Business incubators have numerous benefits for the entrepreneurs and businesses that access them, as well as the community, society, and the market. However, to participate in a business incubator and choose the most relevant one, you need to know several essential aspects.
In previous publications, we explained what are business incubators and how they help entrepreneurs grow their businesses. In this article, we advise you on who can benefit from business incubator support and the conditions for accessing them.
Business incubator services are generally dedicated to certain categories of entrepreneurs or businesses. However, each incubator has criteria and procedures for selecting its residents.
As business incubators provide business development support at the early stages, incubator residents can be:
- beginner entrepreneurs - people who have business ideas but do not yet have a registered company, are just testing the concept, working on the business model, looking for their first customers, etc.;
- start-ups - registered companies in the early stages of development who need support to develop their product and enter the market;
- inventors and innovators - people who are developing new technologies or products and need support for commercialisation.
What are the conditions for access to business incubators
To direct resources to the relevant destination with maximum efficiency, incubators usually select the entrepreneurs and businesses they work with based on a set of criteria, such as:
- viability of the business - applicants must submit a business model or business plan demonstrating how the business would operate, what its prospects are and how viable it is;
- innovation and scalability - incubators are often looking for innovative ideas with the potential to scale;
- commitment and motivation - applicants must demonstrate the commitment and motivation to work hard to develop the business;
- relevance to the incubator - the business idea must match the incubator's profile, areas of interest and expertise. Thus, if the incubator specialises in fintech or social entrepreneurship, only start-ups developing products in the same field will be accepted;
- assessment of potential: some incubators may require evidence of the market potential of the business or a working prototype of the product being worked on;
- entrepreneur or business profile: in some cases, incubators may set specific conditions regarding the status or profile of the entrepreneur or business. For example, a university incubator may require applicants to be students of that university and the business being worked on to have been in operation for up to one year.
Residents are usually selected competitively to ensure that the best candidates are chosen, with interviews and pitching events organised.
By supporting its residents, business incubators contribute to the economic development of the regions in which they are located by stimulating innovation, growing business, attracting investment and boosting competitiveness.
By supporting its residents, business incubators contribute to the economic development of the regions in which they are located by stimulating innovation, growing business, attracting investment and boosting competitiveness.
In addition to the obvious economic impact, incubators also have a significant social impact. By educating entrepreneurs, they contribute to the development of an entrepreneurial culture in the region, making entrepreneurial opportunities accessible to more people, including minorities and disadvantaged groups.
At the same time, many incubators focus on solving social and environmental problems, thus encouraging innovation with a positive impact on the community. Another benefit of business incubators is that they build support networks for entrepreneurs, reducing isolation and encouraging collaboration.
The article is made in collaboration with Tatiana Bucos, Director of the Pro-business and Education Services Center "SMARTLab ASEM" and the coordinator of the ASEM Business Incubator, being at the same time a trainer and mentor, contributing to the professional development of young entrepreneurs. The article is developed within the financial and entrepreneurial education project maib edu.
How many criteria does your business meet to collaborate with a business incubator?
