Tenants wanted for new small business incubator

By Sharon Caskey Hayes

Being located on an Army ammunition base during war isn't hurting Jim Anderson's efforts at attracting tenants for the new Holston Business Development Center.

"It's the economy. That's what's really impacting it," said Anderson, manager of the Holston Business Development Center, Kingsport's first small business incubator under construction at Holston Army Ammunition Plant.

Anderson is now recruiting start-up businesses and entrepreneurs to locate at the center when it opens this summer. Several businesses have expressed interest in the site, and about seven companies would move in today if the facility were complete, Anderson said.

"But I'm satisfied it would be more if the economy was stronger," he said.

"When the economy turns around and our building is up, I would just about have to say that this thing will take off like wildfire," he said.

In the meantime, Anderson is trying to spread the word about the center by speaking to various community and civics groups in Kingsport.

The 13,000-square-foot incubator will be capable of housing up to 24 businesses. Anderson said the incubator will offer low-rent space, secretarial assistance, conference room, telephone and computer equipment, and access to an electronic business library.

The incubator will also offer its tenants technical assistance through the East Tennessee State University Small Business Development Center, as well as business counseling through the Service Corps Of Retired Executives (SCORE).

Start-up businesses can also get financing help through the incubator. For instance, Anderson said he can connect businesses with financing opportunities through the First Tennessee Economic Development Loan Fund.

Anderson said he's looking for non-retail business start-ups, normally in their first year of operation with good credit histories.

Tenants will be entrepreneurs with marketable ideas, or newly organized for-profit technology related businesses, assembly, or light manufacturing companies.

Anderson said that 80 percent of new businesses in this country fail, but 87 percent of those that graduate from incubators succeed. Those statistics show the need for incubators and the benefits they can provide.

"We plan on having a tremendous effect on the economy,'' Anderson said.

The incubator is scheduled to open in June, but inclement weather delayed construction through the winter. Anderson said he's hoping the facility will still open on time.

The incubator is being constructed on Army property along West Stone Drive. A building dating back to World War II was razed to make way for the center, and a security fence was rerouted to allow for access to the site from Stone Drive.

Anderson said the business incubator is the result of a partnership among BAE Systems, the city of Kingsport, Hawkins County, the U.S. Economic Development Administration, the Tennessee Department of Economic & Community Development, and the U.S. Army Armament Retooling & Manufacturing Support Program.

The entire project, including the building demolition, site preparation work, and construction of the incubator, is costing $910,000. The U.S. Economic Development Administration footed $546,000 of the bill, while the Armament Retooling & Manufacturing Support Program chipped in $200,000. The Tennessee Infrastructure Improvement Program contributed $160,000, and Kingsport and Hawkins County each gave $60,000 to the project. And the U.S. Army is leasing the land to the Holston Business Development Group for $20 for 20 years.
Anderson said his goal is to reach 100 percent capacity at the incubator by the end of 2004.

"That is my goal, to get to 100 percent and to keep it at 100 percent and keep a constant turnover,'' he said.

"Our goal is for a business moving into our space to be able to put itself in a position to move out into its own facility in at least three years. So if I'm doing my job and everything goes according to plan, the incubator is going to be a continuous revolving door with a steady stream of hopeful entrepreneurs moving in and successful businesses moving out into their own space,'' Anderson said.

He said businesses that graduate from the incubator will continue to receive help if they want it.

And businesses don't have to be incubator tenants to get help through the center. Anderson said any local company can contact him, and he'll connect them with professionals who can provide help, whether it's related to financing, business counseling, or other issues.

"We want to be here for businesses. We're marketing to people who want to create jobs. So we want to help them all we can," Anderson said.