Business Incubation, What is a Business Incubator?

Business Incubation, What is a Business Incubator?

Business Incubation, What is a Business Incubator?

These are industrial development policies promoted by the government or by the private sector, which basically consist of physical spaces equipped to house business or industrial activities at the design stage, prototypes and formal start of production or services, to which assistance is added technique and the necessary accompaniment to get to train in company.

The Incubators provide a physical workplace, assistance and support services directly to the incubators, who are supported in key aspects of their businesses, such as the elaboration of business plans, strategies, marketing, financing, legal assistance, protection of intellectual property.

They have been visualized in the Incubators, an instrument of complementary support to public or private policies, since they allow linking areas or sectors that are generally developed in parallel ways and therefore it is not easy to interact as they are university, company and government, through moments difficult in economic development.

The aspect or central theme of these experiences is the search for the consolidation of those business ideas and projects of high economic potential and of an innovative nature that, under current conditions of lack of support and adequate corporate structuring, do not reach to become mature companies and die trying.

The incubation process.

An Incubator is an economic development tool because its main mission is to produce successful businesses that are financially viable and autonomous, after the incubation of the Incubator.

The process begins with the marketing and promotion of the Incubator to attract entrepreneurs with projects and potential to become successful companies, then the applicants enter a selection process, during which the Incubator's manager and his staff evaluate the profile of the management team and the business idea. Next, the accepted applicants enter a Pre-Incubation stage, which can last between 2 and 3 months, in which they must define their Business Plan and generate a work plan for the entire Incubation phase, with support from the Incubator staff.

At the end of this stage, the pre-incubators apply for the Incubation itself, presenting their Business Plan to the Incubator's board, which selects those projects that meet the program requirements and have a good chance of success. Those accepted applicants enter the Incubation stage , where the Incubator accompanies the company in the development of products and services, and the beginning of its commercial activities.

During this stage, the incubators also receive support to carry out a detailed Business Plan, access different financing and capitalization instruments, assistance and training in business creation and management issues. Estaetapa can last between 1 and 3 years, depending on the type of company.

 Once the company goes to the Market, a follow-up process is initiated by the Incubator, so that the company does not completely disconnect. Eventually, it can access post-incubation services such as product improvement, access to new rounds of financing, etc.

In addition, this link allows the Incubator to keep a record of the information on the performance of its graduates in the Market. The success of the incubators is affected by conditions both internal to companies and to their dreams. Among the first, the profile of entrepreneurs (leadership, commitment, risk tolerance), the degree of market knowledge and the type of business or product selected stand out.
 Incubators, Entrepreneurial Ecosystem and Business Models The business incubator guides the stages of the development of a project, advising, applying adjustments and partially or completely financing the creation, development and consolidation of innovative ideas, until reaching potentially successful and sustainable companies. The participating actors receive, collect and at the same time transmit the know-how or know-how in the various areas of knowledge involved in the project.

Regardless of the model followed, there are a set of stages that organize the states through which a project or company goes through an incubation process.

These stages may vary in name or number depending on the model used and how it is implemented, for example:

The American Business Incubation Association presents a three-stage model, Pre-Incubation, Incubation and Post-Incubation.

The Monterrey Institute of Technology and Higher Education (ITESM) presents a model organized in four stages, Promotion and Selection, Pre-Incubation, Incubation, and Post-Incubation.

In the following articles the stages proposed by A. Nichols are reorganized, organizing the process in five stages:

      • Promotion and Selection.

      • Pre-incubation

      • Incubation.

      • Post-incubation.

      • Tracing.

Although these stages progressively describe the progress in the incubation process, each organization that implements it assigns them a duration, order, regrouping or dividing according to their work methodology, the nature of the projects to which they support and their specific objectives. .
Regardless of the model adopted by the incubator, they can be successful as long as they become a real instrument of economic development and development, that is, when they associate the ability to "incubate" with those of generating internal and external dynamics related to productivity, with innovation and with creativity.