Would you like to be the next Mark Zuckerberg? Perhaps the next Tom Anderson? These entrepreneurs, famous for Facebook and MySpace, respectively, have become icons for young entrepreneurs everywhere.
Students, inspired by the successes of peers, have begun to look outside the traditional classroom setting for business development experience. Classical lecture-based teaching styles no longer appear sufficient for the budding business student. Universities are noticing the demand for alternative learning opportunities, so the Student Business Incubator has been identified as the primary means through which to acquire this hands-on experience.
A Student Business Incubator is a space where fledgling businesses can thrive without complete exposure to the market environment. It provides an arena for students to test out the business theorems they learn about in class without the large liability that accompanies the establishment of a new business.
According to Matt Richtel of The New York Times, “there are roughly 600 business incubators [nationwide], which generally offer fledgling businesses office space, and sometimes, other office support or consulting services.” Of the approximately 600 nationwide business incubators, 27 percent are affiliated with a university.
If a student’s venture is less successful than anticipated, the student is not financially responsible for the “rented” space that his or her business occupied. According to a study conducted by the University of Michigan in conjunction with the National Business Incubator Association, “87 percent of incubator graduates stay in business.” Talk about a success rate.
How is all of this information applicable to the University of Wisconsin-Madison? With the opening of the Student Activity Center, a Student Business Incubator will come to fruition on this campus. In collaboration with Students In Free Enterprise, the Associated Students of Madison developed the SBI.
The SAC will not only house six offices designed for student-run businesses to test out their new products or business concepts, but a resource desk will provide any budding entrepreneur with information regarding market strategies, business basics, financial and legal support, as well as networking opportunities within Madison.
Only students may apply to participate in the SBI venture. At other university-sponsored SBIs, such as the one present at the University of California-Berkeley’s business school, post-graduate students may also apply.
However, there are certain criteria for students applying. As an example, a marijuana manufacturing plant will not receive space. Sorry to all “Weeds” enthusiasts, but only legal business ventures are eligible. A student may submit an application regardless of whether or not his or her business idea has already come to fruition. If a student started a business in his or her crammed dorm room and is looking to expand, this is the place to possibly begin that process.
Additionally, applicants are asked to consider whether or not the SBI space within the SAC will accommodate their businesses’ needs. Looking to start a dairy farm? The SAC is not the logical choice for such an enterprise.
Pending approval by the legal entities residing in Bascom Hall, the applications for the Student Business Incubator will be available starting today. This could be the opportunity that enables the smallest of businesses to flourish into a multimillion-dollar corporation. According to a 2006 report by Linda Knopp of the National Business Incubator Association, business incubators in North America generated approximately $17 billion in revenue in the year 2005.
Had Sconnie Nation been able to apply for space, would their venture have taken off even more quickly? It is impossible to say, but the future for entrepreneurs on this campus looks bright.
Applications will be available at www.asm.wisc.edu or www.uwsife.org. They must be submitted by November 14 to [email protected].
Hannah Karns ([email protected]) is a junior majoring in political science and international studies. She is also vice chair of ASM Student Council.
