The Business Incubator is an agency responsible for finding and promoting certain projects with some good potential.
To do this it is necessary to consider various factors such as the future of the market in a particular sector, human resources (HR), precision technology, feasibility, local or global approach, and review whether it is innovative or not.
When any of the above requirements are not met, the company will enter the pre-incubator process to fix only the weak points.
Incubators can be called facilities, among others, that they provide physical space such as office buildings, shared services such as meeting rooms, advice, support, investment proposals and group formation for future alliances.
Therefore, the concept of a business incubator does not only refer to financial assistance, but also to the management, planning and organization of startups that have the opportunity to be successful in business.
Business Incubator Purpose
This business incubator has the responsibility to detect the weaknesses and strengths of the company in the future which are still in the embryonic stage. All this with the aim of facilitating the most suitable environment and providing the necessary resources, so that this company will be able to grow as quickly as possible. This usually requires a business opportunity from which profitability can be obtained.
And it should be noted and noted that the purpose of this business incubator is to promote a new generation of innovative businesses that can be successful in the market, for that it is usually aimed at entrepreneurs who not only get financial support, but also get training so they can learn about how to manage his company well.
Business Incubator Characteristics
Below are some of the most prominent characteristics of a business incubator, namely:
These business incubators are usually linked primarily to the technology sector, but there has been a growing diversity of these types of initiatives over the last ten years.
An important thing in the development of business incubators is educational institutions. They usually start by creating spaces and programs specifically for entrepreneurs who have no experience, or who do not have the financial resources to grow their own businesses.
They are also known as business incubators for startups, as they tend to promote the formation of new companies that are characterized by rapid growth potential. In other words that it is about scalable businesses, besides that they also usually have an innovative component, related to new Information and Communication Technology (ICT).
Entrepreneurs must present their business plan, outlining the mission and vision as well as the goals and strategies that the company will follow. In this way the viability of the business can be assessed, meaning if you can generate value for your partners.
Projects deemed eligible will receive advice on administrative, legal, accounting, financial and other matters. Likewise, their access to capital will be sought, for example from angel investors or agents who are looking for high-risk projects, but with considerable profit potential.
Business Incubator Phase
Projects in the business incubator choose stages. Below is an explanation of the stages, which are as follows:
– Pre-incubator: advice can be given to the entrepreneur so that he can outline his business plan, this usually requires market research.
– Incubator: this project is carried out to analyze the startup and the fulfillment of the set goals, this phase can last between one year and one and a half years depending on the business incubator institution itself.
– Post-incubator: each business will be monitored to improve certain areas. Perhaps this is the period where it can become more relevant and post-incubator it usually takes about half a year, but in reality this stage is always constant and indefinite.
In conclusion, a business incubator is an institution that provides technical and financial support to newly created businesses and companies, especially those seeking resources for expansion. In other words, this business incubator is an entity that offers advice and financing to entrepreneurs, it can even make resources available to you, such as a physical place (office) where you can run your business.
