Business Incubators in
India
Anshul Saxena
CINE
What are Business Incubators
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Incubation is a dynamic process of business
development.
 Incubators nurture young firms, helping them to
survive in their early stage.
 Incubators provide:
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Infrastructural support i.e. office space, meeting room
Platform to do networking
Management assistance
Other support services, specific to incubators
Source: http://www.1000ventures.com/presentations/business_incubators.html
Benefits of Incubation
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For Tenant Companies
 For Corporate World
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The new technology / product gets developed
Informed investment choice
Possibilities for takeover
For Govt.
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Economic development
Social benefits
Encouragement to innovate
Model
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Linear Model of Innovation:
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Origin of all innovation lies in Research activities
Role of universities
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Since Universities receive Govt. grant, so ideas
of current national interest incubated
 Apart from R&D support, managerial support
also required to develop business
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Commercial feasibility to the ideas
Networks in suitable places can prove handy
Indian Scenario
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Incubation at nascent stage
 Mostly in a college / university, e.g.
TREC – STEP (NIT, Trichy)
 Society for innovation and entrepreneurship (IIT – B)
 Nirma Labs
 Technology Business Incubators – IITD
 TBI@KEC (Kongu Engg. college, TN)
These incubators provide technological support
 STPI (Software technology parks)
 CIIE, IIMA
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Example
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Main Activities of SINE are to:
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Incubate early stage entrepreneurial ventures based
on technology and innovation.
Create physical infrastructure and support systems
necessary for business incubation activities.
Facilitate networking with professional resources,
which include mentors, experts, consultants and
advisors for the incubatee companies.
Identify technologies/innovations which have potential
for commercial ventures.
Promote and foster the spirit of entrepreneurship.
Carry out activities that facilitate knowledge creation,
innovation and entrepreneurship activities.
STP
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Remarkable Govt. initiative
 Special incubator in software sector
 Objectives of STPs are
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To establish and manage infrastructure resources i.e.
Data communication facilities, core computer facilities
To promote development and export of software
services
Fast clearance (single window) for statutory services
To train professionals
Currently in about 34 cities across India
Taking examples from Europe
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Extensive network of incubators
 Incubators in or near by famous universities
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Some expertise to offer
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Provides technical and R&D support
Management
Technological
Networks
In fact, Incubators position themselves according
to the additional expertise they offer
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Platform to pitch to VCs and PE funds
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Network among Incubators
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Help in preparing pitches
Incubators have some VCs as either stakeholders or
Board members
Incubators develop good track record and rapport
with certain VCs
Incubators develop network among themselves
Help them in utilizing networks with VCs and other
research firms
Some examples: Manchester Business school
incubator, IT univ. of copenhagen, London
science park etc.
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Govt. assistance
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UK trade and investment (UKTI), an arm ok UK
foreign ministry works with incubators
Organizes programs wherein motivates young
companies to be part of these incubators
Also invites foreign startups
Provides Legal and other statutory services to
incubators
The way ahead
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Govt. initiatives to develop incubators
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Public-Private partnerships
Some benefits and sops to develop and manage
incubators
The return in this business (incubators) come after a gap
of time, Govt. needs to fill this gap in PPP
Indian incubators have to think beyond R&D
assistance
 Networks with VCs and other firms also required
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Incubators can be segmented according to the
ideas they incubate.
 Infrastructure
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Taking one step forward
Good infrastructure: a hygiene factor to companies
Thank You !!