A Conceptual Paper on Incubation

A Conceptual Paper on Incubation

Dr. Jigna Trivedi*

&

Dr. P.K.Priyan**

Abstract

Companies in their start up stage face umpteen struggles. A handholding support is always sought for in the initial stage. Incubators provide support services and resources to the young businesses. In fact incubators nurture the companies financially as well as technically. Incubators support the prospective entrepreneurs at the stage of the birth of the idea till the time it reaches the market. Incubators provide seed funding, mentoring support, training, marketing, strategic inputs, management and networking support to the entrepreneurs. Incubators operate on a government grants and assist entrepreneurs for follow-on funding.

Introduction

A company or facility designed to foster entrepreneurship and help start up companies, usually, technology-related, to grow through the use of shared resources, management expertise and intellectual capital is known as incubator (Investorwords, n.d.). An incubator provides support resources and services like physical space, capital, coaching, common services and networking connections. Incubator promotes innovation and entrepreneurship. Lack of early stage risk capital carries the company off the ground. Incubators enable entrepreneurs through seed-funding, incubation, mentoring, training, knowledge dissemination and best practice research. Incubation period normally starts from idea level stage and continues till pre-growth stage of the company. Incubators function on the grant obtained by the government, and they wait for longer time to avail the return. Incubators enables the entrepreneur to get all the expert advice and technical guidance that they need to survive for a longer time, unlike most other entrepreneurial ventures that fizzle out within a few months of their launch (Trak.in, n.d.). Currently there are about 100 incubation centers supported by the Indian STEP and Business Incubator Association (ISBA) which is the apex...