GENEVA, OH—A proposed business incubator that would help create jobs and boost tourism in Ashtabula County is seeking to open its doors, but is relying on donations, grants and fundraisers in order to do so. At the Ferrante Winery in Geneva, U.S. Sen. Sherrod Brown (D-OH) today outlined new legislation that would help support business incubators—like the proposed “Pairings Ohio” in Geneva— in hard-hit regions of Ohio. The Business Incubator Promotion Act would help make more Ohio communities eligible to receive funds that support business incubators through the U.S. Economic Development Administration (EDA).

“We know that nearly two-thirds of new jobs are created by small businesses.  We also know those small businesses face challenges getting off the ground. That’s why business incubators are so important—they provide technical assistance to help entrepreneurs take a viable idea and make it a viable business,” Brown said. “Pairings Ohio hopes to do just that by giving startup support to new wineries in the area. It seeks to create jobs and bring more dollars to Geneva and greater Ashtabula County through increased culinary tourism.”

“The Business Incubator Promotion Act would provide grants, through a competitive process, to help regions introduce new businesses and expand existing ones. Such incubator support has already created hundreds of thousands of jobs by providing start-up companies with support services to help turn innovative ideas into viable businesses,” Brown continued. “This legislation is aimed at helping these regions create higher-skill, higher-wage jobs—meaning that more Ohio communities could support homegrown entrepreneurship.”

Brown—who was joined by James Pearson, City Manager for the City of Geneva, Mark Winchell, board president of the proposed Pairings, Ohio’s Wine & Culinary Experience Incubator, and Jim Arbaczewski, the past president of the Ohio Wine Producers Association and member of the Ferrante Winery family—will discuss the importance of business incubators and how the legislation will help more entrepreneurs across Ohio launch their small businesses. Dr. Susan Stocker, dean of Kent State University at Ashtabula—which has a Viticulture and Enology Science and Technology Alliance (VESTA) program—also attended.  

“The vision to build a wine and culinary center in Geneva started from a group of community leaders from the private and public sectors who took a different approach on how to grow the local economy.  Looking at the areas strengths, we began pursuing a strategy that is community driven, sustainable and built upon the regions existing resources; the growing wine industry and our plentiful agricultural assets,” Pearson said.

“Providing innovation and entrepreneurial skills, the Winery Incubator at Pairings will create an environment to foster and support sustainable growth,” Winchell said. “This growth will benefit Ohioans by providing hands on training, shared resources and a vision for the growth in viticulture and enology.”

“Pairings” seeks to create jobs and provide support to start-up wineries in Northeast Ohio, as well as boost culinary tourism in and around Ashtabula County. It hopes to break ground by 2013, but is relying on private donations and fundraisers in order to do so. Business incubators can provide office space, training, advice, and other resources to fledgling business enterprises.

The support offered by business incubators can include providing office space, training, advice, and other resources to fledgling business enterprises. According to an independent report commissioned by the EDA, every $10,000 in EDA funds invested in business incubators generates an estimated 47 to 69 local jobs. In rural areas, business incubator projects are the most effective type of EDA projects. The NBIA estimates that in 2005, business incubators supported more than 27,000 start-up companies providing full-time employment to more than 100,000 workers—generating more than $17 billion in annual revenue. NBIA also points to research showing that every dollar of federal funds devoted to an incubator generates approximately $30 in local tax revenue.

 

The Business Incubator Promotion Act ensures that areas that are the most economically distressed and in need of EDA funds have opportunities to receive those funds. It also promotes business incubators by both constructing new incubators and expanding and supporting existing incubators.

 

The federal share for EDA funding generally is up to 50 percent.  In cases of higher unemployment, that percentage can increase up to 80 percent. The legislation would also give the EDA authority to award grants for the development of business incubator feasibility studies and plans for the construction of new or expansion of existing business incubators, as well as the implementation of those studies and plans.  It would also give the EDA the ability to award grants to support existing and new operations of business incubators to assist them in becoming self-sustainable.  

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