Three Years Of Hatching; Three Years Of Success

By Patrick Huddie and Carol Morrison



As the Howard County Economic Development Authority's NeoTech Incubator wraps up its third year, there are many accomplishments to cheer about. New companies are being formed, high paying jobs are being created, a new tax base is being established, and internationally acclaimed programs are being developed to aid the budding high tech entrepreneur.

Incubators incubate, or nurture, entrepreneurs into highly profitable, self-sustaining companies. They do this by providing services, office and laboratory space and an entrepreneurial environment. Howard County Economic Development Authority's NeoTech Incubator provides all of these services with a focus on the information technology industry.

The Incubator's facility provides space for up to 12 startup companies, with a goal to "graduate" three companies per year from the program. So far, four companies have graduated from NeoTech. These graduate companies typically employ about 10 employees and locate within five miles of the Incubator. All told, more than 100 jobs have been created from the 10 existing companies and four graduates that have participated in the program. The economic impact to Howard County is over $10 million per year.

A recent National Business Incubation Association survey found that 87% of companies nationally that have participated in an incubation process are still operating successfully five years after graduation. Also, 84% of incubator graduates stay in, and continue to provide a return on investment to, their communities. NeoTech is well on track to exceed these percentages.

Last year, the NeoTech Incubator Advisory Board completed the Incubator's strategic plan. This plan defines a mission and four goals in support of that mission. The mission is to establish an environment such that small companies, and first-time entrepreneurs, can grow, prosper and create jobs in Howard County. The goals are Operational Effectiveness, Economic Development, Entrepreneurial Environment and Financial Sustainability.

To ensure operational effectiveness, the Incubator has implemented stringent company entry screening processes, progress assessment and graduation monitoring. Business assistance, professional guidance and access to professional information technology networking events also contribute to effective operations. Just as important, NeoTech has designed and implemented innovative programs that provide direct access to funding sources.

The economic development goal ensures that the Incubator provides measurable and documented economic benefits by attracting, growing, measuring and transitioning new high tech companies into the Howard County community.

Creating and nurturing a local, diverse, entrepreneurial environment for the Incubator and for Howard County as a whole contributes to the economic development goal. This is achieved through mentoring, networks, educational and outreach support, and the establishment of best practices models.

A major long-term goal of the NeoTech Incubator is to become financially independent, thus achieving its financial sustainment goal. In the meantime, it operates with some funding from government sources, including physical space donated by Howard County Government.

In the past 12 months, significant progress has been made in implementing major initiatives. Standards of excellence have been set, and ties to regional "feeder" organizations such as the Johns Hopkins University Applied Physics Laboratory and the National Institute of Standards and Technology have been created. Relationships with funding sources, important for Incubator companies, have been developed along with an internationally acclaimed opportunity for entrepreneurs to present to investors. This program, called Angels & Eggs, enters its second year with a the main event to be held on October 24.

The NeoTech Incubator is part of the very successful Howard County Economic Development Authority's Center for Business and Economic Development. In addition, the Center includes a Business Resource Center (BRC), a SCORE office, a Maryland Small Business Development Center (SBDC) office, a Jim Rouse Entrepreneurial Fund (JREF) funding office, a Maryland Department of Economic Development (DBED) regional office, an International Trade Office and an Intellectual Property Advisory Office. Both NeoTech Incubator companies and BRC clients can use these counseling and consulting services.

With the high quality programs and established standards of excellence in place, NeoTech is always looking for new high tech entrepreneurs for the Incubator program. The NeoTech is also looking for business executives who can volunteer their time to mentor Incubator companies and participate on their advisory boards.

So, three years of hatching has created three years of success. The NeoTech Incubator and the Center have established themselves as the centerpiece for entrepreneurship in Howard County and the Baltimore/Washington area.

To find out more about the NeoTech Incubator or to volunteer your professional services to assist startup companies, contact Carol Morrison at 410-313-6550, cmorrison @hceda.org, or visit the web site at www.hecda.org/incubator.



Patrick Huddie, chair of the NeoTech Incubator Committee, is a partner of Evergreen Capital, an investment banking firm, managing partner of the Chesapeake Emerging Opportunity (CEO) Club and is a former chair of the Howard County Economic Development Authority.



Carol Morrison is the manager of Howard County Economic Development Authority's NeoTech Incubator.



Note: See more on the Eggs and Angels program and information on the incubator in our special High Tech Focus Section this month.