Business incubators

• A business incubator is an organization or program

that is designed to support the development and
growth of startup companies.
• They provide services such as management
training, mentorship, co-working space, networking
opportunities, access to funding, and much more.
• Business incubators are perceived to be the
What is a mainstay of economic development programs.

Business • They create value by combining the

entrepreneurial drive of startups with the resources
Incubator? generally available to new ventures.
• The people working for a business incubator
perform intensive research before supporting or
funding startups.
• The primary objectives of business incubators are
creating employment opportunities in the local
economy and commercializing technologies.
• The National Business Incubation Association
(NBIA) defined Business Incubators as a
Regional and National Development catalyst
tool.
 • Business Incubation is the name given to the
process that involves supporting the
development and growth of startups through the
provision of various resources and services.
• The goal of business incubation is to help
startups overcome the initial hurdles that come
What is with starting and growing a business.
Business • There are numerous startups working on
revolutionary ideas, but these ventures often
Incubation need assistance.
? • Business incubators provide this much-needed
support.

The goal of incubation in a nutshell is to

increase the success rate of emerging
startups and entities.
 1. Corporate Incubators
• Their objectives are to enhance
entrepreneurial skills and to help startups
keep up with other industries/competitors.

Types of • Corporate incubators target internal and

external projects related to the company’s
Business activities.

Incubators • Corporate incubators' most common

challenge is the conflict between top-level
executives and committees regarding
objectives and management-related
decisions.
 2. Local Economic Development Incubators
• They work on economic development by
supporting SMEs and specific groups for the
overall upliftment of society.

Types of • These groups include small

enterprises, handicraft-related businesses,
Business and locally-sourced companies.
Incubators 3. Private Investors' Incubators
• They assist high-potential businesses (such as
technology-intensive startups) and then reap
benefits by selling shares.
 4. Academic Incubators
• They offer new sources of finance while
supporting the entrepreneurial spirit and
focusing on civic responsibility.
• Academic incubators target external projects
and projects internal to academic institutions.
Types of 5. Venture Capital Incubators

Business • Venture capital firms have become a popular

topic in the business world lately.
Incubators • They see incubators as a way to generate
profits, and thus invest in new companies or
offer funding in exchange for a share or
ownership in the company.
• These firms may also provide management
teams with access to angel investors and
financial management as part of their
incubation package.
 6. Kitchen incubators
• Kitchen incubators provide a safe space for
entrepreneurs, chefs, and restaurateurs to
develop their ideas.
• They offer a commercial kitchen or kitchen
space where they can experiment with
Types of speciality foods, create new restaurant
Business concepts or even start a ghost kitchen/cloud
kitchen.
Incubators • Kitchen incubators are similar to other business
incubators as they support and guide the
development of "kitchens" from the initial
stages to the full launch.
• Throughout the process, they provide
mentorship, access to funding, and educational
opportunities.
 7. Social Incubators
• A social incubator is an organization that
fosters and supports individuals with
innovative ideas for businesses that can bring
Types of positive change in the world.
Business • These businesses could be non-profit
organizations or companies that aim to create
Incubators products or services that contribute to
environmental sustainability or social
progress in society.
 The process of business incubation typically involves several
stages:
1.Application: Startups apply to a business incubator
program by submitting an application and business plan.
Some incubators have selective application criteria, while
others may have a broader range of eligibility criteria.
2.Screening: The incubator reviews the application and
How business plan to determine if the startup is a good fit for
the program. The screening process may involve an
Business interview or presentation by the startup.
3.Incubation: Once accepted into the program, the
Incubation startup works with the incubator to develop and execute
its business plan. The incubator provides the startup with
Works access to resources, mentorship, and other support
services to help them achieve their goals.
4.Graduation: Once the startup has achieved its goals
and is ready to operate independently, it graduates from
the program. Graduation typically involves leaving the
incubator's physical space and resources but may still
involve ongoing mentorship and networking
opportunities.
 • They guide startups/ventures on how to compete with
established industry players.
• Business incubators help with the basics of business.
• They provide networking activities.
• They help startups save on operating costs.

Roles and •
•
Incubators provide marketing assistance.
Incubators help with market research.
Functions • They provide high-speed internet access.
•
of They create long-lasting jobs for new graduates, experienced
mid-career personnel, and veteran executives.
•
Business •
Incubators help with accounting/financial management.
They provide access to bank loans, loan funds, and guarantee

Incubators •
programs.
Incubators bring credibility to the company. This helps the
company receive loans and credit facilities from financial
institutions.
• Incubators help with presentation skills.
• They have a strong network of influential people who can connect
startups/ventures with established businesses and individuals.
 • They provide access to higher education resources.
• Incubators can tap into their networks of experienced
entrepreneurs and retired executives.
• They link companies with strategic partners.
• They provide access to angel investors and venture
Roles and capital.

Functions • Business incubators organize comprehensive business

training programs.
of • They act as advisory boards and mentors.
• They help in management team identification.
Business • They offer marketing and PR assistance to new
Incubators companies for brand establishment.
• They help with business etiquette.
• They provide technology commercialization
assistance.
• They help with regulatory compliance.
• They provide intellectual property management.
 • Industry-Specific Expertise: Some incubators offer specialized support
tailored to specific industries.
• Access to Research and Development Resources: Incubators offer
startups R&D facilities for research, prototyping, and testing without high
upfront costs.

Features • Government Liaison and Advocacy: Business incubators assist

startups with regulatory frameworks and foster government connections
to streamline processes and address challenges.

of • Global Market Expansion Support: Incubators help startups go global

by providing market insights and partnerships.
• Corporate Partnerships: Incubators partner with corporations to offer
Business •
startups resources, mentorship, and collaboration opportunities.
Focus on Sustainable Practices: Some business incubators prioritize

Incubator
eco and social responsibility. The role of the incubation center in this
context is crucial, as it plays a pivotal role in fostering a supportive
environment.

s • In-House Acceleration Programs: Some programs offer an accelerated

phase with intensive mentoring, resources, and a condensed timeline to
rapidly move startups towards scalability.
• Exit Strategy Support: Incubators can assist startups with exit
strategies like IPOs, mergers, or acquisitions for a smooth transition to the
next phase of growth.
• Market Intelligence Services: Startups can access market research,
trend analysis, and competitive intelligence.
• Incubator Alumni Network: A strong alumni network fosters
collaboration and mentorship among successful graduates of the
incubator program.