The Stockton Enterprise Arcade: Incubate or Graduate?

Case Solution

Jill Tidmarsh
Ivey Publishing ()

In February 2016, the owner of a wool and yarn retail store at Enterprise Arcade, a non-profit retail incubator in StocktononTees, UK, had to meet with the manager of the game room. The Enterprise Arcade is in a central and prominent location in a troubled city in North East England and was opened by the local council as part of a major renovation project. Their goal was to regenerate the area and support businesses and employment by providing small, market-driven sales areas for independent retailers to test their markets. After 14 months in the incubator, the owner of the wool and yarn business was supposed to move out, but her business models were still untested and she wanted to stay longer. The manager had to weigh the overall success of Enterprise Arcade against the successful sales and deals there. How should the business owner organize his priorities and prepare to negotiate with the manager? What should the manager advise you?

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