Business Incubators in India
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Transcript Business Incubators in India
Business Incubators in
India
Anshul Saxena
CINE
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
Source: http://www.1000ventures.com/presentations/business_incubators.html
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
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
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
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.
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
Taking examples from Europe
Extensive network of incubators
Incubators in or near by famous universities
Some expertise to offer
Provides technical and R&D support
Management
Technological
Networks
In fact, Incubators position themselves according
to the additional expertise they offer
Platform to pitch to VCs and PE funds
Network among Incubators
Help in preparing pitches
Incubators have some VCs as either stakeholders or
Board members
Incubators develop good track record and rapport
with certain VCs
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.
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
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
Incubators can be segmented according to the
ideas they incubate.
Infrastructure
Taking one step forward
Good infrastructure: a hygiene factor to companies
Thank You !!