Business Incubators in India

1. Business Incubators in India Anshul Saxena CINE

2. What are Business Incubators • Incubation is a dynamic process of business development. • Incubators nurture young firms, helping them to survive in their early stage. • Incubators provide: • Infrastructural support i.e. office space, meeting room • Platform to do networking • Management assistance • Other support services, specific to incubators

3. Source: http://www.1000ventures.com/presentations/business_incubators.html

4. Benefits of Incubation • For Tenant Companies • For Corporate World • The new technology / product gets developed • Informed investment choice • Possibilities for takeover • For Govt. • Economic development • Social benefits • Encouragement to innovate

5. Model • Linear Model of Innovation: • Origin of all innovation lies in Research activities • Role of universities • Since Universities receive Govt. grant, so ideas of current national interest incubated • Apart from R&D support, managerial support also required to develop business • Commercial feasibility to the ideas • Networks in suitable places can prove handy

6. Indian Scenario • Incubation at nascent stage • Mostly in a college / university, e.g. • TREC – STEP (NIT, Trichy) • Society for innovation and entrepreneurship (IIT – B) • Nirma Labs • Technology Business Incubators – IITD • TBI@KEC (Kongu Engg. college, TN) These incubators provide technological support • STPI (Software technology parks) • CIIE, IIMA

7. Example • Main Activities of SINE are to: • Incubate early stage entrepreneurial ventures based on technology and innovation. • Create physical infrastructure and support systems necessary for business incubation activities. • Facilitate networking with professional resources, which include mentors, experts, consultants and advisors for the incubatee companies. • Identify technologies/innovations which have potential for commercial ventures. • Promote and foster the spirit of entrepreneurship. • Carry out activities that facilitate knowledge creation, innovation and entrepreneurship activities.

8. STP • Remarkable Govt. initiative • Special incubator in software sector • Objectives of STPs are • To establish and manage infrastructure resources i.e. Data communication facilities, core computer facilities • To promote development and export of software services • Fast clearance (single window) for statutory services • To train professionals • Currently in about 34 cities across India

9. Taking examples from Europe • Extensive network of incubators • Incubators in or near by famous universities • Provides technical and R&D support • Some expertise to offer • Management • Technological • Networks • In fact, Incubators position themselves according to the additional expertise they offer

10. Platform to pitch to VCs and PE funds • Help in preparing pitches • Incubators have some VCs as either stakeholders or Board members • Incubators develop good track record and rapport with certain VCs • Network among Incubators • Incubators develop network among themselves • Help them in utilizing networks with VCs and other research firms • Some examples: Manchester Business school incubator, IT univ. of copenhagen, London science park etc.

11. Govt. assistance • UK trade and investment (UKTI), an arm ok UK foreign ministry works with incubators • Organizes programs wherein motivates young companies to be part of these incubators • Also invites foreign startups • Provides Legal and other statutory services to incubators

12. The way ahead • Govt. initiatives to develop incubators • Public-Private partnerships • Some benefits and sops to develop and manage incubators • The return in this business (incubators) come after a gap of time, Govt. needs to fill this gap in PPP • Indian incubators have to think beyond R&D assistance • Networks with VCs and other firms also required

13. Incubators can be segmented according to the ideas they incubate. • Infrastructure • Taking one step forward • Good infrastructure: a hygiene factor to companies

14. Thank You !!