Town hopes incubator will foster new business

For years, many UNC students looking to start their own businesses have had to venture outside of Chapel Hill.

But with the creation of the town’s first business incubator, Chapel Hill is hoping to see more businesses like Chapel Hill-grown Sweeps and A Ban Against Neglect originate in the town.

The new incubator joins similar initiatives in Durham.

“We have all these incredible entrepreneurship opportunities like Carolina Challenge and the entrepreneurial club at UNC,” said Jim Kitchen, who teaches entrepreneurship at UNC’s Kenan-Flagler Business School. “But we have no central leverage where students can go start their ventures.”

And that’s where the business incubator will come in.

The incubator will take over the 3 Birds Marketing office at 321 W. Rosemary St. in mid-November.

It will offer desk and office space, mentoring services, and weekly programs to start-up businesses and entrepreneurs.

Nicholas Thomas, a UNC graduate and founder of FilmLab, will use the Chapel Hill business incubator.

Thomas said FilmLab, an online media company, is transitioning from an idea to a business.

He said he hopes participation in the incubator will globalize his business and get it off the ground.

“There’s advisers, professors, mentors, a large labor pool and a great UNC and Chapel Hill network with people that want to see you succeed.”

“I can learn not only from my mistakes but also from theirs.”

Kitchen said the Chapel Hill incubator will house mostly — though not exclusively — UNC students and recent alumni. He will be a mentor at the incubator.

“We’re getting an incredible demand for the incubator space even though we’re still in planning stages and have not done any marketing,” he said. “Many ventures have expressed interest so far.”

Judith Cone — special assistant to the chancellor for innovation & entrepreneurship at the University — said incubators are needed where there are clusters of entrepreneurs working to build the next great thing.

“I think that having something close to the campus is very needed,” she said.

“Having somewhere students can walk to is convenient and makes a great deal of sense.”

American Underground, a business incubator in Durham, has provided similar services to more than 30 companies since it opened in 2010.

American Underground is primarily technology-oriented, while Chapel Hill’s incubator will encompass a broader range of ventures.

“Entrepreneurs need help building networks, connecting markets and opportunities, and they need mentoring,” said Adam Klein, chief strategist at American Underground.

“Those are all things entrepreneurs can’t always find on their own, so incubators help the process.”

Kitchen said the Chapel Hill incubator has a similar priority.

“Our focus is to connect entrepreneurs with a very robust network to help nurture their business ideas,” he said.

Klein doesn’t see the Chapel Hill incubator as a competitor but as another way to spur economic growth of North Carolina.

“All research points to small, fast-growing companies being the future of North Carolina,” he said. “Supporting early-stage companies is vital.”

Kitchen agreed. “This isn’t Chapel Hill versus Durham,” Kitchen said. “This is about expanding the entrepreneurial system.”

Contact the desk editor at city@dailytarheel.com.