Business Incubators – The Heart of The Entrepreneurial Ecosystem

1. Business Incubators – The Heart of The Entrepreneurial Ecosystem The essence of business incubators is to act as a catalyst to promote startup businesses and entrepreneurial ventures to find their ground meaningfully during the initial years. The purpose is obviously to enable new entrepreneurs to convert their creative ideas and visions into real-time business entities while some also work concertedly to ensure that there is overall economic development of the particular region too. Business incubators usually provide industry specific handholding support and are highly valued in industrial circles for their obvious value add-ons. The fact that incubators help and assist young firms to develop and grow into mature companies has helped provide the much required vibrancy and thrust to the entrepreneurial ecosystem for years now that has resulted in the development of a full-fledged incubator industry. Most incubators though are still working as part of university-linked programs where the entrepreneur is able to take help from the resources and network available at the behest of the incubator. From networking with investors and

2. funding sources for finding investments from office infrastructure to availability of research-related logistics, from mentors and experts to the opportunity to commercialize business ideas into practical realities – incubators provide supportive environment, acting as invaluable assets to the entire entrepreneurial system. The role of business incubators encompasses a lot of other aspects – they are helping create new jobs and opening up plenty of employment opportunities, help in promoting amicable environment for local industries, is assisting the technology and the medical field in evolving and developing further that is leading to the overall improvisation of the socio-economic scene of the entire region. Business incubators today provide the much-required help and support to entrepreneurs and start-ups in their early stages for periods that usually range between one to three years helping them to develop into viable and profitable businesses. The initial years are the most difficult ones for any commercial

3. entity which is why incubators are perceived to be the boost to the system helping proactively develop the entrepreneurial scenario of the country. How to choose the right business incubator? It is important to research in-depth about the legitimate and the legal status of the incubator. Entrepreneurs should evaluate in details about the past performance of the business incubator – the success ratios, and if possible take references from previous entrepreneurs.  It is good to review the length for which the incubator is ready to provide the support services. The length of operation is a crucial factor to consider for not all businesses will take off in the same period of time. The incubator should be able to offer the entrepreneur guaranteed support for a period that is mutually decided and found to be fit.  Look into the makeup of the top management or the senior leadership of the incubator. Also it is essential to look up the experts and business mentors that the incubators have on their program list. 

4. Look into the potential of the incubator in finding the right kind of funding resources and finding investments.  Lastly it makes sense to choose an incubator that has a viable location that is right for future growth plans of the business. 