Business incubators help startup companies develop by providing services like management training, office space, and access to financing. The first business incubator was established in 1959 in New York. Incubators can be virtual, focused on industries like food or healthcare, or run by larger companies or studios developing multiple companies. They progress from providing physical space to offering networking and support services. Indian incubators include CIIE IIMA, IAN, SINE, and STEP, which help entrepreneurs with basics, networking, marketing, research, and accessing loans.

1. BUSINESS INCUBATORS
ROLL NO. – 19163015
SUBJECT - ENTERPRENUERSHIP
SUBMITTED BY – KAJAL DAHIYA
SUBMITTED TO – MS. MEGHA SAINI

2. BUSINESS INCUBATORS
 Business incubator is an organization
that helps startup companies and
individual entrepreneurs to develop
their businesses by providing a
full-scale range of services
starting with management
training and office space and ending
with venture capital financing.

3. HISTORY OF BUSINESS
INCUBATORS -
 The formal concept of business incubation began in the
US in 1959 when Joseph L. Mancuso opened the
Batavia Industrial Center in a Batavia, New York,
warehouse. Incubation expanded in the U.S. in the
1980s and spread to the UK and Europe through
various related forms . The U.S.-based International
Business Innovation Association estimates that there
are about 7,000 incubators worldwide.

4. DEFINITIONS OF
BUSINESS INCUBATORS
 The National Business Incubation Association
(NBIA) defines business incubators as a catalyst
tool for either regional ornational economic
development.
 According to Allen and Rahman, “The universal
purpose of a business incubator is toincrease the
chances of a firm surviving its formative years, but
the business incubator also adds value by
maximizing the firms’ growth potential

5. TYPES OF BUSINESS
INCUBATORS -
 (i) Virtual Business Incubators:
 These are also known as online business
incubators.
 Business incubators began in the 1950s and
took off in the late 1990s as support for
startup companies who need advice and
venture capital to get their ideas off the
ground. As the dot-com bubble burst, many
high-tech business incubators did so too. Now
the model of a business incubator is
changing.

6. (ii) Medical Incubator
This is a business incubator focused onmedical devices & biomaterials. For
encouraging innovation and entrepreneurship in medical technologies, through
technology, business incubation support is giventoinnovators, start-ups and
industry.
(iii) Kitchen Incubator
It is a business incubator focused onthe food industry. Specialty foods aretypically
high-value and, at least in the beginning, low production. Starting a commercial
kitchen from scratch can cost a huge amount of investment. Theaverage food
entrepreneur has to spend plenty before even making their first batch of food item.

7. (iv) Public/SocialIncubator
This isabusiness incubatorfocusedonthe publicgood.Socialincubatorsaimto providesocial
entrepreneurswiththe toolstoexpandtheir business.Thechallenging economic environment is
changing thelandscapeofhowwedo business.Atone end, somebusinessesavoidtheir social
responsibilityand,atthe other,charitieshavetofindwaystobemorebusinesssavvy tosurvive. India
hasembracedthe concept,with atwist,creatingthe idea of“socialbusiness”.
(v)Seed Accelerator
This isabusiness incubatorfocusedonearlystartups.Seedaccelerators,alsoknownas startup
accelerators,arefixed-term,cohort-basedprograms,thatincludementorshipandeducational
componentsandculminate in apublic pitchevent ordemo day.Whiletraditionalbusiness
incubatorsareoftengovernment-funded,generally takenoequity,andfocusonbiotech,financial
technology(“FinTech”), medical technology(“MedTech”), clean tech orproduct-centric
companies,acceleratorscanbeeitherprivatelyorpubliclyfundedandfocusona wide rangeof
industries.

8. (vi) Corporate Accelerator
It is aprogramofalargercompanythatactsakintoa seedaccelerator.A corporateacceleratoris a
specific formofseed acceleratorwhich is sponsoredbyan establishedfor-profitcorporation.Similar to
seedacceleratorstheysupportearly-stagestartupcompaniesthroughmentorshipandoftencapitaland
officespace.In contrasttoregularprograms,though,corporateacceleratorsderive theirobjectives from
the sponsoringorganization.Theseobjectives caninclude thewish tostaycloseto emerging trendsor
toestablisha funnelforcorporateventurecapitalinvestments
(vii) Startup Studio
This isabusiness incubatorwithinteractingportfoliocompanies.Startupstudio,alsoknownas a
startupfactory,orastartupfoundry,ora venturebuilder,is astudio-likecompanythataimsat
building several companiesin succession. Thisstyle ofbusiness building isreferredtoas “parallel
entrepreneurship.Thestartupstudiotrendhadreally begun togain momentumaround2008. Beta
worksis oneof thepioneersofthis model. Today,thereareover 65startupstudiosacrossthe
world,ofwhich 17havebeen built since2013.

9. (viii) Venture Builder:
Thesearesimilar to a startup studio, but builds companies
internally.Venture-builders arealso called tech studios,
startup factories, orventureproduction studios: Theyare
organizations that build companies using theirown ideas
and resources. Unlikeincubators and accelerators, venture
builders do not take anyapplications, nor do they runany
sort of competitive program. Instead, they pull business
ideas fromwithin their own networkof resources and
assign internal teams to develop them suchas Engineers,
advisors, business developers, sales managers, etc.
Venturebuilders develop manysystems, models, or
projects at once and then build separate companies around
the most promising onesby assigning operational
resources andcapital to those portfolio companies.

10. THREE STAGES OF
BUSINESS INCUBATION
DEVELOPMENT
 Physical facility support – Business
incubation provided within physical
facility
 Support service – Business incubation as
business support service
 Networking facilities -Business incubators
providenetworking facilities to the
members.
PHYSICAL FACILITY
SUPPORT
SUPPORT SERVICE
NETWORKING
FACILITIES

11. Types of Incubation
Services
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.
Following are the mostcommonincubator services:
(i) Theyhelp with business basics
( ii) Theyprovide Networkingactivities
(iii) Theyprovide Marketingassistance
(iv) Incubators help inMarketResearch
(v) Theyprovide High-speed Internetaccess
(vi) IncubatorsHelp with accounting/financial management
(vii) Theyhelp in providing Access to bank loans, loan funds and guaranteeprograms
(viii) Incubators help with presentation skills
(ix) Theylink to highereducation resources

12. Incubation Centers in
India
1. CIIE IIMA
2. IAN Incubators
3. SINE
( Society for
Innovation and Entrepreneurship)
4. STEP
5. IIML Incubators