Role of incubators in building a start-up business
- BY Sanjana Surbhi
Feature Writer, BusinessEx
- May 24,2018
- 17 Mins Read
Start-ups are increasing by the day. Every new start-up begins with an idea, for which to be executed you need to work hard and try to make a difference through your products or services. To become a successful entrepreneur you have to face many obstacles. In the initial stages, you have to seek support financially as well as mentally. At each step, you need investors, mentors, office spaces and others who belong to your industry. And here enter the incubators who can help you in building your entrepreneurial career as well as business.
Who are business incubators?
According to the National Business Incubation Association (NBIA), a business incubator is ‘a catalyst tool for either regional or national economic development.’ Business incubators are firms that help developing startup companies to build up by providing services like training for employees, providing workspace, help with presentation skills etc. They are the team of people who help you transform your idea into a business by helping you in research, funding, revenue generation model building and in other aspects with their contacts, knowledge and experiences.
Earlier, incubators used to with tech companies or with industrial companies but now it has started working with diverse industries.
Role of incubators in building a start-up
Incubators are institutions that help the start-up companies at the stage of infancy. They will provide you with technical facilities, initial growth funds, mentors, office spaces and other needed facilities. They hold an important position in the whole start-up ecosystem. According to the handbook for Non-Profit Incubator Managers authored by IIMA’s Centre for Innovation Incubation and Entrepreneurship (CIIE), ‘incubation should be seen as the process of de-risking an idea or a start-up and helping them improve the odds of success.’
Here I have listed four important roles of an incubator in building a start-up:
- Funding Out of all the needs of a start-up this one is of utmost importance. Money is the fuel of any industry. Without funds, you can not set up your business. In this case, incubators are the one where you can go to ask for funding. They will help you by providing money from the other investors in the company by referring you to angel investors and venture capitalists.
- Provides service When no one will trust you, then incubators will be there to help you out in each and every situation. They will provide you office spaces, technical support and mentors as well. They will also tell you about marketing and sales strategies. Under one roof, they will help you with everything which includes presentation and guidance as well.
- Connections The incubator knows that you are a start-up and you will need special assistance and contacts to expand your business or even to promote it. They will assist you with the knowledgeable and skilled network of entrepreneurs, investors, consultants, service providers and interns. Incubators connect the budding entrepreneur, investors, mentors, trainers, students and other faculties who are working or have experience in the same industry.
- Management With all of the above roles, incubators also guides on how to compete successfully with the existing successful industries. They can get you in touch with the retired business executives or entrepreneurs who can provide management guidance and operational assistance. Start-up's benefits, if they have some big-shot businessman on their back as they will provide invaluable solutions and suggestions on the table and incubators will help you with all these. Incubators help in assisting the new start-ups. They have experienced mentors and executives who are of great help to the budding entrepreneurs.
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