Business Incubator refers to an organisation which helps small businesses, startups and individuals to develop and grow their business. This is achieved by offering a number of services like management training, office space training and capital financing.
What is a Business Incubator?
In common terms, a business incubator can be referred to an organisation or company which helps in the early development of startups and business ventures of individual entrepreneurs. However, the official definition of a business incubator as stated by the National Business Incubation Association (NBIA) defines a business incubator as a catalyst tool for either regional or national economic development.
Business incubators usually are formed by partnerships or collaborations between different organisations. These are often large organisations who are interested to invest in startups which they feel have a potential of growing.
These incubators are highly beneficial to the startups and individual entrepreneurs who are looking to grow their business. The National Business Incubation Association (NBIA) has categorised the business incubators into five types—academic institutions, non-profit development corporations, for-profit property development ventures, venture capital films and a combination of all of the above.
Business incubators are a means of meeting economic and socioeconomic needs including job creation, business creation, growing a business and accelerating its development, and encouraging new entrepreneurs by helping them in their business ventures.
To enter a business incubation program, entrepreneurs or small business organisations have to apply for admission, after which they would be selected based on the eligibility criteria for that particular incubation program.
What are the different services offered by the Business Incubators?
There are a number of services provided by the business incubators which help the startups and individual entrepreneurs in the development of their business. These services are as follows: - Training for business management. - Training in core business operations like accounting, research and marketing. - Access to office space and capital resources. - Advisory services.
