Identification of the Justifications, Benefits and Advantages of Setting up the Incubator

Objectives

The reasons and motivations for setting up the incubator should be identified. This includes the expectations of the local community, partners and potential clients, as well as their views on type/general characteristics of incubator that is to be established.

Key Issues

When establishing the incubator, the management institution should be clear about the program benefits expected by stakeholders and the community. It is also essential that the institution is well aware of the reasons or motives prompting the incubator’s establishment. In aligning expectations and preventing future frustration it is imperative to find these motivations and justifications at an early stage. It is vital to know:

• How the community views the program and what its expectations are;
• Stakeholder’s (Government and private institutions) expectations;
• The incubator’s interactions or integration with local policies supporting new businesses development. In general, incubators put forward the following proposals, which are allied to the social, economic and technological development program:
  1. Job generation;
  2. Incentives for entrepreneurialism;
  3. Local/regional economic development;
  4. University-enterprise relationship;
  5. Local/regional economy diversification;
  6. Encouragement of entrepreneurialism among minorities;
  7. Technological research and development;
  8. Bringing in profits and opening up investment opportunities;
  9. Obtaining other benefits for the management entity;
  10. Encouraging exports and internationalization;
  11. Formation of clusters and production arrangements, etc.

Essentially, it should be made clear during the feasibility analysis stage that the incubator does not consist merely of physical space. Setting up the incubator is a process with clearly defined stages and rules and there is a concern with physical and “soft” infrastructure.

The lack of success among incubators often stems from an over-emphasis on physical space and infrastructure, while setting aside “soft” infrastructure factors such as: quality staff and services; and the process of selecting, overseeing and assessing the enterprise (See attachment Feasibility Study for the Incubator).

Responsible Parties

Managers and technical staff of the institution who wish to establish the incubator.

Indicators

• Time and costs for development of the feasibility study
• Funds raised and political support built up through the feasibility study

Results

The outcome of this stage is awareness of the reasons, motivations and opportunities justifying the establishment of the incubator. These could be deployed at meetings held to network and enhance awareness of the importance of the program.

For a Portuguese version, please click on the link below: