The incubation process offers much more to businesses than simply a business location. The incubation process can therefore continue after a business has graduated from an incubator to commercial premises. This article discusses aspects of the post-incubation process and how ongoing support can be delivered efficiently.
Objectives
The objective of the post-incubation stage is to offer an opportunity for companies that have graduated to continue benefiting from the services and partnerships available from the incubator.
The major benefit that the post-incubation stage provides is a network of entrepreneurs that can contribute to the sustainable development of the region.
Key Issues
In developing the post-incubation phase, the incubator management team needs to consider the following:
- Duration: a post-incubation stage may have been predetermined (or not). In some cases, the incubator may wish to offer a continuing service and support a graduated company through to consolidation on the market. For this reason, the post-incubation stage has a time period that is specifically agreed upon by both parties. In other cases, the post-incubation stage can be used by the incubator to secure a Local Productive Arrangement (LPA) that maintains interactions with companies that have already graduated. An LPA can have advantages for the incubator when the graduated company maintains a strong interaction with the incubator and its partners. For example, a post-incubation connection is common for nanotechnology and biotechnology companies, due to their need for continuing contact with research centres.
- Services offered: the management team need to carefully analyse services offered to graduated companies. Aside from assisting in the resolution of the challenges that these fledgling companies face, the services offered post-incubation can be an excellent source of capital for the incubator as companies generally pay market rates for these services using their own funds.
- Technological/Industrial Parks: these are a natural progression for recently graduated companies, since there can be interactions with companies already there. Hence, the incubator management team can have a role in creating/consolidating a technological/industrial park, which could be a natural place for the some graduated companies to progress to.
- Performance monitoring: the Incubator needs to obtain quantitative information on the success of graduated companies. The management team must implement a system of monitoring the graduated company after graduation. This is independent of whether the company does/does not participate in the post-incubation stage.
Responsible Parties
Incubator management team
Indicators
- Number of graduated companies that participate in the post-incubation stage.
- Percentage of incubated companies that participate in the post-incubation stage.
- Number of graduated companies that set up offices in a (linked) technological/industrial park.
Results
- Creation and/or consolidation of Local Productive Arrangements.
- Obtain resources for the business incubator.
- Possibility of partnerships among graduated companies and incubators.
Environment for Enterprises Follow-up – CELTA – Brazil www.celta.org.br
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