Managing Incubators, Business accelerators and emerging Companies training materials

1. Round II
Prof Dr. Ing. Mohamed Galal
Consultant of Innovation, Entrepreneurship & Business
Incubator
Managing Incubators, Business
Accelerators and Emerging
Companies Program
Professional Program of Certified Incubator Manager | 2022

2. Prof. Dr.-Ing. Mohamed Galal
• Dean, Faculty of Engineering, Al-Azhar University
• Ph.D. in Engineering from Friedrich-Alexander University, Germany. (one of
the Top 100 World’s Most Innovative Universities and No. 40 in the
Engineering field).
• Advisor for Innovation, Entrepreneurship, and Incubators.
• MS.c from AACHEN University, Germany in “Managing Technology and
Innovation: Managing disruptive Change”
• Founding Director of Technology Innovation Commercialization Office (TICO),
(E Club), RWAQ Technology Business Incubator, Design House, Al-Azhar
University.
• Entrepreneurship, management of innovation and technology, and IP policies
at different universities worldwide such as Babson college (Boston, USA),
Aachen University (Germany), WIPO (China), London South Bank university,
Birmingham university (London, UK), University of Cyprus (Cyprus), MTDC
(Malaysia), KPMG (Cyprus), ASRT, TIEC, NU, GAFI (Egypt).
Consultant of Innovation,
Entrepreneurship & Business
Incubator

3. 3

4. Before We Start…
• Keys to facilitating successful communication during this program.
• Ask us to slow down if we are speaking too fast.
• Stop us if you do not understand what we are saying.
• Please, please, please ask questions and offer comments.
• Our goal is to help you enhance both your knowledge and your skill. Skill development only
comes with practice. Please engage in the exercise as you and your colleagues apply what you are
learning.
• Please note that we have structured the schedule so that you have a networking break –
specifically to enhance your opportunities for informal networking and also to give you time to
check e-mail – and so forth.

5. 5
Certified Incubator
Manager
Managing Incubators, Business Accelerators & Emerging Companies Program
Entrepreneurial Mindset
Success Factors for Business Incubators and Accelerators
Business Incubator Models
Business Incubation Definitions and Principles
The Theories in Support of Incubators
Monitoring, Evaluation and Benchmarking
Setting Up Virtual Services
Managing the Incubator
Planning an Incubator
Technology Commercialization Through Incubation
Marketing and Stakeholder Management
Financing an Incubator
Deals and Financing for Incubator Clients
Implementing a Mentoring Program for Incubator

6. 6
Certified Incubator
Manager
Managing Incubators, Business Accelerators & Emerging Companies Program
Entrepreneurial Mindset
Success Factors for Business Incubators and Accelerators
Business Incubator Models
Business Incubation Definitions and Principles
The Theories in Support of Incubators
Monitoring, Evaluation and Benchmarking
Setting Up Virtual Services
Managing the Incubator
Planning an Incubator
Technology Commercialization Through Incubation
Marketing and Stakeholder Management
Financing an Incubator
Deals and Financing for Incubator Clients
Implementing a Mentoring Program for Incubator
KNOWLEDGE
KNOW-HOW
PROFESSIONAL

7. Business Incubation Definitions and Principles

8. A complete introduction to business incubation
Knowledge building with
hands on experience
A Brief & Intro
about Business
Incubation
Team capacity building,
skills enhancement
PRINCIPLES AND
GOOD PRACTICES
OF BUSINESS
INCUBATION
Technical, Managerial,
Financial and Legal
Consultancy services
Case Study
Business Incubation Definitions and Principles

9. Success rate of Incubated Companies
still in market fail
Success rate of non-incubated
Companies
still in market Fail
Why Business Incubator ??
* According to NBIA Publications

10. Why Business Incubator ??
* According to NBIA Publications
Entrepreneurial
spirit.
Networking and
Team
Access to Finance
1
2 3

11. Strongly justifies the need for an
effective incubator manager

12. Before establishing An Incubator Think Global
Business Incubator (the
close inner community)
The business
Incubation (process )
The Wider Business
Incubation Community
(Sustainable Development)
Economic
Social
Entrepreneurial

13. National Business Incubation Association (NBIA) of
the united States of America (US)
“Business incubators nurture the development of
entrepreneurial companies, helping them survive and grow
during the start-up period, when they are most vulnerable.
Incubation programs provide business support services and
resources tailored to young firms. ”

14. Goals of incubation programs
FOR NBIA
enhancing a community’s
entrepreneurial climate
creating jobs in a
community
retaining businesses in
a community,
FOR Infodev
fostering innovative enterprise
creation and growth
enabling environment at
the start-up stage of
enterprise
EXIT, an agreed upon
milestone is reached,
You can
place your
GOALS here
building/accelerating
growth in a local industry

15. Intermediary Vehicles for Innovative
Startup Development
15
15
00 %
00 %
00 %
00 %
00 %
Incubators
BDS
Technology Parks
Co-working space
Accelerators
E.clubs

16. Startup Development Stages
Incubation Phase

17. Early-Stage Entrepreneurial Activity )TEA)
)Opportunities,
knowledge, and
skills(
• Nascent
entrepreneur:
involved in setting
up a business
Owner-manager of a
new business (up to
3.5 years old)
Owner-manager of
an established
business (more than
3.5 years old
Conception Startup Birth Persistence
Startup Development Stages
Potential
entrepreneur
:
Nascent
entrepreneur
:
Owner/
Manager:
Owner/Mana
ger:
Incubation Period
Pre-
incubatio
n Period
Post-
incubatio
n Period
Incubation Process

18. Startup Growing /Development Stages
01
02
03
04
05
The Goal is to develop the idea.
Seed
Focus on achieving sustainable
scaling.
Growth
The sale stage can be by
acquisition, by another
company or by IPO.
Exit
The stage where expansion to
new markets should be
considered.
Expansion
Having a product in the market
and the first metrics.
Early

19. FOUR main components of Business Incubation Process

20. In order to determine the needs of
entrepreneurs, the incubator staff
should listen to their clients and
develop trusting relationships with
them to provide them with the most
appropriate services.

21. Virtual Incubation
Networked
Incubation
Outreach
Incubation
03
02
01
The FOUR main components of Business
Incubation Process should raise to SEVEN

22. Common challenges tackled by business incubation
OPTION
02
OPTION
04
OPTION
03
“Business Incubator is an
oasis of cultural safety”
where “managers have faith
in you and your ideas.”
Remember that
01
OPTION
01
Lack of business
knowledge and
experience..
Lack of
social capital
Unrealistic
expectations
Lack of
managemen
t awareness
and
experience..

23. PRODUCT SERVICE BUSINESS MODEL PRODUCTION
INNOVATION BROUGHT TO MARKET

24. BI Generations
Virtual incubation → All the
above minus the physical walls
elements.
.
4th Generation
2000s
IMPACT → Reducing start-up
investments
.
1st Generation
1950s
IMPACT → Extending the
business opportunities for
incubatees and increasing speed
of tenants in affirming their
legitimacy.
3rd Generation
1990s
IMPACT → Acceleration through
the learning curve
2nd Generation
1980s

25. Principles and Good Practices of
Business Incubation
an incubator manager should be successful in
balancing the incubator’s double-role as a
business enabler and as a business in itself

26. Key Principles of Business Incubation
1
2
3
4
1. Realize the incubator itself is a
dynamic model of a sustainable
and efficient business operation,
and must be managed as a
business-like organization.
2. Focus the energy and resources of
the incubator on assisting companies
throughout their growth process,
3. Develop a huge range of
services and programs directed at
companies according to their
needs and stage of development
4. Develop a network that the
incubator can rely on..

27. Elements of Incubation
Outreach
and Virtual
services

28. Linkages support Incubation
The incubator
management team
must continuously
assess and meet the
individual needs of
incubatees, as this is
crucial to the success
of the incubation
process.
the process of establishing linkages for
incubatees, with the incubator serving
as an intermediary in the first contact
and then facilitating direct connections
between incubatees and outside agents
Local
service
provider
Public/
private
BDS
Universities
, technical
centers and
research
institutions
Financiers,
Government
agencies
Private
sector
mentors
Shared
Values

29. A8
A7
A6
A5
A4
A3
A2
A1
Strategic
Planning Cycle
A5
Develop the incubator’s
facilities, resources, methods
and tools to address the
evolving needs of each client.
A6
Seek to integrate the incubator
program and activities into the
fabric of the community and its
broader economic development
goals and strategies.
A7
Develop stakeholder
support.
A8
Maintain a management
information system for
ongoing evaluation
A1
Commit to the three key
principles of business
incubation
A2
Obtain consensus on the
incubator’s mission and develop
a strategic plan to achieve its
mission.
A3
Plan for financial sustainability
by developing and implementing
a realistic business plan.
A4
key Good Business Incubation Practices
Recruit and provide
appropriate salaries to an
incubator management
team and board of
directors.

30. Phases of Incubator Development
Development Phase Mature Phase
This is a complex phase
incubators will focus on
marketing, relationship building
and reaching a critical mass of
incubatees to secure a positive
cash flow
.
offer high quality and
comprehensive incubation services,
which are flexible and sustainable.
By demonstrated their impact on
the wider economy through the
successful graduation of incubatees
This phase is comprised of
those actions taken before an
incubator is established
Foundation Phase

31. Business Incubation Models

32. Key factors differentiating one BI
from another
Mission /
strategy
Industry
Location Market
Services
offered
• Managerial teams
• Origin of ideas
• Phase of intervention
• Incubation period
• Sources of revenue

33. Purpose
Affect policy-making
Incubator Model Chart
Business Incubator Model
Ownership Nature Area of Activity
Profitable enterprises
development
Job Creation
Entrepreneurship
awareness
Research
commercialization
Income generating
opportunities for
disadvantaged
populations
Mixed-use
Technology-based
Industry-specific
For-profit
Not-for-profit
NGO
University
Government
Private entity
Public-private
partnerships
Stimulate the
economic activity
and development
of rural and
sparsely populated
areas

34. Business Model Canvas

35. Business Model Canvas

36. Start with Customer, then Business
Use learning from customers to inform
how to create business.

37. Vision: Create Entrepreneurs.
Jumpstart your
idea quickly.
Find your
meaning.
Lean startup
principle.
Find out if
customers like
your idea.
Entrepreneurs
Product Teams
Service Teams
Academies
CEO, CFO, GM
Fees to attend
% of New ideas in market
Word of Mouth
Social Media
Event + follow-
up support from
the community.
Mentors
Content
Conduct events
Follow-up
Coaching
Corporations
Conferences
Lean Startup
community
Per-event: Facilities,
facilitators
(~$6,000 est.)

38. Jumpstart your idea
quickly.
Find your meaning.
Lean lean startup
principles.
Find out if
customers like your
idea.
Entrepreneurs
Product Teams
Service Teams
Academies
CEO, CFO, GM
Fees to attend
% of New ideas in market
Word of Mouth
Social Media
Event + follow-
up support from
the community.
Mentors
Content
Conduct events
Follow-up
coaching
BUs
Lean Startup
community
Per-event model
(~$6,000) + employee time
Vision: Mentor Entrepreneurs.

39. The Business Model Canvas of an incubator
39

40. Success Factors for Business Incubators
and Accelerators

41. COMPARISON
Incubators focus on early-phase startups
that are in the product-development
phase and do not have a developed
business model.
Accelerators focus on speeding up the
growth of existing companies that
already have a minimum viable product
(MVP) in the hands of early adopters with
an established product-market fit
Stage of the venture:
Incubators do not typically invest capital
into ventures, but they may ask for an
equity stake in exchange for the valuable
resources they're providing. I.
Seed funding:
It's standard practice for accelerators to
provide ventures with a seed investment
in exchange for an equity stake in the
company
Seed funding:
Business incubators typically develop
their ventures on a slower timeline. Their
goal is to incubate a business idea as long
as needed to build a successful
company—and that incubation period
may take one to two years..
Program timeline:
accelerators run more like a startup boot
camp and tend to have a set time frame
of only three to six months.
Program timeline:
Incubator
Accelerator
41
Stage of the venture:

42. 42
CHECKLIST
Establishing & managing a successful BI
Create an environment favorable to business incubation
Identify an applicable business model
Secure financial resources
Train innovative, entrepreneurial and committed individuals
to conduct the business incubation process
Contribute to public policies inline with the reality and
perspectives of an increasingly global world.
Provide competent, innovative and knowledgeable incubator
management
DO. DON’T.
Check the factors to guarantee success

43. 43
CHECKLIST
Establishing & managing a successful BI
Establish a network of relationships and alliances to the
benefit of incubatees
Maintain an understanding of current technological and
market trends
Identify and develop strategies for incubatees to secure
financial resources
Select the right client
Provide proper infrastructure and structure services that
support new business
DO. DON’T.
Check the factors to guarantee success

44. Not generating a critical mass
of clients (20 – 30+)
Not utilising or developing
the incubator’s external
network of contacts and
service providers sufficiently.
44
AVOID
A poor understanding of the
time incubation takes to
produce results leading to
unrealistic expectations.
poor adaptation to local
circumstances..
Insufficient communication
with the incubator
stakeholders leading to
weakening support.
Not giving sufficient
importance to the issue of
self-sustainability.
Insufficient independence of
the board of Directors from
the incubator management.
Inadequate provision for
attracting, motivating and
incentivising staff..
Too much pressure to fill the
incubator space.
Poor selection of client firms.
Not applying enough
importance to the potential
client’s entrepreneurial
characteristics.
Not understanding that
incubation is usually primarily
about changing paradigms of
the entrepreneurial team and
developing business skills

45. The theories in support of Incubators.

46. New
Venture
creation
theory
Resource-
Based View
Dyadic
theory
Real options
theory
Social
Network
theory

47. Self Financing success of Incubator.

48. Consulting Services
Rental Fees
Subsidization
Self Financing Success
The process of how we
get self financial
sustainability.

49. Equity Agreements
Royalty Agreements
Brokerage Fees
Self Financing Success
Sharing with the
Incubatees.

50. • Corporations will use incubators as testing
grounds or ‘creativity centres' where new ideas
are nurtured.
• Many of the start-ups are operated by
entrepreneurial employees of the funding
corporation.
• The incubator or its clients are used to support
public goals such as a cleaner environment.
• Public supported incubators are common place.
• The funding may not be reliable over the long-
term due to changes in the political landscape.
Funding Success
Public Support Private Support

51. provide a
facility at no
cost .
seed
investment
contractor of
services on a
fee-for-
services basis
subsidize
the
incubator
Sponsorship

52. Planning an Incubator

53. The incubator should focus on areas in which
there is
a market need
an opportunity
for growth.
53
Planning an Incubator is a systematic approach to planning an
incubator, from the development of a feasibility study to a full
business plan and the establishment of optimal operational
strategies.

54. Feasibility Study Planning.

55. Pre-Feasibility Study
OPTION
02
OPTION
04
OPTION
03
01
OPTION
01
Putting together
the right team to
plan an incubator
.
Learning and
capacity
building
Setting up a
stakeholder
working
group
Deciding on
results.

56. Social
Economic
Political
Business
Technological
Culture
Establishing an
Incubator
Root Cause Analysis - Planning

57. Planning - Feasibility Study
• planning stage consists of the collection and preliminary study of information on
the social,
economic,
political,
business,
technological,
and cultural situation in the area
planned for its implementation and the possible influences of these factors on the business incubator.
Awareness of these variables will help define the general strategies and objectives for the incubator.

58. How to make
a market
research ??

59. Primary & Secondary Market Research
Primary
• Primary market data is generated
through a comprehensive needs
analysis, or demand survey which
aims to further quantify the size of
the potential market, its
characteristics and needs, now and
in the future
Secondary
• Secondary market data comes from
existing market information such as
local economic data, industry sector
surveys and publications, online
databases, information from local
chambers of commerce, newspapers,
and magazines.
• Secondary market data is useful in
particular for providing quantitative
macro-level information such as the
overall size of the market, market
trends, emerging and growth
industry sectors, geographical
disparity of economic activity, and
data on business fertility/birth and
death/exit rates by industry sector.
Needs Analysis
1. Survey design;
2. Consultations; and
3. Focus groups with potential
clients.

60. Compiling the Results of a Market Research
Study
The input from these primary and secondary sources of
information will directly contribute to making
a “go” or “no-go” decision regarding the
incubator establishment.
If the decision is “go,” the market information
obtained will provide the basis for selecting,
inter alia, the business model, the service
portfolio, the organizational structure and
resource planning of the incubator

61. Four key success factors
which provide a useful
basis for Go / No- Go
decision making
• Does the proposed incubator
project have:
1. A solid market
2. A sound financial base
3. Strong community support
4. True champions?

62. If a ‘Go’ response cannot be clearly and unanimously provided by
the stakeholder working group in each of these fundamental areas,
then only two possible conclusions can emerge:
• • Either further research is required in order to obtain an affirmative
response; or
• • An incubator may not be the most appropriate solution for the
community in question.

63. Business
Planning.
63

64. Vision & Mission
Statements, Strategies
for an Incubator

65. The strategic
framework of
an incubator
1
2
3
5
6
7
4
A vision for the future;
A mission that defines what
you are doing;
Values that shape your
actions;
Strategic objectives to
guide your daily, weekly
and monthly actions;
Financial Analysis
Impact, monitoring &
evaluation measures
Strategies that define the
approach to achieving the
mission and vision

66. How to Build a Powerful Vision
Statement
The vision and
mission statement
for an incubator
cannot be
delegated to
external parties to
prepare.
It must be owned
from the outset by
the key stakeholders
involved in the long-
term planning and
support of the
incubator.
Very often a local
champion emerges
with their own
very clear vision
about what the
incubator should
set out to achieve.
It is important,
however, to get
‘buy-in’ to this
vision from the
outset.
should be
developed or at
least discussed
and agreed by the
first board of
directors and key
stakeholders.
should be reviewed for
continued relevance as
part of a strategic planning
review which should take
place periodically at least
once per year.

67. A typical mission statement contains three
components:
1. The overall purpose of your incubator - what are
you trying to achieve right now? Why are you in
business?
2. What your incubator does – what are the core
products and services it provides?
3. What is important to your business? What are the
values your business holds and aims to convey to
clients and stakeholders; for example accountability,
objectivity, creativity, and ingenuity?
The mission statement describes
the "what" of the organization:
• It states why the incubator has
been established
• It states what the organization
aims to achieve
Mission Statement

68. S W
O T
Strength.
What Do you do
well?
Opportunity
What are your
Goals?
Weakness
Where do you need
to Improve?
Threats.
What obstacles do
you face?
Clarify the positioning of the incubator in the
marketplace BY SWOT analysis

69. Click to edit Master subtitle style
Designing a sustainable Business
Model

70. To Guarantee the ongoing support you have to work on
TripleBottomLine

71. Deal flow issues
• Incubator design
• Critical mass
• Networks
Business Incubation Intensive
Virtual and outreach incubation
Pre-incubation
Entrepreneurship awareness
Ongoing Quality ‘Deal Flow’ – Demand from Quality
Clients

72. Incubator Business
Plan

73. The Marketing Plan contributes directly to the sustainability of the
incubator by identifying and securing ‘deal-flow.’
• To attract more or better quality clients
• To engage new partners, sponsors, and donors
Most Marketing Plans contain:
• An executive summary
• A statement of the incubator’s overall business goal or vision
• A description of the incubation program and its current services
Objectives of the Marketing Plan:
The Importance of the Incubator Marketing Plan

74. Overview of Human Resources Requirements
KEY AREAS
Administration of the incubator – financial, legal, HR, IT
Strategic planning, reporting, monitoring and evaluation
Marketing, stakeholder management and public
relations
Development and maintenance of the physical
environment

75. Management of Human Capital
Attract new
staff
Encourage staff to
continue working for
the incubator
Support their
skills
development
Motivational
tools
Incubator
managers must
prepare specific
programs to
develop the people
who work for them
(their human
capital).
Efficiency,
Productivity and
Joy
Assessing their work
performance as well as
any areas of need

76. 76
Sponsorship Deck
PEST Analysis
ECONOMIC Environment
TECHNOLOGICAL
Environment.
POLITICAL Environment
SOCIAL Environment
.
PEST
Analysis
Customer Competition
Company
Marketing Strategy
Achieving maximum possible positive
differentiation over competition in meeting customer needs

77. Non-paying stakeholders' role
Participating in the
incubator’s board of
directors.
Providing services,
knowledge, training,
mentoring, coaching, and
counseling to incubator
companies.
Communicating with and
conducting promotional
activities.
Providing volunteer staff
support.

78. Pros & Cons Template
Marketing
Strategy
Job creation
Company growth for
taxes/rates
Hub for SME development
Investment in economic
growth and people
development
Community
involvement and
success stories
Skills
development/multi
-skilling
Cost effective
Growing enterprises
Good infrastructure
Highly skilled mentors
providing effective advice
Access to finance
Value for money;
reduction in costs of
start-up
Networking
Advertising and
publicity
Well equipped and
conveniently
located premises
Skilled and flexible
staff
Keep Both Incubatees and Sponsors HAPPY

79. Pros & Cons Template
Promotion Channels
Networking
Public
relations Publications
01 02
Entrepreneurs
hip Days,
Awards
Events and
Competitions
03
Testimonials
Training
Seminars
04
Conferences
and Trade
Shows
05

80. Financing an
Incubator .
80

81. Investment
Spreadsheet

82. Cost &
Expenditure
Spreadsheet
critical to understand where the
incubator’s funds are going and
where they are needed.
Its a marker of the incubator’s
financial outflows and crucial for
sound management.
Should be kept accurately and
updated
on a monthly basis

83. Operating Costs(On-going Costs)
are normally expenses that occur on a regular basis, such
as employee salaries, utilities, office rent and supplies.
They are simply the day-to-day expenses due
to running the incubator.

84. Revenue Spreadsheet
• Incubator Generated;
• Third-Party Generated.

85. DEBT FINANCING IMPLIES THE
ACQUISITION OF CAPITAL BY A FIRM THAT
SIGNS A PROMISSORY NOTE REQUIRING
THE REPAYMENT OF THE PRINCIPAL
AMOUNT PLUS A PAYMENT OF INTEREST.
DEBT FINANCING THROUGH THE BANKING
INDUSTRY IS POSSIBLE IF THE INCUBATOR
CAN DEMONSTRATE SOURCES OF REVENUE
Debt Financing

86. Equity Financing
EQUITY FINANCING REFERS TO THE FINANCING OF A
VENTURE IN WHICH THE VENTURE GAINS THE
FINANCIAL RESOURCES FROM THE EQUITY INVESTOR
IN EXCHANGE FOR AN OWNERSHIP POSITION
ACQUIRED BY THE EQUITY INVESTOR.
IT RAISES CASH IN EXCHANGE FOR OWNERSHIP IN
THE INCUBATOR.
THIS FINANCING SOLUTION IS BEST SUITED TO AN
INCUBATOR WITH A MANAGER CAPABLE OF DEALING
WITH INVESTORS, AS WELL AS A STRONG
KNOWLEDGE ABOUT THE ECONOMIC ENVIRONMENT.

87. Revenue
from
Incubated
Enterprises
• Rental fees;
• Consulting services; and
• Profit Sharing Agreements.
- Royalty agreements
- Brokerage fees
- Equity agreements

88. For University Incubator ASRT
Grants Provide
leverage
funding
from other
sources
Provides
credibility
for our
clients
among their
stakeholders
gives our
organization
credibility with
NGOs and civil
society
organizations
helps to
attract
potential
clients
gives our
organization
credibility
with
government
and
policy makers

89. Conclusion
raising funds is a lengthy and demanding process, but essential to enable the business incubator to
carry out its operations.
Hence, the key is to develop a robust fundraising strategy by approaching the most suitable
financiers with the relevant data and arguments to convince them to fund the incubator.
once the required funds are secured, it is fundamental to monitor and assess the financial
performance of the business incubator to make sure that the funding gap identified has been
appropriately filled by the different sources of funds and revenues in order to progress towards
incubator sustainability.

90. Indicators of Successful Financial
Management
Net Profit Margin
The net profit margin measures
the difference between an
incubator’s revenues and its
profits after tax.
Net Profit Margin = Net
Profit / Revenues * 100%
Self-Sustainability ratio
The self-sustainability ratio measures the
relative size of the incubator generated
revenue compared to third party
generated revenue.
Self-Sustainability Ratio =
(Incubator Generated Revenue)
/ (Third Party Generated
Revenue)
Cost Employment
Generation
Cost of Employment Generation
(CEG) measures the amount
required for the incubatees to create
a vacancy.

91. Non-Finance related Indicators
a rise in entrepreneurial activity,
as measured by the level of new
business registrations,
an increase in international
attention resulting from foreign
investors
an increase in development
projects in the region, for
example in infrastructure or ICT;
the number of new policies
implemented that are favorable
to small company development.

92. Managing the Incubator

93. Incubator
policies which businesses
to select to enter
the incubation
program;
the terms and
conditions of the
incubation
agreement;
Exit Policies governance
rules
The Incubator manager should ensure the existence of
full policies for systematic management
93

94. Client
Selection A GOOD MATCH EXISTS
BETWEEN THE INCUBATOR’S
RESOURCES AND MISSION AND
THE APPLICANT’S NEEDS AND
POTENTIAL.
DECIDE FIRST THE ENTRY
CRITERIA TO BE USED FOR NEW
INCUBATEES, AND THEN TO
COMPOSE A PANEL OF EXPERTS
WHO ARE QUALIFIED TO
ASSESS IF THE ENTREPRENEUR,
THE BUSINESS IDEA, AND THE
TECHNOLOGY MEET THE
CRITERIA THAT HAVE BEEN SET.

95. Entry Criteria
These “entry” criteria must take into account the objectives of the incubator and the outputs
against which it will be measured.
Establishing a clear set of entry criteria is the first step in an effective, strategic selection
process, which may vary from incubator program to program and from incubator to incubator.
These criteria may include business type, growth potential, and even
commitment to staying in the local area after graduation.
Setting specific entry criteria,, will ensure the manager or selection committee selects
applicants most appropriate for the program

96. Commitment and
entrepreneurial
profile
Background and
expertise
3. The market
opportunity, dem
4. The potential
financial viability,
5. The investment
potential
6. The social
capability
7. The industry
sector, if the
incubator focuses in
specific sectors;
8. The
innovativeness of
the product/service
Entry criteria take into account:

97. Selection
Panel/
Committee
Members of the selection
panel should have
demonstrated that they have
an entrepreneurial mindset;
• Members may be sourced
from the Board of Directors
and the know-how network
of the incubator, such as
investors, coaches, and
mentors;
• Members should represent
the diverse expertise
required, such as business
management experience and
capabilities (including
financial, Hr resources,
marketing and stakeholder
management), and relevant
technical expertise when
required; and
• Members should act in
advisory capacity to the
incubator manager and
Board.

98. Tips and
tricks
The best selection panels comprise of about 3
people, ideally entrepreneurs or persons with
entrepreneurial experience.
The incubator manager should also sit on the
selection panel.
Ideally the board will be responsible for the
entry policy, but should not be required to
approve applications.
The incubator manager should implement the
decisions of the selection panel and report to
the Board accordingly.

99. IDEA Selection Journey
applicants might
learn about an
incubation program
submitting a formal
application or business plan.
Applicants who
meet the
incubator’s entry
criteria might then
be invited for a
formal interview
with the manager
or the selection
committee
Assess the Business Idea

100. How to BEST assess the Business Idea
01 02 03
04 05 06
Selection
Committee Inquires
The Market The financial
situation
Management
Team
Entrepreneurial
Potential
the Growth
Potential

101. Incubation Process (Program)
101
once a business
meets the entry
criteria
Incubator
Contracts
formal incubation
agreements must be
signed between the
incubator and its client
Incubator – client
Handbook
Monitoring
Development
agreement will be terminated
and the incubatee will be
asked to leave the program
reporting obligations
Post-
graduation
Follow-up
Graduation ceremony .
Graduat
ion/ Exit
Policy
Incubation
Process
After assessing the
idea

102. Incubation agreements will typically state
The space and facilities
The agreed pricing
policies for space and
services
The agreed set of
supporting services
Payment modalities;
Duration of the contract
including options for
early exit, or extension,
subject to the terms of
the overall graduation
policy;
Procedures for setting
development objectives
and targets,
Procedures for
monitoring progress
Exit policy if progress
milestones are not met
or non-compliance with
other contractual
obligations

103. Incubator-Client Handbook
Following their acceptance into the
incubator, an orientation program
meeting and/or an Incubator Client
Handbook is a useful way of informing
new tenants about house policies.
details of important incubator policies
such as retention and
graduation criteria are clearly spelt out
from the beginning of the contract

104. Monitoring Development
Identifying client needs is an
ongoing process as their needs and
the environment in which they
operate changes on a daily basis.
As part of the agreement between
the incubator and client companies,
a series of review meetings
should be agreed at which progress
against key milestones is assessed

105. The most
used criteria
are:
• An experienced management team;
• Financial stability, such as funding and/or
turnover to operate for 6 to 12 months;
• Significant product sales and backlog of orders;
• No continuing need for incubator services;
and/or
• Space requirements exceeding the incubator’s
capacity.

106. Graduation
Ceremony
• The Value of Graduation Ceremony
Incubators should consider the
benefit of organizing a ‘graduation’
ceremony or function on an annual
basis.
• For incubators it is a great way to
highlight the incubator and its
successful graduated companies.
• For incubatees it is also a great
showcase of their achievements
and a way of “closing a chapter” for
them.

107. Post-graduation
Follow-up
• Monitoring long-term
incubator performance
• Post-graduation programs

108. THANK
YOU
Prof Dr. Ing Mohamed Galal.
Email : m.galal@azhar.edu.eg
m_galaly@yahoo.com
Tel. No. : 01098989426