A quarter-century chapter in local history is being closed with the changing mission of the Columbus Enterprise Development Corp.
In 1986 the organization developed a business incubator that has given wings to dozens of new business ventures that otherwise might not have gotten beyond the idea stage. CEDC will continue into the future but with a model that emphasizes other incentives.
There were elements in the original vision for the facility at Columbus Municipal Airport, but one of the most critical in the minds of cost-cutting entrepreneurs was the availability of operating space at rental rates made for tight budgets.
Since the nonprofit group had been able to lease the airport facility from the Columbus Aviation Commission for a $1 annual fee, tenants were charged a starting bargain rate of $5 per square foot. That number usually increased by 50 cents a year from that point.
As it grew, the CEDC added other elements to help starting businesses get off the ground and eventually move out into a more competitive arena. Those measures included entrepreneurial networks, connections with potential customers and clients, and mentoring programs.
The incubator has been home to 12 companies on an annual basis, although there were some occasions when there were as many as 17 different clients operating in the same location.
The success of the program speaks for itself. As of this year, 110 companies had launched their operations at CEDC and according to the most recent survey, approximately 86 percent of them are still operating. In that the national average for failure of start-up small businesses in communities without incubator programs is 75 percent, that statistic is nothing short of phenomenal.
Although the availability of low-priced operating space certainly gave these start-up businesses an advantage, that benefit has to be judged along with all of the other opportunities CEDC has provided.
The shutdown of the airport facility is occasioned in part by the fact that CEDC was forced to dramatically increase the rental fees. New Federal Aviation Administration standards require that the airport charge a prevailing rate for any property it leases.
And, although space is still important, advances in technology have meant many businesses can make do with far less.
In one sense, the CEDC can be seen as reinventing itself through this transition. Regardless of what model will be guiding business development into the future, the CEDC has certainly demonstrated that an environment conducive to small business development benefits the entire community.