What is Business Incubation Really?
Incubator this, incubator that, just what is an incubator?
What is business incubation really?
Incubation this, incubator that, just what is an incubation hub and what is an incubator?
Definition of incubation
Incubation, not the kind that has anything to do with hatching chickens or placing babies in. This is the kind that concerns itself with assisting entrepreneurs to grow their ideas into viable and profitable businesses.
According to Draper University Business incubators are specially designed programs to help young startups innovate and grow. They usually provide workspaces, mentorship, education and access to investors for startups or sole entrepreneurs.
How incubation can help your business
The role of incubation hubs is to provide all the basics and necessities you need as a startup founder. They provide resources such as business mentors, technical experts, and in most cases even work or collaborative spaces for you to run your business, as well as access to seed funding for your startup.
Different incubators run different programs that are suited for the type of entrepreneur they cater to. These incubator programs range from the ideation stage right up to the acceleration stage - which is more for the advanced type of entrepreneur who is already in business.
Incubator and accelerator are terms within the incubation space that are often used interchangeably, which is incorrect as they both mean different things and are for startups at very different stages of business. Shopify clear this up well in their Business Encyclopedia on incubation.
Services
Here is a list of 12 services you can expect from most business incubators, courtesy of the good people at TOPMBA:
1. Help with business basics
2. Networking opportunities
3. Marketing assistance
4. High-speed Internet access
5. Accounting/financial management assistance
6. Access to funding
7. Help with presentation skills
8. Connections to strategic partners
9. Comprehensive business training programs
10. Advisory boards and mentors
11. Technology commercialization assistance
12. Intellectual property management and legal counsel
Getting onboarded
All incubators have defined areas of focus in terms of the types of businesses they onboard, as well as the level of skill or competency required by the entrepreneur. All incubation programs are either government or privately funded (sometimes both). The funders collaborate with the business incubator to set the requirements for the type of entrepreneur and business that gets onboarded.
If you're thinking about joining an incubator, take our quick quiz to see if you're ready - Take me to the quiz
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