepreneurs who want to come in and
discuss their business and ask questions. Virtual tenants,
clients who work with the center regularly but do not rent a
physical space, pay a monthly fee of $150. Residents of the
incubator pay the monthly fee plus rent (dependent on the
size of the ofce space) at the center to conduct business.
In order to become a client at the Center, certain criteria
must be met, including a business description, an application,
background check and interview. Rickelman said it is also
important they have a willingness to learn and work together
with the center.
6
Te company, which started in December 2013, is
headquartered at Te Launch Pad FT business incubator at
Francis Tuttle Technology Center in Edmond. Te Launch
Pad FT serves the needs of entrepreneurs starting a new
venture as well as owners of early stage companies facing
struggles in today’s economic environment.
“We were all at a point in our jobs where we had a desire to
do more with what we feel the Lord has given us as gifs and
we chose to throw in anything and everything make a go of
it,” said Helms, who serves as president and CEO. “Caleb ran
across the incubator as an option to get started and that is
what really launched us into a place to do our thing.”
LevelOps hired its frst employee in January 2014 and has
now expanded to 30 employees. Helms said the business
incubator and its director Fred Green have been invaluable to
LevelOps’ development.
“When starting a business there is just so much that you
are not prepared for,” Helms said. “You have no idea what
you may be missing. Being here in the incubator, under the
leadership of Fred Green, has allowed us to meet with him
weekly. Tey are essentially our mentors and guide us in
maturing as a business.”
Helms said LevelOps will maintain an ofce at the Launch
Pad for now.
Green said the growth of LevelOps has been impressive in
such a short time span.
“Te growth has been phenomenal,” he said. “From an
incubator’s perspective, this has been a dream client because
they listen, follow the program and they have been able to
exceed all expectations on their growth as a company in
revenue proft and employees. LevelOps is doing it the right
way.”
Te role of the company has evolved since opening its doors.
“We started as an oil and gas services company and we have
grown into other sectors,” Helms said. “We mainly deal with
technology and putting that technology online so companies
can use data to make better decisions.”
When looking to start the company he ran into several
roadblocks in trying to secure fnancing.
“I probably went to 40 diferent banks,” Helms said. “Trying
to get investment capital was an arduous endeavor.”
Helms said the decision was made to pool the partners’
money together and grow the company at a feasible pace.
“Tere was no way for us to forecast the blessing and the
wild growth we have experienced,” he said. “We have had
periods along the way over the past nine months where we
have just had to fnd a way to make it happen. Fortunately,
we have been able to make some good decisions with
investments in people and tools, and the right timing with
contracts, that the business has been able to grow at a rapid
clip.”
Te company has been able to secure contract work with
several major oil and gas players in Oklahoma, including
Devon Energy and American Energy Partners. He said
LevelOps recently secured a multi-year contract with the
City of Oklahoma City for its Oklahoma River project. Te
company will upgrade, confgure and maintain technology
along the river to help measure and communicate the water
condition and river levels.
Of the company’s 30 employees, none of them are pure
sales people, yet the company has grown from zero to a
multimillion dollar enterprise in its frst year.
“We have chosen not to hire sales people on purpose and
we allow, in general, the quality of our work to speak or
itself,” Helms said. “Tat has resulted in a tremendous
amount of additional work that been handed to our frm.”
Tey avoid hiring anyone who is not passionate about their
job.
“We fnd when folks are operating within their passion
and not just what they are getting a paycheck for, they can
be very efective,” he said. “We have been blessed to enjoy
giving folks the opportunity to do amazing things.”
Helms is pleased with how the company has matured.
“It is exciting to see our business grow more than any of
us had anticipated,” he said. “It is very gratifying to be a
part of that growth. A year from now, I hope we can say we
have exceeded every expectation and we continue to foster
growth, innovation and a place folks are happy to come to
work and generate value.”
Over the Fence Farms
James Strate Center for Business Development at
Autry Technology Center, Enid, Okla.
Linda Beguin found the perfect place to grow her small
business, Over the Fence Farms, when she discovered the
James W. Strate Center for Business Development at Autry
Technology Center in Enid, OK. Beguin and her husband,
Jerry, son, Adam, and mother, Betty Radclif, all pitch
in with the business. It has gone from an idea that was
validated when Beguin attended the annual Entrepreneurs
7
Inspire Bootcamp hosted by the Center to a thriving
business with two lines of retail merchandise and brand
new co-packing branch called Te Spotted Cow.
Products are prepared in a certifed kitchen inside the
James W. Strate Center. Over the Fence Farms markets
specialty pickles, spreads, spices, baking mixes and
refned pickle juice. Te main line is retailed in more
than 50 stores across the region and the co-packing arm is
manufacturing products for multiple Made in Oklahoma
food companies.
Over the Fence Farms has been housed in the Center for
nearly three years and Spotted Cow was accepted as a
new tenant in December 2014. Linda has fantastic peer
to peer relationships with our other incubator tenants,
mentors a number of start-ups and has embraced all
available trainings ofered by Autry Technology Center.
Over the Fence Farms is a true example of what you
picture as a rural small business success. In a culture
that is so focused on high tech/high growth, she shines
and has developed a business that will not only last, but
embraces our local economic ecosystem in an enthusiastic
manner. Te Center is beginning its seventh year and
can accommodate up to ten tenants. Te center holds
classes for would-be business owners and ofers coaching
services to small businesses not located in the incubator,
as well. Afer taking classes that help them learn the basics
of starting and operating a business, owners can enter
the Cherokee Strip Business Model Competition, which
awards cash and in-kind service awards. Over the Fence
Farms placed second in the competition in 2013 and was
able to put winnings toward growing the company. Te
competition is funded by donors interested in helping
build great entrepreneurial leaders and venture.
Businesses that are ready to start up can apply for a space
in the James Strate Center.
“We have a selection committee that helps pick who gets
to come in here,” said Brian Gaddy, director of James
Strate Center for Business Development. “Businesses pay
discount rent at frst, then the rent is increased. By the
fourth year, they are paying the same rent they would be
paying in the community.”
Te selection committee looks at the entrepreneur’s
business plan. If it’s not solid and well thought-out, the
committee will select someone else. When the committee
gives the nod to a potential business, the business
representatives are authorized to make an ofer. In
addition, the Grow Enid program provides sponsorships
to fedgling businesses. Te program is designed to foster
small businesses that won’t pack up and leave-or fold up.
“From an economic development standpoint, what we’re
doing is a long-term solution,” Gaddy said. “It’s a way to
build businesses that don’t go away.”
Green Okie
Moore Norman Technology Business Development
Center, Oklahoma City, Okla.
Kevin Sutter didn’t anticipate that his hobby would
turn into a small business. In 2010, he built a pergola
in his backyard, and then by word of mouth referrals,
began making more. He turned to the Moore Norman
Technology Center’s business incubator for advice, along
with low-rent ofce and workshop space.
Greg Kieson, business development center coordinator,
helped him narrow ideas for a construction business to
compressed natural gas conversions. Sutter eventually
settled on hardscape – building decks, patios and other
outdoor creations. His newly created business, Green
Okie, combines his passion for construction and the
outdoors.
“I decided I wanted to do something fun because that’s
what fuels me and my passion for this business,” Sutter
said. “I create something, stand back, look at it, the
customer is elated, and that makes me happy.”
Working with the Moore Norman Technology Center
helped provide the business basics, such as housekeeping
and internet connection, that are out of reach for many
startups. Te business incubator also provides Sutter with
opportunities to talk to other entrepreneurs.
Sutter said a computer sofware engineer from a
technology company gave him advice on marketing
brochures.
“Rather than focus on the technical aspects of how things
like cedar pergolas and outdoor kitchens are built, he said
I should emphasize the experience of spending family time
outdoors,” said Sutter.
In addition, Gina Bertoletti, business development center
assistant, helps make sure he’s on track for upcoming
events, including an upcoming home and garden show.
Bertoletti follows up with planning meetings to make sure
his brochures are complete and he’s on target for the event.
Finding new clients is pretty easy, Sutter said. Most of his
business comes by referral from previous clients. Finding
qualifed employees, however, is a challenge. Sutter said he
took a personality profle, so he could understand his own
traits which allows him to seek out employees who will
complement his personality.
Sutter said he hopes to expand his product line, including
masonry products, outdoor kitchens and do-it-yourself
kits with pre-cut and stained cedar planks.
O
k
l
a
h
o
m
a
C
e
r
t
i
f
i
e
d
I
n
c
u
b
a
t
o
r
s
8
N
u
m
b
e
r
o
f
i
n
c
u
b
a
t
o
r
s
i
n
t
h
e
a
r
e
a
#
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3
2
1
2
1
1
1
1
1
1
1
2
1
2
2
1
P
a
w
h
u
s
k
a
9
8
Pontotoc Technology
Business Development
Center
The Launch Pad –
Francis Tuttle
Edmond Mixed Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Advanced
Mfg.
Aviation Mfg.
and General
Use
Mfg./ Mixed
Use
2 2
7 6
13 8
7
1 0
4
Ada
Synergy Enterprise
Development
Professional
Office
25 2 Bethany
East Main Enterprise
Center and Incubator
Ada Art/Art
Related
4 1
Fax and copy machine,
library of resources
10
Caddo Kiowa Business
Development Center
OBAN coordinator on site Fort Cobb
3
5
4
10
3
1
20
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
Mfg./Mixed
Use
The Catbird Seat
– UCO Small Business
Development Center
Financial planning, business
development and capital
Access to university
resources such as student
interns and faculty, video
conferencing, shared printing
/faxing/scanning facilities
Business guidance and
support services,
event promotion, financing
assistance, and use of
conference center
Mfg./Mixed
Use
Tri-County
Technology Center
Pawhuska Incubator
Pawhuska
14 4
Mixed
Use
Service and
Light Mfg.
3
5
8
4
11
15
4
8
7
3
Northwest Tech Small
Business Incubator
Partner resources, referrals,
financing, government
contracting
Management, technical
and financial
assistance
Waynoka Mfg.
2 1
Seminole Business
Development Center
Technology
or Innovative
Process/
Service
Mixed Use 2
11
1 Seminole
OSU Riata Center for
Entrepreneurship/
Cowboy Idea
Hatchery/MSE
New Venture Lab
Mfg./Mixed
Use
Mfg./Distr.
Mixed Use
The Forge 7
900 N. Stiles Ave., Oklahoma City, OK 73104 • 405-815-6552 • 800-879-6552 • OKcommerce.gov
Small Business
Incubator Certification Program
Oklahoma
2014 Annual Report
doc_155370384.pdf