A 2009 study by Grant Thornton on the Economic Development Administration, U. S. Department of Commerce construction grant programs reviewed economic development data and concluded that..."Business Incubators are good for communities." The study showed that Business Incubators:

• Are designed as job generators, and produce 20 times more jobs than community infrastructure projects at a fraction of the cost - $144 to $216 per job versus an average of $2,000 to $4,611.
• Create sustainable businesses, with 87% of firms who graduate from business incubators remaining in business for the long-term.

In Fall 2008, a professional Lowcountry organization known as New Directions Network undertook the study of and subsequently reported on the feasibility of developing a Business Incubator to assist selected businesses in the Lowcountry to grow and become sustainable organizations. The study began in November 2008. The study report was presented in June 2009 and was finalized in August 2009.

The study recommended and the Lowcountry Small Business Hub membership accepted the creation of an incubator using a virtual format. The Virtual Business Incubator will focus on start-up and early stage businesses and operate as a component of the Hub. The Lowcountry Small Business Hub Board has moved forward on the design phase of the project and is ready to act on the Business Incubator Feasibility Study recommendations with the development of one or more pilot implementations.

The objectives of the Lowcountry Small Business Virtual Incubator are consistent with the Hub, to:

• Promote economic development within Beaufort, Colleton, Hampton and Jasper Counties.
• Foster a supportive, innovative and entrepreneurial climate for business start-ups.
• Reduce risks and mistakes that are common in business start-ups.
• Maximize the potential of clients to create and operate long-term sustainable and growing businesses that ultimately lead to increased employment.

The Virtual Business Incubator will initially launch as a pilot to test and perfect the concept, infrastructure and suite of services with 4 to 10 clients on a phased in basis. The Virtual Business Incubator will:

• Consider applicants who have a viable business plan or well-developed and viable business concept that demonstrates growth potential in one of the four covered counties. The Hub will assist in the development of solid plans when needed.
• Deliver the majority of its services through a virtual structure that includes a web-based portal, virtual meetings, and distance learning forums.
• Offer the following core services during the pilot:
  • Business training and consulting services
  • Assigned business mentors and volunteer experts/shadow board
  • Peer networking and group coaching
  • Networking forums with potential customers (of clients)
  • Access to Hub sponsored meeting space and office services (e.g. copy machines)
  • Access to a wide range of business resources and tools
  • Referral services to connect clients with suppliers for specific business needs

The Hub envisions the Lowcountry Virtual Business Incubator as a collaborative venture supported by a strong community of existing economic development organizations, local business and government leaders, academic institutions, and a large cadre of knowledgeable volunteers and advisors. Members of the Virtual Business Incubator Client Advisory Board have been recruited from the four Lowcountry counties, and very successful/talented business owners have already stepped forward and volunteered to become VBI Mentors.