Types of business incubators

Entrepreneurship-and-Communication-Skills-notes
  1. Classical incubators / business centers

They are more like a nursery bed, a start up unit or a community enterprise workshops They provide to them premises, infrastructures and other range of services needed at early stages of business

2.       Industrial estates / zones

They offer a dynamic approach to regional economic development. They provide industrial shed as well as capital for start up. E.g. the Kenya industrial estates.

3.       Export processing zones (EPZ)

They are special businesses that are useful in developing exports and foreign exchange potential. This is because they work better with international economies.

The aim of the zones is to attract foreign investments facilitating business services and providing access to infrastructure

At the EPZ, business is easier to conduct due to the conducive environment that readily established.

4.       Science and technology incubation

They provide the creative environment to attract and promote resources based enterprises

5.       Virtual/internet incubators

They offer services through the internet. They help companies to connect with each other and supplier to connect with purchaser through electronic data interchange, through teleconferencing, e-commerce etc

6.       Public incubators

These are not for profits purposes. They are established government or non governmental organizations to foster and promote the economy through growth of entrepreneurship

7.      Privately sponsored/commercial incubators

These are run private investors as a venture with a hope of seeking a return of the investments. They charge a fee for the various services they provide for the business.

  1. University related incubators

They are established at universities as academic programs to enable the university translate their research findings into reality

  1. Public – private incubators

They are joint efforts between the government and non profit agencies

These types of incubators offer a greater advantage because as the government provides the finances, the technical support will be provided the private sector of its expertise.



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