Business Incubators in

India
Anshul Saxena
CINE
 What are Business Incubators
 Incubation is a dynamic process of business
development.
 Incubators nurture young firms, helping them to
survive in their early stage.
 Incubators provide:
 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

 For Tenant Companies

 For Corporate World
 The new technology / product gets developed
 Informed investment choice
 Possibilities for takeover
 For Govt.
 Economic development
 Social benefits
 Encouragement to innovate
 Model

 Linear Model of Innovation:

 Origin of all innovation lies in Research activities
 Role of universities
 Since Universities receive Govt. grant, so ideas
of current national interest incubated
 Apart from R&D support, managerial support
also required to develop business
 Commercial feasibility to the ideas
 Networks in suitable places can prove handy
 Indian Scenario
 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
 Example
 Main Activities of SINE are to:

 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
 Remarkable Govt. initiative
 Special incubator in software sector
 Objectives of STPs are
 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

 Extensive network of incubators

 Incubators in or near by famous universities
 Provides technical and R&D support
 Some expertise to offer
 Management
 Technological
 Networks
 In fact, Incubators position themselves according
to the additional expertise they offer
 Platform to pitch to VCs and PE funds
 Help in preparing pitches
 Incubators have some VCs as either stakeholders or
Board members
 Incubators develop good track record and rapport with
certain VCs
 Network among Incubators
 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.
 Govt. assistance
 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

 Govt. initiatives to develop incubators

 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
 Incubators can be segmented according to the
ideas they incubate.
 Infrastructure
 Taking one step forward
 Good infrastructure: a hygiene factor to companies
Thank You !!