This document discusses business incubators, which are programs that support new business ideas and help them become successful companies. It notes that business incubators provide financial and technical support services to startups in order to increase their chances of success and reduce costs. Specifically, the document outlines different types of incubators, their goals of transforming ideas into businesses, common services they offer, and models for financing incubators. Examples of business incubators in Palestine are also provided.

1. Introduction to:
Innovation and Creativity
BY KAMAL M. AL MASRI
Course code: ::::.BEAD4312..::::
Israa University Gaza
Faculty of Managerial and Financial Sciences
Departmentof Management
Chapter 07a: Business
Incubators

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ILO’s
Discuss the importance of business incubators.
Discover the existing business incubators in
Palestine.
Explain the models of funding incubators.
Contrast the types of incubators.

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Introduction
 The term “incubator”, “business incubator” or “technology
incubator” refers to a programmes destined to support new ideas
and help them become successful businesses.
 They are operated or sponsored by private or public entities.
 They may have different organizational or legal forms:
 association, public center, academic unit, private company, ….
 The National Business Incubation Association (NBIA) defines
business incubators as a catalyst tool for either regional or
national economic development.

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Goal
To help in creating and growing
young businesses by providing
necessary financial and technical
support.
 to increase the chance that a start-up succeed,
 and shorten the time and reduce the cost of
establishing and growing its business.
“transforming
an idea into a
real business”

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Services provided
 Business, accounting and legal Advice (training,
including soft skills, Property Rights,…),
 Logistics and shared premises (offices, machines and
tools),
 Networking (with different types of actors),
 Business Services and Marketing assistance (expansion
of the business),
 Mentoring (technical, scientific),

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Types of incubators..
Many types according to funding, propriety, objectives,
specialty, scope, …
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.

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For example, from Wikipedia
 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
 Technology Business Incubator - a business incubator based out
academic institutions

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The process of incubation
Many models, different stages …
We can retain theses main three phases:
 Pre incubation,
 Incubation,
 Acceleration.
 Then graduation and expansion….
 See the example of the Dar Teknohama Business Incubator
(DTBi) (here)
For each stage, specific services are
provided and specific competencies are
needed …

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In Palestine
 PICTI
 BTI
 UCAS
 Gaza Sky Geeks
 Arabreneur Palestine (Ibdaa)
 The Bethlehem Business Incubator (BBI)
 …

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Financing incubators
 Many models and methods.
 Specialists talks about more than 20 business models …
 Mainly, we have:
 Contribution of the incubated projects (lucrative, Mutualization),
 Participation/equity.
 Grants/Development funds.
 Needs a separated presentation and discussion …

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From different perspectives …
Business incubators can be seen and studied from
different perspectives:
 Incubators a socio-political game for interaction between stakeholders (in a
perspective of entrepreneurship),
 Incubators as a mechanism for resource allocation,
 Incubators as a tool of investment,
 Incubators as a study of “network behavior”, …
 …
 For more about theories and models of incubators, visit the link (here).
 Needs a separated presentation and discussion …

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Evaluation: performance, challenges
and critics of business incubators
 Sustainability (funding).
 High failure level.
 Coordination (between incubators and governmental bodies,
among incubators, …).
 Efficiency of incubators.
 Technical issues regarding equity in individuals projects.
 …

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To be continued …