Business ideas incubator
Aspiring entrepreneurs need active support and mentoring from their more experienced colleagues. A business incubator is an organization that supports various startups, from the stage of developing an idea to the implementation and promotion of a project.
Business incubator development
The first organizations to support young entrepreneurs emerged in the United States in the 1960s, when it became clear that many business ideas would remain in the minds of their creators if they were not supported in time.
Business incubator activities
Organizations created to support entrepreneurs function completely legally, and are called upon to perform the functions of a "soft springboard" for the newly formed company to enter the domestic and global business space. Business incubator clients can count on the following services:
- Consulting services (legal, financial, organizational)
- Provision of office and initial infrastructure
- Training (trainings, workshops, participation in educational programs and focus groups)
- Initial investments (for preparation and initial promotion of the business)
- Meeting with investors who can invest in the project
Business incubator - website and other informational support on the Internet
No project can be implemented without debugging effective communication channels, one of which is the site. An information resource in the landing format (sometimes a multifunctional site) is being developed for a novice businessman, and they also help to register and manage an account on social networks - to set up contextual advertising, use the page's functionality and attract the target audience.
Financing business incubators
Organizations to support startups receive subsidies from the state budget as the official authorities are interested in the development of small business. The legal status of organizations can be state (when the institution is controlled by central authorities) or municipal (control is carried out by local government).
Starting platforms for business development exist at the expense of taxpayers, to support them, state and municipal authorities form special funds.
This is not a joke, this is very serious
A business incubator is an organization whose main goal is to support small businesses at the initial stages of their formation by providing premises for rent, providing consulting, legal, accounting and other services.
For novice businessmen, using the services of a business incubator allows you to reduce the costs of organization and management and focus your maximum efforts on the implementation of the entrepreneurial initiative itself. The cost savings are due to low incubator costs.
From the point of view of the state, the creation of business incubators contributes to the development of small business. Therefore, the activities of business incubators are regulated by law.
Business incubators are usually regionally linked
Their appearance is directly related to the level of economic development of the region and is aimed at its further development. Quite often, they are opened on the basis of large scientific or educational centers that have the appropriate material base and human resources.
Now in more detail about the services provided by the business incubator
In its most general form, the list of services rendered by the incubator is as follows:
- Assistance in providing office furniture;
- Accounting or accounting services
- Customer service: their search, ordering, receiving and processing calls.
- Records management, a set of text documents, printing and photocopying, a selection of documents from the regulatory framework on a specific topic and others
- Personnel search
- Consulting on the formation of a business promotion strategy <
- Searching for investments
- Conducting various thematic trainings, seminars on business and psychology of success
These lists may differ slightly for each individual incubator and contain specific services related to the peculiarities of the region they serve.
Now in more detail about how to get into the business incubator
Of course, first you need to have a business idea and a project, at least a general one, to implement it. The type of activity that you plan to do must be legal and, ideally, in demand in the region.
The Business Incubator is an organization that supports aspiring entrepreneurs. Assistance consists in full support of the business, from the development of an idea to commercialization. Startups are provided with a range of services and resources, including advice on economic and legal issues. Thus, the business incubator helps newcomers to stand firmly on their feet.
What is it
A business incubator is a structure that creates a "greenhouse" environment for business beginners.
The startup and his team are provided with everything they need on preferential terms:
- A room equipped with appliances and furniture;
- Communication means;
- Consulting an accountant, marketer, lawyer, analyst;
- Conducting an advertising campaign;
- Financial support;
- Staff training;
- Assistance in lending;
- Attracting investors.
Entrepreneurs who want to start their own business have a unique opportunity to go the path of formation from developing a business strategy to entering the market with the support of professionals. The incubation of a newly minted company takes about 3 years, before the company is firmly established in the market. After that, the grown enterprise continues to function independently.
When registering, a business incubator must meet the following requirements:
- the presence of premises of at least 900 m2;
- at least 760 m2 should be allocated for rent to entrepreneurs;
- organization of workplaces (70 employees );
- availability of a room equipped for negotiations;
- equipment of the hall for lectures, seminars;
- trained staff.
In addition to sorting out ideas that claim to be supported by an organization, a business incubator can independently initiate the promotion of an entrepreneurial project, a priority for the state economy.
Raising young businessmen like chickens - a decade ago, this thought sounded like a stupid joke. Today, such a phenomenon as a business incubator is gaining more and more popularity. Yes, they grow, help, support. And if your startup is really worthwhile, but lacks resources or expert advice, read our article carefully.
Let's start by defining the concept. A Business Incubator is a specialized organization that supports aspiring entrepreneurs and helps you grow your business. The main goal is to help the business get back on its feet.
What's the use?
A business incubator gives an entrepreneur:
The cost of renting a decent room is not affordable for a novice businessman who, in fact, has not earned anything yet. A business incubator can provide the necessary space for a minimum rent.
2. Postal and secretarial services.
Processing correspondence and communicating with the authorities takes time, and the business incubator also takes care of this problem.
Not every beginner entrepreneur has sufficient knowledge in jurisprudence, patent, tax legislation, and other aspects of doing business. Often you need professional advice to help you deduct the contract, and also explain, for example, how legitimate and reasonable the claims of the authorities or business partners are.
4. Assistance in attracting investments.
They will help you to correctly draw up documents for obtaining government subsidies, formulate and provide guarantee obligations to investors and banks.
Often a business incubator helps to organize participation in exhibitions, conferences, hold a presentation, and create a corporate identity.
6. Tenders, competitions, grants.
Hearing the word "incubator", we immediately imagine a special apparatus for raising chickens, where they are protected from a hostile external environment. In the business sphere, the purpose of the incubator has not changed - only its content has changed: business incubators really "grow" projects of start-up entrepreneurs, providing them with comprehensive assistance.
The law defines business incubators as organizations whose purpose is to support start-up entrepreneurs who do not have enough funds and knowledge to implement ideas that can generate income in the future. In other words, ideally such institutions work as centers for the dissemination of innovations, but, unfortunately, it often comes down to the banal rent of cheap offices - without the more necessary consultations and organization of useful meetings at the initial stage of the project.
History of the emergence and spread of business incubators
The first organizations resembling business incubators appeared in Great Britain in the middle of the 20th century. And the first business incubator of a modern type appeared in America (Batavia) in 1959 - as a response to the Great Depression: entrepreneur Joseph Misko acquired a warehouse, which he turned into a business incubator, thereby creating jobs in his hometown. Misko's idea suddenly began to gain popularity, and less than 30 years later, in 1985, there were already 70 incubators in the world. In 1992, their number increased to 470, and in 1995 it almost tripled and amounted to 1,100. There was an obvious need to regulate and control the work of such institutions: the National Association of Business Incubators appeared. Of course, business incubators conquered the United States in the first place - and there were several reasons for that. First, it was necessary to restore the decayed cities and industry. Secondly, it was necessary to stimulate entrepreneurial activity and develop innovative activities in universities. Thirdly, favorable conditions for international cooperation were established.
In Russia, the first business incubators began to appear in the 1990s, since earlier, under the planned Soviet economy, such organizations could not exist in principle. The first business incubators in Russia emerged on the basis of the Academy of Market and Management (13 institutions in total). Subsequently, thanks to grants from America and Canada, the number of organizations increased.
In 2021, the state began to help the founders of business incubators. The Russian government provides subsidies for the construction, equipping, renovation and overhaul of buildings where such organizations are located.
In 2021, more than a billion rubles were transferred for the development of business incubators in the regions (of which more than 650 million rubles from the federal budget and almost 400 million rubles from regional budgets).
Pros and cons of business incubators
Working in a business incubator offers a number of benefits to aspiring businessmen, especially if the right organization is chosen to fulfill its obligations. What bonuses await those who decide to grow their business in "greenhouse conditions"?
- Low cost of renting an office in a business incubator. In the first year, the premises are provided free of charge (or for a minimum fee), in the second year, the payment varies at the level of 40–45%, in the third - 90–95%.
- Free office services (paperwork, receiving and sending correspondence, fax, printing, stitching), free Internet.
- Fast result. A well-organized incubator infrastructure helps you see the results of an idea faster than under normal conditions. The creators organize useful meetings, trainings and educational courses that prepare businessmen to go out on a "free float."
- Information support - providing access to catalogs, databases and reference books.
- Providing business services. It differs in different organizations and includes patent and legal services, accounting, auditing and marketing services.
- Assistance in finding investors, including paperwork for applying for a grant, as well as self-attracting investors and grants. Assistance in obtaining bank guarantees.
- Organization of the production process. Incubators cooperate with universities, institutes, research institutes, industrial enterprises, which gives access to research results and special equipment.
- Help with advertising, creating your own style, finding exhibition sites and areas, providing an opportunity to participate in specialized exhibitions and conferences.
- Involvement in the business environment, meetings with other entrepreneurs, acquaintance with the shadow sides of the chosen industry.