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What are Business Incubators?

11/8/2013 8:00:33 AM | by Anonymous

Incubators

Business incubators refer to a type of project that is created to help newly formed businesses to launch successfully, grow and develop. Most of the times, these projects are taken care of by universities and colleges as they have the necessary facilities and resources to carry out the business incubator. Sometimes the people involved in the project usually work together with the local business administration to establish helpful guidelines and provide the entrepreneurs with the relevant facilities and resources to launch and develop their new companies. This is very important as the actions that the companies make in the first few months are usually the deciding factor of the company’s survival. The people involved in the business incubation are usually qualified professionals with much knowledge and experience.


The main purpose of the business incubators is to encourage new entrepreneurs to set up and develop new companies within their existing community. Having a new company in a community comes with many benefits. Firstly, it will create a number of jobs in the area providing those unemployed with a job. That particular area may also bring in more revenue to and visitors. Overall, the city’s economy may be revived if the company is able to launch successfully. This will also enhance the quality of life for the locals who are staying there.


As many entrepreneurs have many things going through their mind while starting up a company, business incubators aim to fill that void. Many entrepreneurs may not have the money or time to graduate from a good college obtaining a business degree. This means that they might lack useful knowledge that may be crucial to the success of their new knowledge. Many times, starting businesses also do not make a profit which means that they might not have the money to purchase resources that may be helpful to them. This is where business incubators come in; they help educate entrepreneurs about starting a new business and provide facilities and basic resources to these new companies. If they are unable to do so, then business incubators connect the entrepreneurs with the potential investors who are able to fund the company.


The structure of a business incubator varies among different companies. However, most of the business incubators follow some basic guidelines. Most of the times, each business incubator is slightly different as it has to be tailored to the different needs of each starting company. This could depend on the type of industry they are in, the culture and the demands. The structure is also dependant on the people involved in the project, because different people have different ways to doing things. Incubators may also simply refer to an office space or area which the new business can use to help manage and secure its operations to gain new customers. There are also incubators who find volunteers to help the businesses with tasks such as accounting or handling customers.

The community governing the business incubators sets some criteria that applicants have to meet in order to be involved. Entrepreneurs also have to meet certain criteria in order to gain help through business incubators. This means not all entrepreneurs are eligible to receive help from business incubators. This is to ensure that the limited resources provided by the business incubators are being used to its fullest potential on companies that will make a contribution to the company.


Thus, business incubators are a very good way to encourage people to form new companies as they know that things will be much easier through the help of the business incubators. Overall, everyone will benefit from it if the company is able to successfully launch and develop into something greater.

 

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