Many times, young graduates from different universities no longer find employment (or paid employment). A solution is for them to create their own business and generate wealth in their community. That is the great contribution of business incubation in the context of the national economy. Business incubation is classed as the “creation of micro, small and medium enterprises (MSMEs) and to support them during their early stages of life.”
Many business mentors complement this view and explain that incubation aims to create projects that have a high potential, a certain degree of innovation and that are distinguished from what already exists in the market. It’s also an area where entrepreneurs with good ideas receive counselling to generate their model and business plan, create networking and obtain resources.
For a business incubation initiative to succeed, it is essential that two factors are combined:
1. A good project, which can count on these features: a promising market, a good business opportunity, the existence of certain financial resources, knowledge and contacts; the definition of competitive advantage and the definition of needs.
2. A good entrepreneur is usually one who exhibits the following qualities: Hunger for victory, determination, leadership, keen market insight, tolerance, as well as the ability to interact.
If this combination is present, it is possible that the incubation process can begin to boost a business and earn it a place in the market; to survive beyond two years after it has been formed. A good entrepreneur will make any project succeed that comes their way, which is often not true in reverse: if there is a good project and not a good entrepreneur behind it, the best results will probably not be obtained.
The business incubation process consists of three stages: pre-incubation, incubation and post-incubation.
This process meanwhile must try and meet these steps below:
1. Selection Process. The incubators instruct the creation of an evaluation committee, to which entrepreneurs must submit their business idea.
2. Pre-incubation. During this phase, the entrepreneurs selected will receive counselling to aid their entrepreneurship.
3. Incubation. In this period, which can last from six months to a year, a mentor helps entrepreneurs to develop their business model and plan. Potential entrepreneurs also receive specialised advice on various issues: from intellectual property and funding to legal issues.
4. Creation of the company. The incubators link entrepreneurs with public networks to formalise the establishment of their business. The company starts operating.
5. Follow post-incubation. Incubators provide specific consulting on business operations, in order that it be consolidated and be successful. This support extends normally one year after the incubation process.
Many in the industry say that incubation is a service, which requires future business leaders to invest some money. They also mention that some incubators for entrepreneurs seek a stake in the shares of their companies, but this is not a general rule.
Moreover, business incubation is key to the emergence of MSMEs, which, according to recent data, suggests that they are the lifeline of the country in terms of volume business and jobs.
Therefore, it is essential that both public and private sectors work together to try and strengthen the business incubation system, such as the UKBI, operating for 16 years now.
Incubation is a very powerful tool that countries have to continue to try and grow, to generate wealth, employment and other successful growth mind-sets. When an entrepreneur creates their own company, they will change and become more responsible, a leader is a person committed their workers, their community and who takes pride in their surroundings.