International high 5:

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business incubator
WHAT IS A BUSINESS INCUBATOR?
It is a business that provides advice, equipment,
temporary premises, or other facilities to those starting
up a business and lacking in capital.
WHAT IS THE PURPOSE OF A BUSINESS INCUBATOR?
A Business incubator is established to develop and
implement a strong microenterprise development program
that addresses the needs of the low to moderate income
residents and provides access to loan capital, business
support, training, technical assistance and follow-up
services.

An incubator works with existing small business owners to

strengthen and sustain this sector as well. Most cities
recognize the potential positive and significant impact that
the development of micro and small business enterprises
has on economic development.
 DEFINITION OF 'INCUBATOR FIRM'
The firm can be either a non-profit or a for-profit
entity, and it can provide assistance via any or all of
the following methods:
1. access to financial capital through relationships
with financial partners,
2. access to experienced business consultants and
management-level executives,
3. access to physical location space and business
hardware or software and
4. access to informational and

research resources via relationships

with local universities and
government entities.
THE INCUBATION ECOSYSTEM

Service
Sponsors
Providers

Incubators

Corporate
Investors Portfolio Partners
Company

Economic
Development
WHAT SERVICES WOULD A BUSINESS INCUBATOR PROVIDE?
Training workshops
Technical assistance
Business support
Loan application and approval process
Loan disbursements and collections
On-going business monitoring.
Marketing,
bookkeeping,
business coaching
office/conference space for client meetings
office equipment that would otherwise not be affordable.
Non-clients will also have the opportunity to take advantage of
this planned facility, in a virtual way. Training will be offered to
incubator businesses and on-site staff will be there to assist.
WHAT ROLE WOULD THE INCUBATOR PLAY IN JOB PLACEMENT?
The business incubator would include a job placement center that
will begin with a community assessment of existing residents job
skills, potential job opportunities and skills training
The Center will act as a clearinghouse of information as well as
provide job seekers with some assessment and skills training and
placement.
TYPES OF BUSINESS INCUBATORS

There are 4 main types of Business Incubators:

Local Economic Development Incubators

Academic and Scientific Incubators

Corporate Incubators

Private Investors Incubators

LOCAL ECONOMIC DEVELOPMENT INCUBATOR MODEL
Goal Non-profit

job creation
re-industrialisation / revitalisation
Objectives economic development
support to particular target groups or industries
development of SMEs and clusters
small commercial craft or service companies
Targets
in some cases, high-tech companies
hosting and shared services
administrative assistance
Offering consulting
Eventually:
coaching, training, networking
access to financing
durability lack of stability of resources
quality of management and services provided highly dependent on
the quality of the manager
Key Problems
governance, risk of conflicts about the objectives, bureaucratic red-
tape, time spent in negotiating with different partners

regular development
Trends increasing territorial coverage
ACADEMIC AND SCIENTIFIC INCUBATORS
The emergence of a new mode of knowledge production, the
formation of a Triple Helix of universityindustrygovernment,
and the advent of the academic entrepreneur

BRIDGING TWO CULTURES

UNIVERSITY COMPANY
Create and propagate Financial return to investors,
knowledge for the public founders and employees using
good knowledge
Narrow Scope of License License
Revenue Expense
Academic Freedom Confidentiality
Control of Intellectual Control of Intellectual Property
Property
Commercial Flexibility and
Diligent Development Uncertainty
CORPORATE They typically follow a particular process of accepting

INCUBATORS
teams, training them, helping them ideate and
prototype, and develop their prototyped ideas
Corporate incubators and accelerators can provide vital funding and resources to
small businesses and entrepreneurships during their first few years of development
PRIVATE INVESTORS INCUBATORS
'Incubator Firm'
The firm can be either a non-profit or a for-profit entity, and it
can provide assistance via any or all of the following methods: 1.
access to financial capital through relationships with financial
partners, 2. access to experienced business consultants and
management-level executives, 3. access to physical location space
and business hardware or software and 5. access to informational
and research resources via relationships with local universities
and government entities.

BREAKING DOWN 'Incubator Firm'

An incubator firm that functions for profit will look to gain equity
in the company in exchange for their services. Sometimes simple
fees are charged at the time of service, but gaining equity in an
early-stage company with strong growth prospects is the ultimate
goal, and one that can provide a financial windfall for the
incubator firm if the early-stage company takes off.
TECHNOLOGY BUSINESS INCUBATION
BY UNESCO
The UNESCO Toolkit on Innovation in Engineering
Science and Technology is intended to guide sponsors,
researchers, educators and corporate and government
planner in exploring the incubation option, and then
in establishing and operating a successful Technology
Business Incubation programme
For more information contact:

t.marjoram@unesco.org
or UNESCO Publishing:
http://www.unesco.org/publishing
 Benchmarking the Management of Business Incubators in
EU Countries
Mission and strategic aims
Partnership and legal form
Premises and location
Financing
Management
Business planning
Target market and promotion
Admission and exit rules
Incubator space and services
Quality standards
Start-up and survival rates
Employment effects
Performance of firms
REFERENCES

http://www.investopedia.com/terms/i/incubatorf
irm.asp
http://corporate-innovation.co/2014/08/13/using-
corporate-incubators-and-accelerators-to-drive-
disruptive-innovation/
http://spp.oxfordjournals.org/content/29/2/115.sh
ort
http://portal.unesco.org/science/en/ev.php-
URL_ID=4924&URL_DO=DO_TOPIC&URL_SEC
TION=201.html
http://business-incubation.eu/what_we_do/

https://www.google.gr/search?q=business+incub
ators++photos