Start-ups generally face the problem in the initiation of business. Even if they start, its still difficult for them to create a network and attract investments. To overcome these barriers entrepreneurs generally go for help from incubators and mentors. A business incubator is a company that aims to provide support to start-ups by providing various services, to develop themselves in the market.The National Business Incubation Association (NBIA) defines business incubators as a catalyst tool for either regional or national economic development.
National Association of Software and Services Companies (NASSCOM) and Zinnov Consulting report reveals that India now has the third-highest number of start-up incubators and accelerators in the world after China and the US.
A report titled Incubators/Accelerators (I/As) says the number of incubators and accelerators in India grew drastically around 40% in 2016, with more than 40 of them seeing the light of the day.
According to above report analysis, academic institutions run around 51% of incubators, 31% are independent, while the rest are corporates around 9% and governments 8% in India.
In India, constant grow of start-ups increasing the demand for incubators as well. Incubators become a necessity for start-ups, various educationalists and experienced members of the industry are understanding the need and forming their own business incubator firms.But, it is not necessary that incubator will ready to provide necessary facilities to each entrepreneur, proper analysis of business idea and its feasibility will be checked by incubator first, then only start-up will be selected for further process.
A platform like businessex.com helps start-ups as well as an incubator to set up their profile on it and helps to make the connection with relevant interested parties. Entrepreneurs can find trusted incubators here and incubators can showcase their entity through this portal to potential start-ups.
Major Question that pops up in every entrepreneurs mind before engaging with an incubator is;
Incubators have myriad advantages for a start-up but major ones are:-
Incubators help start-ups save on operating costs like sharing overhead expenses, such as utilities, office equipment rentals, and receptionist services. This sharing of operating is for a fixed amount of period as per the agreement generally its between 6 months to 3 years.
Referring to angel investors and venture capitalists and helping them on how to present themselves in order to convince them for investment helps start-ups with their investment needs. Also from an investors perspective, working with an incubator can lend some credibility to start-up, as hiring an incubator is a signal of dedication that entrepreneur has towards his start-up.
Each industry has its own list of specialised incubators possessing various connections in the industry.Having access to incubator surely helps start-up to connect with influential people to expand their business networks for faster growth.
Insightful advice and knowledge are shared by incubators if there are any business issues that affect the business functioning or expansion process. People having the knowledge and can take decisions on their own may overlook this speciality of incubators but its very helpful especially for struggling start-ups.
In todays life, Incubator role as mentor has also increased. Incubators are also focusing on providing mentoring services to those in need. Mentoring is a successful model to help start-up face difficult situations and take right decisions. Also, helps an entrepreneur to grow personally and professionally both.