BUS604: Innovation and Sustainability

Background

Promálaga Urban Incubators are managed by Promálaga, the innovation agency of the city of Málaga. Promálaga's goals are to generate local economic development and innovation as well as social inclusion. As part of these goals, Promálaga designed an incubator to cater to the subsistence entrepreneurs (as opposed to high-innovative or tech entrepreneurs, who tend to be opportunistic) in new city developments with low-income populations. The goal of this new incubator concept was to develop business opportunities for the local population while developing the social tissue of the new developments, reducing criminality, and increasing the livelihoods of the neighborhoods.

In Essence

Promálaga Urban Incubators are placed in newly created neighborhoods specifically to speed up the opening of the type of small retail businesses that help develop the social fabric of a neighborhood and the development of organic communities (for example, grocery stores, bakeries, cleaners, neighborhood bars or cafés, hardware stores, and so on). Promálaga Urban Incubators provide entrepreneurs with ready-to-use, street-level co- mmercial spaces, varying in size from 15 to 25 square meters; each space includes the business license and utilities. The incubators also provide mentoring and advice to the business founders. Promálaga Urban Incubators are based in three locations. 

Impact

Promálaga Urban Incubators have a clear urban impact: They catalyze the creation of the social tissue of new development neighborhoods. These spaces accelerate the development of basic-needs retail businesses in new development areas, compared to the organic creation of the business retail fabric. The incubator fosters entrepreneurship in low-income populations; it provides mentorship and training to new business owners while their business is in operation and offers social inclusion and business opportunities. Promálaga Urban Incubators result in the faster creation of social tissue in new development areas, increasing the livability of new areas and anchoring them as neighborhoods.

In Practice

Project in Focus

Promálaga Urban Incubators are in several locations. The following list shows the type of small businesses incubated in two Promálaga Urban Incubator locations.