Benefits of business incubation

Entrepreneurship-and-Communication-Skills-notes
  1. It acts on a catalyst for economic development boosting entrepreneurial growth and
  2. It helps young businesses to overcome the challenges of new start up stage which causes business failure
  3. Encourages faster growth and survival of new businesses
  4. It helps to convert business ideas into profitable ventures supporting those with viable ideas and those that lack start up capital
  5. They help those individuals who cannot access mainstream business services

e.g. bank loans, modern consultancy services, etc which are expensive

  1. They provide a conclusive environment where the business succeeds
  2. They provide network activities which are necessary for business growth
  3. They provide start up structures thus providing a framework for enterprise development
Privately sponsored Publicly sponsored
1. They provide more space and tenant 1. The tenant capacity is limited

 

capability  
2. They are managed owners and

their employees

2. Are managed executive advisory

board appointed government

3. The selection criteria of who to incubate is not strict as they are

concerned with profits

3. There are strict entry standards as they are concerned with job creation
4. They allow tenants to stay longer till

the business can stand on its own

4. They have strict time limit due to

the limited space

5. Rent charge is high 5. Rent charge are reasonably cheap and at times there are no given

charges

6. They offer a variety of services such as    training,    conference       rooms,

typing etc

6. They concentrate on business and financial services
7. The business owners are financed

by    the    incubators    or    private investors

7. They are funded the government



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