All this comes at a cost, and the incubation center management needs to generate to resources for the same
Advantages of business incubation
1) business and technical assistance
2) affordable/flexible lease space
3) a network of relationships with other business owners
4) ability to adjust business model to market conditions
5) financial assistance and advice
6) preservation of working capital
Disadvantages of business incubation
1) the application process can be rigorous and competitive
2) an applicant is required to submit a detailed business plan and disclose all business activities
3) many incubators require a time commitment which may include trainings and workshops for which cost is required
4) incubator works like your boss
Virtual incubators
Virtual incubators can be defined as a catalyst for socio-economic development, providing a process for developing early stage ideas into viable ventures
Business incubators offers formal and informal learning opportunities and connect entrepreneurs to an ecosystem of related services
Virtual incubators are still getting defined in a fast-changing world, they have a potential of disrupting the traditional business incubation model
Types of business incubators
1) virtual business incubator
2) kitchen incubator
3) public incubator
4) seed accelerator
5) start-up studio
6) venture builder
7) medical incubator
Incubation process
1) eligibility
2) admission process
3) intellectual property
4) loan
5) infrastructure
6) common infrastructure
7) other services
8) periodic assessment
9) information submission
10) consideration
11) tenure in business incubation
12) exit
13) conflicts of interests and confidentiality of information
14) disclaimer
15) agreements
Key factors affecting business incubation policy
1) objectives for business incubation and service mix
2) wider business environment
3) funding strategies and sustainability
4) ownership and management
5) monitoring and appraisal
Business incubation programme – objectives for external perspective
1) creation of entrepreneurship in transition economies
2) exports/internationalization
3) economic development
4) the formation of productive clusters/arrangements
5) university – company relationship
6) diversification of local economies
7) creation of local value added jobs & services
8) building / acceleration of local industry growth
9) facilitating technology transfer
10) retaining firms in community
11) revitalization distressed neibhourhood
12) providing opportunities for national immigrants and national graduation abroad
Business incubation programme – objectives of internal perspective
1) creation of innovative and sustainable start-up companies, support their growth and development
2) property / real estate development
3) revenue and benefits generation for sponser
4) development of innovation in existing SMEs
5) development of non-profit making companies (third sector)
6) specialized business services to existing SMEs and Startups
7) foster entrepreneurial climate and sprit
8) technology commercialization
9) encourage and support minority or women entrepreneurship
10) identification of potential spin-ins or spin-outs
11) moving people from welfare to work
12) research and development
13) opportunity for risk capital
14) marketing and research investments
Stages of creativity
1) preparation
2) incubation
3) illumination
4) verification
Incubation as an important component in the creative process
