Statistics Canada Census provided Northerners with a stark reminder of the economic and population decline in their communities. At the same time, the region has witnessed an increase in the number of small businesses and start-up companies that are helping diversify and strengthen our economy. In fact, while we all aspire to attract the mega company with hundreds of well paid jobs, the reality is that small businesses have and continue to create most of the jobs.
Some of this growth has been the result of vastly improved telecommunications infrastructure that has allowed our region to overcome its isolation and geographical barriers. At the same time, increasing global competition has created business opportunities for young entrepreneurs. This emerging sector, however, has its own challenges to overcome.
Business literature and empirical evidence shows that the great majority of start-up companies fail within five years of operation. Those that do survive and grow have to continuously manage their growth and remain innovative in their product and service delivery. Many small companies have chosen or have been forced to cut overhead costs to survive. One of the ways this has been accomplished is through a home-based business. It has worked well for many entrepreneurs and it continues to be preferred by many who need to juggle family and work.
However, while home-based businesses have their advantages they also have their limitations. In fact, they do not offer a professional image; there is lack of participation in marketing opportunities; and there are fewer opportunities for transition from the home-based to a full office environment. In most cases what seems to be missing are the support systems that help such small business survive and prosper into the next stage. Business Incubators have been one answer to this challenging question. The following profile will help highlight successful strategies and a winning model that is creating exciting opportunities for many start-up companies right here in Northwestern Ontario.
The Augesco Business Incubator opened its doors a couple of years ago and in less than six months it was already at near capacity with new small businesses opening or moving into its location in Thunder Bay’s downtown north core.
In fact, with many senior or more-established businesses moving into the inner city area, there have been a range of vacant commercial buildings available for many years. So, what is different here? What are the key ingredients for a successful early-stage business formula.
According to Franco Crupi, Principal of Crupi Consulting, the answers came through the success rate of those clients who were usually in close contact and asking for advice and assistance to overcome the natural barriers and hurdles that a company will experience as it grows. While support and assistance for small businesses is readily available in Thunder Bay and other Northern Ontario communities, there seems to have been an unfilled gap in the market place.
Crupi moved in to fill the niche and the response has been outstanding.
The name of his Business Incubator “Augesco” in Latin means “to begin to grow” and already over 20 companies have moved in. Some, like Firedog Marketing (winner of the 2006 Northern Ontario Business Award) and others, are already experiencing the level of success that has allowed them to expand their operation and move out (graduate) into their own office space. They are an eclectic bunch ranging from public relations/marketing to graphic/web design, to multimedia & advertising, to software development, to E-Commerce, research and communications to engineering resource management, accounting and consulting. With an average age of 30-35 years, these entrepreneurs are enhancing their skills and products through a solid business support and networking system that the centre offers.
In conclusion, The Augesco Business Incubator has been and continues to be an outstanding success story. Enhancing the growth and long-term viability of small enterprises is only part of this success, as a downtown core building that was almost empty is now starting to bustle with activity and excitement. How many more young and innovative entrepreneurs are ready to move out of their homes and join like minded individuals create a dynamic and successful example of the Northern Ontario enterprising spirit?
More information on the Augesco Business Incubator can be found at
www.crupi.biz/
augesco or by phoning (807) 346-7000.
Frank Pullia is the Principal of Pullia Accounting & Consulting and a former Councillor. He can be reached atfrank@frankpullia.comor by phoning (807) 474-8294.