New Stimulus Effort Should Focus on Small Business, Business Incubators, Economic Gardening, says Incubation Expert

ORLANDO, Fla. --- The next step in stimulating the national economy’s recovery from the worst recession since World War II should focus on small business, business incubators and economic gardening, said Dr. Tom O’Neal, founder and executive director of the University of Central Florida Business Incubation Program.

“Most of the net new jobs in the U.S. are created by a relatively small number of small businesses,” Dr. O’Neal said.

“A stimulus package that targets small companies and support programs such as qualified business incubators and economic gardening efforts, would likely generate a substantially higher return on investment than other efforts that target the nation’s economic recovery,” Dr. O’Neal said.

Dr. O’Neal said that while current stimulus programs have shored up the nation’s financial system, investment capital programs targeting small and expanding business that would generate growth and new jobs isn’t forthcoming.

“Something to stimulate investment in small business would be huge right now,” Dr. O’Neal said.
“Incubation programs and economic gardening is a good investment, but the well is dry right now for expansion capital. Many sound, promising new businesses are poised for growth and expansion, but they don’t have access to capital to fund that growth,” Dr. O’Neal explained.

“They’re successful but they’re stuck. We need something to free up the capital markets and get the investment capital flowing again,” he said.

Dr. O’Neal, who recently received the Regional Outstanding Resource Partner Award from the Florida Small Business Development Center Network, said successful incubation programs help entrepreneurs shape promising business concepts into thriving enterprises that create new jobs and new revenues.

“We know how to identify startup enterprises with the highest chances of success, and we know how to accelerate their growth as sustainable companies,” O’Neal said.

“There is a lack in investment capital, and that’s where stimulus efforts could help the most,” he concludes.

For more information about this release contact:

Dr. Tom O’Neal, Executive Director, UCF Business Incubation Program, 407 882-1120, oneal@mail.ucf.edu;

Larry Vershel or Beth Payan, Larry Vershel Communications, 407-644-4142 or LvershelCo@aol.com.

About the UCF Incubation Program:

Since its founding in 1999, the UCF Business Incubation Program has helped more than 130 emerging companies (including nearly 80 current clients) create over $500 million in annual revenue and more than 1600 new jobs with an average salary of $59,000. With six facilities across the Greater Orlando community, the Incubation Program is a collaboration in economic development between the University of Central Florida, Orange County, the City of Orlando, Seminole County, the City of Winter Springs, The City of Sanford, Lake County, the City of Leesburg, and the Florida High Tech Corridor Council. For more information, please visit http://www.incubator.ucf.edu/.