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Amid growing concerns over data collection and program effectiveness, two Republican legislators are calling for a comprehensive review of Oklahoma’s Small Business Incubator Program, which provides tax incentives to help startups grow and succeed.
Incubator Program Under Scrutiny
Representatives Chris Banning (R-Bixby) and Mike Lay (R-Jenks) are urging a closer evaluation of the state’s business incubator initiative, questioning whether it delivers measurable, long-term success for small businesses and if it’s being marketed effectively to potential participants.
The program, launched in 1988 under the Oklahoma Small Business Incubators Incentives Act, offers up to 10 years of state tax exemptions to qualifying startups.
These incubators typically provide office space, mentorship, and financial guidance to help entrepreneurs grow their ventures into self-sustaining operations.
Limited Data Clouds Impact Assessment
A 2024 report by the Oklahoma Department of Commerce identified 26 certified incubators across the state, supporting 152 small businesses and generating 374 full-time jobs, 112 part-time roles, and 43 internships. Yet, critics argue the tracking and reporting methods are insufficient to evaluate real success.
The 2023 Incentive Evaluation Commission reported that incubator tenants brought in $66.6 million in revenue and received $3.3 million in tax breaks.
However, there is no centralized data on how many of the 780+ businesses that have graduated since 1988 are still in operation.
Ray Little, Director of Entrepreneurship and Small Business at the Department of Commerce, emphasized that incubators are designed to support businesses that have outgrown home-based operations but are not yet ready for full commercial space. He highlighted the importance of mentorship and financial guidance as critical elements of the program.
Calls for Better Analytics and Marketing
Rep. Banning suggested that the state adopt a more structured data-reporting model, similar to a census, to better assess program outcomes.
“If you’re going to accept assistance, you should report back how it helped,” he said.
Rep. Lay echoed those concerns, saying the state needs clearer metrics to determine success and pointed to a lack of public awareness about the program’s availability.
Brad Rickelman, Secretary of the Oklahoma Business Incubator Association, acknowledged that data collection challenges make it difficult to assess overall impact.
He noted that incubators offer critical support during the most vulnerable phases of a startup’s journey and serve a broader economic development purpose—even if difficult to quantify.
Success Stories vs. Statistical Gaps
While anecdotal successes exist, Janet Schwabe, Manager of the Pioneer Technology Center in Ponca City, noted that current data is often incomplete or inconsistent, as it relies on self-reporting by incubator managers.
“There are great stories about our tenants, but not enough quantitative data to measure impact,” she said.
Schwabe also highlighted the need to rebrand the term “incubator”, saying many people don’t understand what it means. Plans are underway to build a new facility for larger manufacturers and potentially rename the center to improve outreach.
National Data Highlights Incubator Potential
According to the National Business Innovation Association, approximately 87% of businesses that graduate from incubators remain operational after five years, demonstrating the potential effectiveness of such programs when supported and tracked properly.
Despite this, Oklahoma’s program lacks clear visibility and consistent follow-up tracking, especially in rural or underserved areas, where incubators could play a vital role in attracting and retaining entrepreneurial talent.
Oklahoma’s Small Business Incubator Program remains a valuable resource for nurturing startup growth, but lawmakers and experts agree it needs improvement.
From enhancing data collection and evaluating outcomes, to increasing public awareness and modernizing its image, efforts are now underway to ensure the program achieves its full potential.
As discussions continue, the goal is to align the program’s purpose with transparent success metrics and long-term economic impact.