Benefits of business incubators
The benefits of business incubators are numerous, some of the classic characteristics and advantages are:
Shared Operating Costs - companies within a business incubator share many of the overheads including utilities, ICT infrastructure, conference facilities, administration support etc. This allows the entrepreneur to take advantage of facilities that would not normally be within the budget reach of a new start-up;
Advice & Training - an integral part of business incubation is that business owners are required to “buy into” the process by actively embracing the support, advice and training offered through the incubator;
Access to funds - incubators generally have associations with both public and private funding bodies to help maximise the level of financial assistance available;
Time Bound - for the incubation process to work the support and residency must be time limited. This means that the business arrives at the facility with an exit strategy in place. Generally the time limit within an incubator will range from 1 to 3 years;
Credibility/comradeship: businesses within an incubation facility establish a level of credibility within the market place. The fact that the company has met the criteria and been accepted into the facility offers value to potential investors, suppliers and customers. In addition, the presence of fellow entrepreneurs helps to create a dynamic networking and experience sharing environment.