Do you have a start-up plan, and the idea, and all of a sudden you wonder, “How?”, “From where will I get all the resources and a good workplace?” If yes, then you are at the right place.
In this era of entrepreneurs, the owners or managers of business enterprises who, by risk and initiative, attempt to make profits, where people are capable of reaching the heights of the sky but many aren’t able to because of lack of resources and some place to start their work.
Keeping this problem in mind, a whole new start-up ecosystem for the young entrepreneurs is provided by these centres called incubation centres.
Incubation centres are spaces provided by companies or universities for start-ups, for new root ideas to be catered. Just like eggs are incubated by hens in order to produce healthy chickens, the start-ups are incubated in these business incubation centres where they get support to develop their business before hatching into the market.
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.
Incubation centres operated by universities cater for ideas that take root while students are still studying to bridge the gap between rough concepts and fully-fledged businesses able to step into a commercial environment. The advantages of these companies are that there are a ready-made network of advisors and peers to help them if and when needed.
Entrepreneurs who wish to enter a business incubation program need to 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. It is this factor that makes it difficult to compare the success rates of incubated companies against general business survival statistics.
Now the question arises, “Who pays rents for these spaces and the resources provided?”
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.
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 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%).
The incubation centres help the entrepreneurs with guidance and mentorship, networking, and costs of operation.
The only drawback possible is that working in an incubation centre could be noisy and distracting due to the other people around.
So, if any of you wants to do be an entrepreneur, has some perfect B-Plan and are ready for the start-up but don’t know where to start and how, just go for these incubation centres, work hard, and come out with flying colors. Make your dreams come true.