Business incubator wikipedia

1. Business incubator
A business incubator is a company that helps new and startup
companies to develop by providing services such as management
training or office space.[1] The National Business Incubation
Association (NBIA) defines business incubators as a catalyst tool for
either regional or national economic development. NBIA categorizes
their members’ incubators by the following five incubator types:
academic institutions; non-profit development corporations; for-
profit property development ventures; venture capital firms, and
combination of the above.[2]
Business incubators differ from research and technology parks in
their dedication to startup and early-stage companies. Research and
technology parks, on the other hand, tend to be large-scale projects
that house everything from corporate, government or university labs to very small companies. Most research and
technology parks do not offer business assistance services, which are the hallmark of a business incubation program.
However, many research and technology parks house incubation programs.[3]
Incubators also differ from the U.S. Small Business Administration's Small Business Development Centers (and similar
business support programs) in that they serve only selected clients. SBDCs are required by law to offer general business
assistance to any company that contacts them for help. In addition, SBDCs work with any small business at any stage of
development, not only startup companies. Many business incubation programs partner with their local SBDC to create a
"one-stop shop" for entrepreneurial support.[4]
Within European Union countries there are different EU and state funded programs that offer support in form of
consulting, mentoring, prototype creation and other services and co-funding for them. TecHub is one of examples for IT
companies and ideas..
In India, the business incubators are promoted in a varied fashion: as Technology Business Incubators (TBI) and as
Startup Incubators -- the first deals with technology business (mostly, consultancy and promoting technology related
businesses) and the later deals with promoting startups (with more emphasis on establishing new companies, scaling the
businesses, prototyping, patenting, and so forth). The mission on creating specific innovations among the young minds of
researchers via. 101 specialized incubators has been boosted in various parts of India through AIM-India. For instance,
AIC-IIITKottayam [5], a Startup-based Incubator, specializes in IoT Cloud research jointly with world class incubators
from Germany, USA, Austria, and so forth.
History
Types of services
Employees at work in a business incubator in
Germany.
Contents

2. Types
Overview
The incubation process
Goals and sponsors
Incubator networks
List of business incubators
See also
References
External links
The formal concept of business incubation began in the USA in 1959 when Joseph L. Mancuso opened the Batavia
Industrial Center in a Batavia, New York, warehouse.[6] Incubation expanded in the U.S. in the 1980s and spread to the
UK and Europe through various related forms (e.g. innovation centres, pépinières d’entreprises, technopoles/science
parks).
The U.S.-based International Business Innovation Association estimates that there are about 7,000 incubators worldwide.
A study funded by the European Commission in 2002 identified around 900 incubation environments in Western
Europe.[7] As of October 2006, there were more than 1,400 incubators in North America, up from only 12 in 1980. Her
Majesty's Treasury identified around 25 incubation environments in the UK in 1997; by 2005, UKBI identified around 270
incubation environments across the country. In 2005 alone, North American incubation programs assisted more than
27,000 companies that provided employment for more than 100,000 workers and generated annual revenues of $17
billion.[8] In 2017, research group named Social Innovation Monitor (SIM) has identified 171 incubators in Italy where
almost 60% of them are in the North of Italy.[9] Moreover, big corporations are applying strategies of open innovation
through the creation of programme of corporate incubation. Some examples these programmes are: TIM #Wcap
Accelerator[10] and FoodForward[11] by Deloitte Italia.
Incubation activity has not been limited to developed countries; incubation environments are now being implemented in
developing countries and raising interest for financial support from organizations such as UNIDO and the World Bank.
Since startup companies lack many resources, experience and networks, incubators provide services which helps them get
through initial hurdles in starting up a business. These hurdles include space, funding, legal, accounting, computer
services and other prerequisites to running the business.
Among the most common incubator services are:[8]
Help with business basics
Networking activities
Marketing assistance
Market Research
High-speed Internet access
Help with accounting/financial management
History
Types of services
A strategic partnership is a relationship
between two commercial enterprises, usually
formalized by one or more business contracts. A
strategic partnership will usually fall short of a
legal partnership entity, agency, or corporate
affiliate relationship. Strategic partnerships can
take on various forms from shake hand

3. Access to bank loans, loan funds and guarantee programs
Help with presentation skills
Links to higher education resources
Links to strategic partners
Access to angel investors or venture capital
Comprehensive business training programs
Advisory boards and mentors
Management team identification
Help with business etiquette
Technology commercialization assistance
Help with regulatory compliance
Intellectual property management
There are a number of business incubators that have focused on particular industries or on a particular business model,
earning them their own name.
Virtual business incubator - online business incubator
Kitchen incubator - a business incubator focused on the food industry
Public incubator - a business incubator focused on the public good
Seed accelerator - a business incubator focused on early startups
Corporate accelerator - a program of a larger company that acts akin to a seed accelerator
Startup studio - a business incubator with interacting portfolio companies
Hybrid Incubator - A business incubator that combines virtual incubator with on-premise activities
Industry sectors intentionally supported by incubation programs[8]
Technology Creative industries Construction
Computer software eBusiness / eCommerce Arts
Services/professional Wireless technology Aerospace
Manufacturing Healthcare technology Kitchen/Food
Internet Advanced materials Retail
Biosciences/life sciences Defense/homeland security Fashion
Electronics/Microelectronics Energy/Power Wood/forestry
Telecommunications Environment/clean technologies Tourism
Computer hardware Logistics/Delivery Manpower
Medical devices Nanotechnology Media
More than half of all business incubation programs are "mixed-use" projects, meaning they work with clients from a
variety of industries. Technology incubators account for 39% of incubation programs.[8]
One example of a specialized type of incubator is a bioincubator. Bioincubators specialize in supporting life science-based
startup companies. Entrepreneurs with feasible projects in life sciences are selected and admitted for these programs.
Types

4. Unlike many business assistance programs, business incubators do not serve any and all companies. Entrepreneurs who
wish to enter a business incubation program must apply for admission. Acceptance criteria vary from program to
program, but in general only those with feasible business ideas and a workable business plan are admitted.[12] It is this
factor that makes it difficult to compare the success rates of incubated companies against general business survival
statistics.[13]
Although most incubators offer their clients office space and shared administrative services, the heart of a true business
incubation program are the services it provides to startup companies. More than half of incubation programs surveyed by
the National Business Incubation Association[14] in 2006 reported that they also served affiliate or virtual clients.[8]
These companies do not reside in the incubator facility. Affiliate clients may be home-based businesses or early-stage
companies that have their own premises but can benefit from incubator services. Virtual clients may be too remote from
an incubation facility to participate on site, and so receive counseling and other assistance electronically.
The amount of time a company spends in an incubation program can vary widely depending on a number of factors,
including the type of business and the entrepreneur's level of business expertise. Life science and other firms with long
research and development cycles require more time in an incubation program than manufacturing or service companies
that can immediately produce and bring a product or service to market. On average, incubator clients spend 33 months in
a program.[8] Many incubation programs set graduation requirements by development benchmarks, such as company
revenues or staffing levels, rather than time.
1)Eligibility 2)Admission process 3)Intellectual property 4)Seed loan 5)Infrastructure 6)Common Infrastructure 7)Other
services 8)Periodic assessment 9)Information Submission 10)Consideration 11)Tenure in BI 12)Exit 13)Conflicts of
interests and confidentiality of information 14)Disclaimer 15)Agreements
Business incubation has been identified as a means of meeting a variety of economic and socioeconomic policy needs,
which may include job creation, fostering a community's entrepreneurial climate, technology commercialization,
diversifying local economies, building or accelerating growth of local industry clusters, business creation and retention,
encouraging minority entrepreneurship, identifying potential spin-in or spin-out business opportunities, or community
revitalization.[8]
About one-third of business incubation programs are sponsored by economic development organizations. Government
entities (such as cities or counties) account for 21% of program sponsors. Another 20% are sponsored by academic
institutions, including two- and four-year colleges, universities, and technical colleges.[8] In many countries, incubation
programs are funded by regional or national governments as part of an overall economic development strategy. In the
United States, however, most incubation programs are independent, community-based and resourced projects. The U.S.
Economic Development Administration is a frequent source of funds for developing incubation programs, but once a
Overview
The incubation process
Goals and sponsors

5. program is open and operational it typically receives no federal funding; few states offer centralized incubator funding.
Rents and/or client fees account for 59% of incubator revenues, followed by service contracts or grants (18%) and cash
operating subsidies (15%).[8]
As part of a major effort to address the ongoing economic crisis of the US, legislation was introduced to "reconstitute
Project Socrates". The updated version of Socrates supports incubators by enabling users with technology-based facts
about the marketplace, competitor maneuvers, potential partners, and technology paths to achieve competitive advantage.
Michael Sekora, the original creator and director of Socrates says that a key purpose of Socrates is to assist government
economic planners in addressing the economic and socioeconomic issues (see above) with unprecedented speed,
efficiency and agility.[15]
Many for-profit or "private" incubation programs were launched in the late 1990s by investors and other for-profit
operators seeking to hatch businesses quickly and bring in big payoffs. At the time, NBIA estimated that nearly 30% of all
incubation programs were for-profit ventures. In the wake of the dot-com bust, however, many of those programs closed.
In NBIA's 2002 State of the Business Incubation survey, only 16% of responding incubators were for-profit programs. By
the 2006 SOI, just 6% of respondents were for-profit.[8]
Although some incubation programs (regardless of nonprofit or for-profit status) take equity in client companies, most do
not. Only 25% of incubation programs report that they take equity in some or all of their clients.[8]
Incubators often aggregate themselves into networks which are used to share good practices and new methodologies.
Europe's European Business and Innovation Centre Network ("EBN")[16] association federates more than 250 European
Business and Innovation Centres (EU|BICs) throughout Europe. France has its own national network of technopoles, pre-
incubators, and EU|BICs, called RETIS Innovation. This network focuses on internationalizing startups.
Of 1000 incubators across Europe, 500 are situated in Germany. Many of them are organized federally within the ADT
(Arbeitsgemeinschaft Deutscher Innovations-, Technologie-, und Gründerzentren e.V.).[17]
Business Support office - similar to a business incubator
Science park - to support innovation on a university campus
1. "What is business incubator?" (http://www.businessdictionary.com/definition/business-incubator.html).
2. Rubin, Tzameret H.; Aas, Tor Helge; Stead, Andrew (2015-07-01). "Knowledge flow in Technological Business
Incubators: Evidence from Australia and Israel" (http://www.sciencedirect.com/science/article/pii/S016649721500013
9). Technovation. 41–42: 11–24. doi:10.1016/j.technovation.2015.03.002 (https://doi.org/10.1016%2Fj.technovation.2
015.03.002).
3. Guadix, José (2016). "Success variables in science and technology parks". Journal of Business Research.
Incubator networks
List of business incubators
See also
References

6. 4. White, Doug and Polly (13 July 2017). "No One Can Match Silicon Valley, But Other Cities Benefit From Fostering
Startups" (https://www.entrepreneur.com/article/296808). entrepreneur.com. Retrieved 20 March 2018.
5. "IoT Cloud Solutions for Societal Applications -- A Specific Incubator of India" (http://icentre.iiitkottayam.ac.in/).
6. "Take-off your Startup with Business Incubator" (http://www.billbooks.com/blog/take-off-your-startup-with-business-inc
ubator/).
7. Centre for Strategy and Evaluation Services, "Benchmarking of Business Incubators." Brussels: European
Commission Enterprise Directorate General, 2002.
8. Linda Knopp (2007). "2006 State of the Business Incubation Industry" (https://www.nbia.org/resource_library/review_
archive/0807_02a.php). Athens, Ohio: National Business Incubation Association.
9. "Social Innovation Monitor" (https://www.socialinnovationmonitor.com/). www.socialinnovationmonitor.com. Retrieved
2019-03-24.
10. "TIM #WCAP" (http://www.wcap.tim.it/en). www.wcap.tim.it. Retrieved 2019-03-24.
11. "FoodForward | Deloitte Italy | Innovation" (https://www2.deloitte.com/it/it/pages/strategy/articles/foodforward---deloitt
e-italy---innovation.html). Deloitte Italia (in Italian). Retrieved 2019-03-24.
12. Bryan, Kevin A.; Tilcsik, András; Zhu, Brooklynn (2017). "Which Entrepreneurs are Coachable and Why?" (https://ww
w.aeaweb.org/articles?id=10.1257/aer.p20171010). American Economic Review. 107 (5): 312–316.
doi:10.1257/aer.p20171010 (https://doi.org/10.1257%2Faer.p20171010). ISSN 0002-8282 (https://www.worldcat.org/i
ssn/0002-8282).
13. Meredith Erlewine, "Comparing Stats on Firm Survival." In Measuring Your Business Incubator's Economic Impact: A
Toolkit. Athens, Ohio: National Business Incubation Association, 2007.
14. "About Us" (http://www.nbia.org/about_nbia/).
15. Sekora, Michael (28 Jan 2010). Mastering the Art of Competition. New York, New York: Jossey Bass. ISBN 978-0-
470-50071-2.
16. "EBN - innovation network" (http://ebn.eu).
17. Asish Das (26 April 2016). "How To Win Government Contracts For Your Startup" (http://www.thestartupjournal.com/
win-government-contracts-startup/). The Startup Journal. Retrieved 30 April 2016.

10. ‹The template Curlie is being considered for deletion.› Business incubator (https://curlie.org/Business/Small_Business/Start_Up/I
ncubators) at Curlie
Forbes ranking of incubators (https://www.forbes.com/sites/tomiogeron/2012/04/30/top-tech-incubators-as-ranked-by-
forbes-y-combinator-tops-with-7-billion-in-value/)
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