Startups can only achieve success and reach a unique position when they move in the right direction. To provide them support with a growth mindset, business/startups incubators are gaining huge popularity across the globe. According to a US-based International Business Association – there are around 7000 business incubators worldwide.
Usually, early-stage startups have limited resources and expertise to execute a billion-dollar business idea. That’s where incubators play an integral role to provide the direction and supportive framework to innovate and take the business idea to the market.
From nurturing young entrepreneurs and their startups to providing useful resources including office space, R&D Labs, hands-on management training, marketing support and access to investors, business incubators help founders in many ways to bootstrap a startup.
Idea validation
Every startup founder tries his/her best to come up with a revolutionary business idea. They often consider the idea that can disrupt the market and aim for becoming one of a kind in the industry. However, every founder needs to be careful before launching and validating the idea. They must follow an approach that can minimize risks and costs in setting up the business with a maximised success rate.
Mentorship
In order to build a sustainable and financially viable business, startup entrepreneurs need mentoring. Incubators that mentor startups often report a higher rate of success and attain a huge wealth of knowledge. They are provided with the benefits of increased productivity, problem-solving abilities and improved business performance.
Networking opportunities
Networking is the ability to find new customers, partners and investors to grow the business. Business incubators can gear the business growth for early-stage startups by fostering networks. Their potential to link with people or lab space to provide valuable support and connections to set up a sustainable business.
Workspace & pool of shared resources
Unlike large enterprises or corporates, early-stage startups do not have deep pockets. They face challenges in renting out an office space or utilizing important resources. Entrepreneurs with the support of a business incubator can get access to a decent workspace where they can brainstorm and craft impactful business ideas.
Support with fundraising strategies
Early-stage startups after developing a viable business idea require funds. They are necessary for further expansion and scalability. Without a business incubator, it becomes difficult for startup founders to reach potential investors and pitch their idea. On the other hand, business incubators have strong links with angel investors and venture capitalists and can help the founders in crafting a winning pitch and reaching out into investor meetings.
Market estimates suggest – around 90 per cent of Indian startups fail within the first five years of their inception. Thus, support from business incubators can turn innovative business ideas into reality and increase the startup success rate.
The writer is Dr Manisha Acharya, CEO, Center of Innovation & Incubation(CII)