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Incubators represent an ideal place to start a business. Incubators normally provide technopreneurs with reasonable rental rates and provide business-consulting services, networks and access to capital.
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How could I benefit from starting my venture in an incubator? |
At an incubator, there are many benefits that you could enjoy. These include:
- Office space which is made available on an affordable but temporary basis with expandable space on a flexible lease all under one roof
- Common services, including secretarial support and shared use of office equipment and machinery
- Hands-on business counseling with regards to business planning, training in management skills, as well as access to specialized assistance such as R&D support and venture capital
- Networking activities among entrepreneurs inside the premises and beyond to the local community
- Access to venture capital and seed funding
- After-care and outreach services, providing assistance to tenants after they graduate
 
A business incubator is an organization that helps entrepreneurs to develop their ideas in a framework that has been established to help them. It takes them systematically from inception through to launch and beyond.
It can assist a new business at start-up and in its early growth to help turn it into a successful new enterprise. It provides them with a comprehensive and integrated range of services.
Business incubation is a dynamic process of business enterprise development. Incubators nurture young firms, helping them to survive and grow during the start-up period when they are most vulnerable.
Incubators provide hands-on management assistance, access to financing and orchestrated exposure to critical business or technical support services. An incubation program's main goal is to produce successful graduates - businesses that are financially viable and freestanding when they leave the incubator usually in two to three years.
Taking the US experience as a guide, 30% of incubator clients typically graduate each year and about 87% of incubator graduates are still in business several years later.
By providing entrepreneurs with services on a one-stop basis, and enabling tenants to reduce their overhead costs by sharing facilities, business incubators are able to significantly improve the survival and growth prospects of new start-ups.
A technology-incubating program is an innovative system designed to assist entrepreneurs in the development of new technology-based firms, both start-ups and fledglings. It seeks to effectively link talent, technology, capital and know-how to leverage entrepreneurial talent in order to accelerate the development of new companies, and thus speed the commercialization of technology.
The special emphasis is on providing assistance directly from the technology sector, relevant Government Departments and from the universities. Links directly to the MSC enhance the benefits to new technology oriented companies.
Internet Incubators have distinct differences from other Business or Technology Incubators. Many in the U.S. are run by venture capitalists. Like traditional VCs, they provide financing for start-ups in exchange for equity; but, unlike traditional VCs, they provide on-site guidance. And since they work at Internet speed, their start-ups develop quickly into sizeable companies. It's all about speed.
In Malaysia, incubator ownership varies.
1. Cyberjaya - The MSC Central Incubator
2. Teknology Park Malaysia
3. Kulim Hi-tech Industrial Park
4. Johor Incubator Center
5. Cyberjaya - BT Multimedia
6. Kuala Lumpur - Resource Centre Technology Park
7. Serdang - UPM - MTDC Technology Incubation Centre
8. UTM - MTDC
9. Bangi - Malaysian Bio Diagnostic Research
10. UUM - MTDC - Advanced Electronic
11. Kuala Lumpur - OptixLab
12. Kuala Lumpur - YTL e-Solutions
13. Skudai - Bureau of Innovation and Consultancy
14. Shah Alam - Small and Medium Industries Development Department
15. Penang - Usians Holding
An incubator is there to nurture young enterprises to a level of maturity. The period of incubation varies, from 12 months to two years, depending on the enterprise and the speed at which the technology is to be commercialized.
The key role of an incubator is to leverage entrepreneurship. The entrepreneur and enterprise should therefore, grow to a level of competency that allows the enterprise to be established as a self-standing entity.
By so doing, it makes way for the entry of new start-ups into the incubator.
The lessons learned and the experience gained at the incubator should equip you with the confidence and ability to establish yourself outside the incubator. By that time, you will be ready to market your product or technology without its support.
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