Investment, Industry and Information Technology Minister Austin Gatt yesterday announced that the government, with the help of the European Social Fund, will be investing about Lm400,000 to expand the Corradino Business Incubation Centre (KBIC).

KBIC was established in 2001 and it has since been a huge success, with an 85 per cent occupancy rate, said Dr Gatt.

Last year alone, three companies that made use of KBIC’s services employed about 200 people. About four companies were on the waiting list to form part of the incubation centre. The tendering process for the expansion of the centre is expected to be completed by the end of 2008, while the construction of the new part of the centre will take another three years or so.

“We have decided to expand KBIC from a centre that houses 23 units, to one that will cover a larger space, housing 40 units,” the minister said.

KBIC is run by Malta Enterprise and is intended to target industrial groups from the sectors of information and communication technology, mechanical and electrical engineering, renewable energy resources, biotechnology, as well as other innovative projects, which are more advanced than those prevailing in their respective industry, in terms of technology, know-how and skills.

The aim of the business incubation centre is to improve the rate and chance of growth of entrepreneurs’ ventures. Incubators act as an economic catalyst, forming an important part of a country’s support infrastructure, being instrumental in identifying, encouraging and supporting people to start their own businesses with the development of innovative and high value-added products.

In essence, incubators play a nurturing role in assisting new and emerging businesses to survive and grow during their vulnerable start-up period. Western countries developed the business incubation concept during the late 1970s and early 1980s.

Many new businesses fail in the conceptualisation of their idea and many others fail in their first few years of existence. An incubator offers a collaborative environment, ready access to advice and business developing services, educational and networking opportunities, as well as support which many experts attribute to the success of incubated companies.

Further information may be obtained at www.kbic.com.mt.