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Models of Business Incubation  By S. Aravazhi Deputy Manager Agri-Business Incubator
Types of Incubators For profit <ul><ul><li>Strong financial support to tenants </li></ul></ul><ul><ul><li>Rigorous screeni...
Specific Features of  Technology Business Incubators Generally linked to technical universities Links Established within a...
CHARACTERISTICS OF INCUBATION MODELS BASED ON THE SPONSORS Technology related to sponsor’s focus New and emerging technolo...
PRIMARY FACTORS AFFECTING BUSINESS INCUBATION <ul><li>NATIONAL INNOVATION SYSTEM </li></ul><ul><li>GOVERNMENT SUPPORT FOR ...
Technology business incubators are dynamic instruments of regional economic development Technology Incubation System Every...
TYPES OF INSTITUTIONS PROMOTING BUSINESS INCUBATORS-INDIA BUSINESS INCUBATORS NON GOVERNMENTAL ORGANISATIONS 2 FINANCIAL I...
TECHNOLOGY FOCUS IN BUSINESS INCUBATORS-NSTEDB PROMOTED
Operational Models <ul><li>BRICKS AND MORTAR (BAM) </li></ul><ul><li>VIRTUAL, PORTAL OR WITHOUT WALLS </li></ul><ul><li>TH...
BRICKS AND MORTAR (BAM) <ul><li>It represents the historical model of business incubation, which focuses on physical facil...
VIRTUAL, PORTAL OR WITHOUT WALLS <ul><li>Virtual incubator is described as an organization which is set up on the Internet...
HUB / VENTURE INCUBATOR <ul><li>Many of these incubators have come on board in the past year. Hubs combine the strengths f...
EGGUBATOR” <ul><li>It has an orbital structure, in that it has a strong core in the center that ensures good vertical info...
Examples -Incubator Models in India <ul><li>STEP </li></ul><ul><li>Science and Technology Entrepreneurs Park, Initially St...
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Aravazhi models of-bussiness_incubation

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  • Mr Juan Miguel Luz, President, International Institute of Rural Reconstruction, guests and dear friends, I thank the International Institute of Rural Reconstruction for giving me this opportunity to speak on “ Making technology pay off for rural enterprises: Managing the human resource requirements for enterprise development in rural areas’. This presentation will be illustrating how the Institute I head, the International Crops Research Institute for the Semi-Arid Tropics, goes about empowering the rural poor with its wide array of technologies that facilitate rural enterprises.
  • TBIs are generally linked to technical universities and have access to their expertise and other knowledge resources. They are often established within a technology park or some other source/s of technological expertise and support. TBIs require pro-active management and mentoring staff with specific expertise related to development of technology-growth businesses. It would include knowledge of technological market developments, proficiency in intellectual property rights and information technology applications, and familiarity with practices of risk finance rising for technology-based ventures. Finally, clients of TBIs may require some specific requirements or equipment such as high speed and/or capacity computing or telecom equipment, rapid prototyping machines, or testing equipment.
  • I have to make conclusions.  Innovation Centers are dynamic instruments of regional economy promotion. They have to adapt their activities to new conditions every time.  Every Innovation Center is an unique entity in dependence from their regional framework and potentials for entrepreneurial activities. But  the technology incubation system  cannot replace entrepreneurial initiative and market potentials for enterprises on one hand. It can on the other hand  create the best frame conditions for entrepreneurship and  can help to create a positive climate and practicable frames for founding new enterprises. National Organizations, like 
  • Transcript of "Aravazhi models of-bussiness_incubation"

    1. 1. Models of Business Incubation By S. Aravazhi Deputy Manager Agri-Business Incubator
    2. 2. Types of Incubators For profit <ul><ul><li>Strong financial support to tenants </li></ul></ul><ul><ul><li>Rigorous screening </li></ul></ul><ul><ul><li>Large equity share </li></ul></ul>Not for profit <ul><ul><li>Moderate financial support to tenants </li></ul></ul><ul><ul><li>Open entry or simple screening </li></ul></ul><ul><ul><li>No or small equity share </li></ul></ul>
    3. 3. Specific Features of Technology Business Incubators Generally linked to technical universities Links Established within a technology park or close to other sources of technological support Location May require specific technical infrastructure and a network of service providers Services Management & mentoring staff require specific expertise in dev’t of technology-led businesses Staff
    4. 4. CHARACTERISTICS OF INCUBATION MODELS BASED ON THE SPONSORS Technology related to sponsor’s focus New and emerging technologies Technology focus SMEs Industry Sector Develop new and complementary technologies Capitalize on investments Technology transfer, commercialisation Local economic growth Objectives Incubator discretion Readiness for a liquidity event Visibility of Business Visibility of Business Graduating Promising technology Promising technology ( well developed) Promising idea or technology Promising idea or technology Entry criteria Corporate Institutional Advisory Advisory Governance Control or strong interest maintained None None or informal None or casual Relationship after graduation Mentoring Capital Rental space, Shared services, access to knowledge Rental space, Shared services Services Profit Profit Non-profit Non-Profit Profit Orientation INDUSTRY SPONSORED FI /VC//ANGEL SPONSORED INSTITUTION BASED PUBLIC- PRIVATE CHARACTERISTICS
    5. 5. PRIMARY FACTORS AFFECTING BUSINESS INCUBATION <ul><li>NATIONAL INNOVATION SYSTEM </li></ul><ul><li>GOVERNMENT SUPPORT FOR INDUSTRIALISATION </li></ul><ul><li>VENTURE FINANCE </li></ul><ul><li>ACCESS TO SKILL AND COMPETENCIES </li></ul>
    6. 6. Technology business incubators are dynamic instruments of regional economic development Technology Incubation System Every technology incubator center is an unique entity replace entrepreneurial initiative and markets create better conditions for entrepreneurship   What Business Incubators Can and Cannot Do Can not: Can:
    7. 7. TYPES OF INSTITUTIONS PROMOTING BUSINESS INCUBATORS-INDIA BUSINESS INCUBATORS NON GOVERNMENTAL ORGANISATIONS 2 FINANCIAL INST 2 GOVERNMENTS 96 INDUSTRY 3 TECHNICAL INST 7
    8. 8. TECHNOLOGY FOCUS IN BUSINESS INCUBATORS-NSTEDB PROMOTED
    9. 9. Operational Models <ul><li>BRICKS AND MORTAR (BAM) </li></ul><ul><li>VIRTUAL, PORTAL OR WITHOUT WALLS </li></ul><ul><li>THE HUB / VENTURE INCUBATOR </li></ul><ul><li>EGGUBATOR </li></ul>
    10. 10. BRICKS AND MORTAR (BAM) <ul><li>It represents the historical model of business incubation, which focuses on physical facilities, office support and limited on-site services </li></ul><ul><li>It has a nuclear structure in that it is a facility providing very little alliances with external entities. </li></ul><ul><li>The incubator provides a very limited amount of services, which may include a receptionist, a telephone, a photocopier and the likes. </li></ul><ul><li>It is unlikely that considerable management expertise is available, but one individual may be there to provide limited coaching and direction </li></ul>
    11. 11. VIRTUAL, PORTAL OR WITHOUT WALLS <ul><li>Virtual incubator is described as an organization which is set up on the Internet and which provides a wide data bank and information, with the possibility of stimulating new business. </li></ul><ul><li>They connect companies, customers, suppliers, partners and the operating management of the virtual incubator with each other through the Internet, electronic data interchange, videoconferences, etc. </li></ul><ul><li>Easy access to a wide range of services, no administrative costs associated with physical facilities, and ease in seeking associates and serving clients, globally </li></ul><ul><li>Lack of human interaction that delimits its clientele, since many seek personalized humanized services, in addition to the electronic medium. </li></ul><ul><li>Virtual incubators can be classified into Venture Incubators, Venture Accelerators, Venture Portals and Venture Networks. Of these, only the Venture Incubator will usually offer physical space. </li></ul>
    12. 12. HUB / VENTURE INCUBATOR <ul><li>Many of these incubators have come on board in the past year. Hubs combine the strengths from both the BAM model and the portal model into a central office. </li></ul><ul><li>Specialized divisions within the incubator offer a good range of services. </li></ul><ul><li>A limited amount of funding is available to the incubatees. </li></ul><ul><li>Yet, the incubators network with the outside is underdeveloped, loose, informal and inconsistent.” </li></ul>
    13. 13. EGGUBATOR” <ul><li>It has an orbital structure, in that it has a strong core in the center that ensures good vertical information flow, and multi-layered orbits/affiliations that allow high quality information circulation both horizontally and multi-directionally, across the layers. </li></ul><ul><li>It offers a “total” range of services; its devoted alliances and partnerships represent a perfect entrepreneurial network where access to a needed service is offered at any time. These alliances and partnerships also have internal sources of funding built into the system. </li></ul><ul><li>An attempt at a visual representation of the incubator model that is most likely to survive the tribulations of time shows the yoke of the “Eggubator” as the incubator proper, with its Board of Directors. It is, in essence, the parent company, the service provider, the source of networking and support, the cradle, and the hatchery.” </li></ul>
    14. 14. Examples -Incubator Models in India <ul><li>STEP </li></ul><ul><li>Science and Technology Entrepreneurs Park, Initially Started with focus on Entrepreneurship Development among Technical Graduates, some of them evolved into TBIs –Public support </li></ul><ul><li>TBI </li></ul><ul><li>Technology Business Incubator with focus on developing start-up enterprises in Emerging areas of Technology- Public and Private </li></ul><ul><li>STPI </li></ul><ul><li>Software Technology Parks of India, initially started to promote software development companies, also entered into Technology Business Incubation </li></ul><ul><li>in ICT areas-Public Support </li></ul>
    15. 15. THANK YOU
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