Entrepreneurship considered as a panacea for the economic problem. The concept of the Business Incubator has been emerged for at least 40 years to encourage the growth of entrepreneurship Business Incubator plays crucial part as a common platform, which could provide innovation acceleration through assortment of business support capitals and facilities. (Ettlie:2016) Incubator Business is an useful business development tool because it acts as a strategy, demanding only modest investment and with outstanding revenues to the regional economy in diversified industry base and employment (Joseph:2009) Incubators support and add value to the new venture creation (McAdam & McAdam:2008) Based on data from Asosiasi Inkubator Bisnis Indonesia (AIBI)-2016, there are 95 incubators in operation throughout Indonesia. The vast Majority of incubators 72% are functioned by Universities (Coordinating Ministry for Economic Affairs, 2015) The number was considered trifling compared with the existing incubator in the US alone, which estimated reached to 1.250 incubator in 2010, according to the National Business Incubation Association. Business Incubator offer a newfangled to encourage the combination of entrepreneurship and innovativeness. Incubator are noticeably a monetary improvement device designed to speed up the development and achievement of entrepreneurial firms over a range of business sustenance properties dan services. (Levakova: 2012) Incubators are a room where current knowledge based on ideas, methods, processes or products are inspired, developed, and commercialized. (Grimaldi & Grandi: 2005) mapped the business incubators into 4 (four) categories : Business Innovation Center (BIC) University Business Incubators (UBI) Independent Private Incubators (IPI) Corporate Private Incubators (CPI)

1. Indicator of Successful
Incubator in Indonesia
Comparison Between University Based and Private Business Incubator

2. Introduction
• Entrepreneurship considered as a panacea for the economic problem.
• The concept of the Business Incubator has been emerged for at least 40 years to
encourage the growth of entrepreneurship
• Business Incubator plays crucial part as a common platform, which could provide
innovation acceleration through assortment of business support capitals and
facilities. (Ettlie:2016)
• Incubator Business is an useful business development tool because it acts as a
strategy, demanding only modest investment and with outstanding revenues to the
regional economy in diversified industry base and employment (Joseph:2009)
• Incubators support and add value to the new venture creation (McAdam &
McAdam:2008)

3. Introduction
• Based on data from Asosiasi Inkubator Bisnis Indonesia (AIBI)-2016, there are 95
incubators in operation throughout Indonesia.
• The vast Majority of incubators 72% are functioned by Universities (Coordinating
Ministry for Economic Affairs, 2015)
• The number was considered trifling compared with the existing incubator in the US
alone, which estimated reached to 1.250 incubator in 2010, according to the National
Business Incubation Association.

4. Literature Overview
• Business Incubator offer a newfangled to encourage the combination of
entrepreneurship and innovativeness. Incubator are noticeably a monetary
improvement device designed to speed up the development and achievement of
entrepreneurial firms over a range of business sustenance properties dan services.
(Levakova: 2012)
• Incubators are a room where current knowledge based on ideas, methods, processes
or products are inspired, developed, and commercialized.
• (Grimaldi & Grandi: 2005) mapped the business incubators into 4 (four) categories :
1. Business Innovation Center (BIC)
2. University Business Incubators (UBI)
3. Independent Private Incubators (IPI)
4. Corporate Private Incubators (CPI)

5. Business Stages
SEED START-UP GROWTH ESTABLISH EXPANSION EXIT

6. Business Stage Explanation
SEED STAGE
Fase dimana bisnis masih dalam bentuk gagasan atau pemikiran
Challenge: Memastikan ide bisnis yang ada diterima oleh pasar dan
memastikan ide bisnis ini memiliki potensi ceruk pasar yang
memungkinkan untuk digapai
Fokus : • Menyesuaikan kemampuan bisnis dengan kemampuan,
pengalaman dan passion yang dimiliki
• Menentukan struktur kepemilikan
• Menentukan model bisnis
• Menyusun perencanaan bisnis
START-UP STAGE
Fase dimana bisnis telah lahir dan terlegitimasi keberadaannya
Challenge: Pada fase ini bisnis kemungkinan besar memiliki kebutuhan
biaya dan waktu yang lebih besar untuk menjangkau pasar.
Menekan biaya yang keluar agar tetap efektif efisien dan
mengawasi bisnis supaya tetap pada rencana yang ditetapkan
Fokus : • Membangun basis konsumen
• Membangun awareness
• Manjaga cash flow tetap ketat dan berjalan baik
GROWTH STAGE
Fase dimana revenue mulai terbangun, profit mulai kuat namun
competitor mulai bermunculan
Challenge: Membentuk manajemen yang efektif untuk menghadapi
masalah yang secara konstan datang
Fokus : • Membentuk tim
• Membentuk sistem keuangan yang baik
• Membentuk manajemen yang lebih formal
ESTABLISH STAGE
Bisnis sudah menjadi semakin matang, basis konsumen loyal sudah
mulai terbangun. Penjualan tidak lagi eksplosif namun bisnis
seharusnya sudah mulai lebih bisa dikendalikan. Kegiatan bisnis pun
lebih terfokus kepada rutinitas umum.
Challenge: Memikirkan rencana bisnis baru untuk pengembangan dan
untuk menghadapi competitor yang lebih besar
Fokus : • Inovasi dalam bisnis
• Otomasi sistem bisnis
• Peningkatan produktivitas

7. Business Stage Explanation
EXPANSION STAGE
Fase dimana bisnis mencoba mengakuisisi pasar baru dan saluran
distribusi yang baru
Challenge: Melewati fase seed kedua untuk pengembangan.
Pengembangan harus diarahkan untuk melengkapi dan
menambah pengalaman dan kemampuan pemilik usaha.
Fokus : • Menambah variable produk atau jasa
• Membawa bisnis yang ada ke pasar yang lebih luas
EXIT STAGE
Peluang untuk menikmati hasil usaha dengan melepas usaha itu ke
pasar atau di scenario yang lebih buruk menutup usaha tersebut
Challenge: Mendapatkan nilai valuasi yang ideal dan namun tetap
realistis dan berusaha menjual kepada pihak yang bisa
melanjutkan bisnis ini untuk lebih mengurangi resiko
psikologis dan finansial yang dihadapi pelaku usaha
Fokus : • Menilai valuasi perusahaan
• Mencari pihak yang ingin membeli bisnis ini

8. Different between University Based Incubator
and Private Business Incubator
Aspect University based Incubator Private Business Incubator
Objective (from incubator’s
perspective)
• Non-profit
• Jobs Creation
• Increase business skill,
professionalism,
entrepreneurial mindset of
tenant
• Growth in business expertise
(incubators staff)
• Recognition from the
government and industry that
leads to good reputation.
• Commercialization of
knowledge
• Continued support from the
stakeholders
• Profit
• Growth of Asset
• Supporting Startup with High
Growth Potential
• Investors Network (seed capital
funds)

9. Different between University Based Incubator
and Private Business Incubator
Aspect University Based Incubator Private Business Incubator
Segmental Focus • Technology based startups,
creative industry, social
enterprise
• Technology Based Startups
The degree of involvement • Research and Technology
commercialization
• Integrate clients in the largest
technology development system
Incubation Strategy • Commercialization of research
in the university, creation of
new job, and forming
• Cooperation between
universities, industries,
communities, and the
government
• Strategy from ideation to exit

10. Different between University Based Incubator
and Private Business Incubator
Aspect University based Incubator Private Business Incubator
Services • Physical space, coaching and
mentoring, support services,
networking, legal assistance,
financial and accounting
consulting, management and
marketing assistance
• Laboratory, office facilities,
knowledge support, and
financial support
Exit Strategy • The time limit of the incubation
process
• The startup perceived being
mature by the incubators
• Achieved business target and
objectives
• Fail to achieve business target
and objectives
• Need more support that
incubator cannot offer
• Revenue
• Firm Age
• Valuation

11. Different between University Based Incubator
and Private Business Incubator
Aspect University based Incubator Private Business Incubator
Affiliation • Government, University,
Industry, Community
• Private, Community, Industry
Source of Income • Funding from the university
and government
• Share of the incubate
Success Indicators • Number of Incubates Startups
• Network and Engagement
• Sustainability of the Startups
• Number of graduated incubatee
• Funding raised
• Return multiply
• Successful exit
Room for Improvement • Internal evaluation should be
based on the needs of incubatee
• Creating concise program
milestone with clear policy
programs
• Dynamic and efficient business
operation
• Dynamic management for
incubating efficiency
• Concern for sustainability
growth of tenant or the startups

12. Indicator of Successful Incubator
Factor Name Evaluation
Internal Process
• Mechanism of Idea Validation
• Prototype Development
• The Strategy to Innovation
• Maintaining the cooperation with Industry
• Market Growth of the Tenant
Tangible Assets
• Profit of the Tenant
• Occupancy rate office and working space of Tenant
• The total number of commercialized research or
technology creation
• Revenue
• Share
Resources Capability
• Public Awareness
• Technology Transfer
• The total number of invention of incubator
• Reputation

13. Indicator of Successful Incubator
Factor Name Evaluation
Long Term Goals
• Number of successful tenant
• Amount of investment
• Growth of profit dan assets
• Incubator award
• The sustainability growth of tenant
• Job creation
• Regional economic development
Program Offering
• Selection of the tenant process
• Networking opportunities
• Business skill coaching
• Access to fund and industry
External Relation
• The cooperation with industry
• The cooperation with government
• The cooperation with university

14. Indicator of Successful Incubator
Factor Name Evaluation
Operational
• Operational cost for the organization
• Mentoring & coaching for tenant
• Employee satisfaction
• Managerial of incubation process
Organizational Output
• The total number of Mature Startup
• Funding created
• Shared generated
• Exit strategy of startup