In Business: Exploring the Creation of a Business Incubator for Entrepreneurs with Developmental Disabilities

by Jill Wagar

“There are going to be failures in traditional employment placement, and there’ll be failures in supported entrepreneurship. It’s our job in supporting people to ensure that those risks, those failures aren’t so catastrophic as to deter the person from ever trying again.”
—Quote from a job developer, 2003

Self-employment is an under-used approach to job development for people with developmental disabilities. However, job developers are beginning to recognize it as a viable alternative to traditional employment models for many of the people they support (Doyel, 2000). Our research of vocational rehabilitation services in Calgary shows that self-employment usually occurs within the context of supported employment programs. Many job developers do not have a business background and are unfamiliar with how best to support the individuals they work with. Here in Calgary, there are pockets of self-employment but few systematic initiatives to help support workers develop this employment option (Rehabilitation Review 13(8), (9)).

In the fall of 2003 we spoke to vocational rehabilitation service providers as part of a study to explore the potential for creating a business incubator specifically for people with developmental disabilities in Calgary. A total of 13 support workers from nine different agencies identified elements a small business incubator should have in order to provide meaningful support to entrepreneurs with developmental disabilities. This Rehabilitation Review summarizes the findings from those discussions.

More than 600 business incubators exist in North America today (Peters, Rice & Sundararajan, 2004). They provide a supportive environment for startup businesses. Elements of a business incubator typically include flexible rental space, flexible leases and shared administrative services and equipment (e.g., fax, voicemail/word processing). They also provide, either on-site or through a network, many business supports that a small firm needs, from sales and marketing advice to business planning to financial sources (Whettingsteel, 2000).

Typically, there are three stages in the business incubator process:

• Pre-incubation: Individuals are screened for capacity and compatibility and may be referred to training programs for business skill development.
• Incubation: Entrepreneurs are tenants in the business incubator and can use the services for up to three years.
• Graduation: People move their business into the community. They may still be able to access some services from the business incubator, if needed.

Small-business incubators can offer many of the supports and strategies new entrepreneurs need to research, develop, implement and expand their businesses. However, they are often unable to meet the unique needs of people with developmental disabilities, e.g. individualized supports, concrete, hands-on assistance, staff with familiarity of disability issues and accessible, low-cost services. Job developers who participated in our focus groups identified resources that could make a business incubator more accessible.

Focus group participants suggested introducing workshops to help entrepreneurs develop business skills for the implementation of their respective business idea. Focus groups also suggested that workshops be offered to staff, as they would then have a better understanding of how to help their client with business start-up and implementation. Staff who attend workshops could then network with job developers from other agencies.

There is a lack of accessible information for entrepreneurs when it comes to things such as business plan templates. The business incubator could have an on-site resource library with plain language information.

Transportation is not usually an issue for entrepreneurs without disabilities, as most people drive and have access to a vehicle. But many people with developmental disabilities do not drive, a fact which creates yet another barrier to business models that rely on deliveries to customers, attending meetings or purchasing large amounts of supplies. The business incubator design could address the huge challenge of transportation by incorporating access to it (such as having an on-site van/driver).

Job developers indicated that a central location for the business incubator would be extremely beneficial. This central location would encourage all agencies to have a vested interest in the incubator's success because all clients would potentially have access to it.

The problem of obtaining startup funding for entrepreneurs with developmental disabilities is more complex than for entrepreneurs without a disability. Often, individuals with a disability do not have the credit history required by traditional lenders. Coupled with this, they often do not have the ability to pay back the loan at the terms and rates insisted upon by traditional institutions. A business incubator should offer the service of an individual who is experienced in writing and obtaining grant and fund monies. These monies could be used to alleviate the strain of trying to acquire money for business start-up.

The person managing the business incubator should have a strong knowledge of business best practices, as well as first-hand experience running a small business. They should also have the ability to learn new things, as this is a key characteristic of entrepreneurs who succeed. As well, focus groups recommended that the incubator have a second staff person who has experience working with people who have a developmental disability.

Membership may encourage agencies to share resources more extensively. Most agencies have limited time and resources, so without an investment of some kind in the incubator, effective partnerships may not happen.

Staff feel that building stakeholders is one of the greatest challenges an incubator can face. One suggestion they generated to combat this challenge was to focus on a wider pool of stakeholders, such as for-profit agencies and businesses in the community.

Job developers are not without concerns regarding the incubator model. If such a business incubator should fail, it may feed into the stereotype that people with developmental disabilities cannot be entrepreneurs. People worry that a business incubator could be seen as another service provider or act as a day program for individuals. They also worry about how inclusive the incubator might be, and whether it will promote a step backward toward sheltered workshops, as opposed to a step forward toward independence. They emphasized that clients need to be seen as equal partners in the development of a potential business incubator.

There is widespread interest in the Calgary rehabilitation community to work toward developing a business incubator model that includes and supports everyone who wishes to become an entrepreneur. Future considerations would need to address:

• Time-line issues e.g., how long would entrepreneurs with developmental disabilities need in order to graduate with a strong business? Is a pre-incubation period necessary? If so, how long should it be?
• What the business incubator would look like: e.g., How much office space? How many businesses would start each year? Is there space for production?
• Who are the key players in the development of the incubator? Identifying these key players would entail a stakeholder analysis as well as making any partnerships formal.

• There are few entrepreneurial supports geared to the learning needs of people with developmental disabilities.
• Business incubators provide support through the entire implementation phase. Essential components include: Secretarial/receptionist services; Basic accounting services; Meeting facilities; A stable business address.
  

• A business incubator could offer tailored support for individuals with developmental disabilities e.g., plain language resources and start-up funding.
• Job developers told us a business incubator should be inclusive, but designed in such a way that it does not become another agency or day program.
  

Doyel, AM (2000). Entrepreneurs with disabilities can succeed in their own businesses. Supported Employment Infolines, 11(8), 1,3,6.

Duce, J. & Biersdorff, K (2002). Supporting self-employment. Rehabilitation Review, 13(8).

Dine, J. & Biersdorff, K (2002). What makes a self-employment venture successful? Rehabilitation Review, 13(9).

Peters, L, Rice, M., & Sundararajan, M. (2004). The role of incubators in the entrepreneurial process. Journal of Technology Transfer, 29, 83-91.

Whettingsteel, H. (2000). Going to work on an egg. Director, 53(8), 41-44.