When you hear about the term Business Incubators, you surely come up with a lot of questions in mind. So here are a few frequently asked questions about business incubators –
1. What are business incubators?
A – Business incubators are basically groups or organizations that work for the development and nurture for the growth for a company which is at its early stage. It helps them to survive and grow during the early stages and also provides them business opportunities by providing investors and showing new marketing strategies. The most common goals of incubation programs are creating jobs in a community, enhancing a community’s entrepreneurial climate, retaining businesses in a community, building or accelerating growth in a local industry, and diversifying local economies.
2. Are they new?
A – The concept of incubators isn’t new. The term came to existent during the late 1999 and early 2001. But there are evident of business incubators being in existence in the 1950s as well. So business incubators aren’t exactly new. They are as old as the business itself.
3. How many of these business incubators are there?
A – There are over 1,250 business incubators till October 2012 in the United States and still counting. However, according to the NBA estimate, there are over 7000 business incubators worldwide. The incubation model has been adapted to meet a variety of needs, from fostering commercialization of university technologies to increasing employment in economically distressed communities to serving as an investment vehicle.
4. What are the types of Business Incubators?
A – There are a lot of different kinds and types of business incubators. They come in variety of different sizes and shapes and needs. From tech incubators to nonprofit business incubators, the list goes on.
5. How do these incubators help start-ups get funding?
A – There are many ways through which the incubators help the firms get funding. Here are a few ways –
a) By managing various loans such as in-house, revolving and microloan funds.
b) They help the start-ups to get into touch with angel-investors—these angel investors are high-net-worth individual investors.
c) The incubators also help the companies in making the capital presentations perfect and connect them with venture capitalists.
d) They help the companies and startups when they are in need of loans and help them applying for the same.
Incubators are really helpful for all the startups and new small scale businesses. Have any doubt; research for them deeper.