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Consultant: Hernando County has incubator potential but needs a long‑term champion and funding
Summary
A consultant told the Hernando County Port Authority an incubator could serve diverse small businesses and growth‑oriented firms but stressed the need for a committed sponsor, sustainable funding and experienced management; staff will use the study for potential federal EDA grant applications.
Mark Long, a consultant with Salus Business Advisers, told the Hernando County Port Authority on Tuesday that Hernando County "has potential" for a business incubator but that long‑term leadership and funding are critical to success.
Long said an incubator is a program that coordinates services such as mentoring, access to capital and training — not merely a building — and recommended a mixed‑use facility of about 15,000 to 20,000 square feet with programming focused on growth‑oriented ventures. "You want growth businesses in there," Long said.
Long described common challenges: no centralized champion to lead the effort, no committed operating funding, and a need for staff with entrepreneurial development experience. He estimated annual operating costs for a 15,000 sq ft incubator at roughly $600,000, covering programs, personnel and maintenance, and said many incubators require some subsidy for several years before reaching break‑even.
Commissioners questioned whether local government can take equity stakes in incubated firms. Long cautioned that direct public ownership of private enterprise equity is typically not legal or standard practice; he described alternatives such as conditional agreements or small seed programs used elsewhere to encourage firms to stay local.
John Walsh, Hernando County’s economic development manager, and Valerie Pianta, Economic Development Director, said the feasibility report is EDA‑compliant, which will support applications if the board pursues federal Economic Development Administration grants for capital expenses. Pianta said staff will use the study and further stakeholder work to build a business case.
The consultant urged the board to select a champion within three months, build a funding model and begin community engagement with partners such as SCORE and the Small Business Development Center. Long offered to share detailed cost breakdowns and his data with county staff.
The board had extensive questions about who benefits, how to screen entrepreneurs and whether incubators support both small non‑technical businesses and lab/manufacturing firms. Commissioners emphasized that programs should provide honest assessments for founders and be transparent about expected returns and public costs.
Next steps: staff will retain the feasibility study as a tool for grant application and project planning and will brief the board on potential funding strategies and governance options.
