What is a business incubator in 2018

A business incubator is a structure that specializes in creating favorable conditions for the creation and development of small venture (investment) firms engaged in the implementation of original scientific and technical projects. Such firms are provided with a wide range of consulting, information, material and other services, which helps start-up entrepreneurs to fully concentrate on the tasks and reduce the costs of maintaining the administrative apparatus.
Business incubators can act as independent structures, or be created on the basis of universities and large scientific centers. As an aid to entrepreneurs in overcoming the difficulties of the initial stage, business incubators rent them on flexible conditions for office space or production space. Lease agreements are usually concluded for a period of no more than 2–3 years, since it is believed that during this time the entrepreneur should already learn how to develop his own business and give way to a newcomer in an incubator.
The rent in the first year, as a rule, is 50-70% of the market price and includes the provision of communication and secretarial services, the use of copying equipment and daily postal service. Since several start-up entrepreneurs are located in the same room, the lease agreement provides for the joint use of a kitchen, a room for negotiations and a rest. The rent of technological equipment and machines is paid additionally, and the cost of utilities is calculated on the basis of individual consumption in proportion to the occupied area.
In addition to the preferential terms of the lease, the business incubator assists in the preparation of constituent documents and the passage of the procedure for registration of legal entities, accounting, marketing research and business planning. Novice entrepreneurs are helped to look for investors, they provide mediation in contacts with potential business partners and help in solving legal and administrative problems, provide an opportunity to improve their educational level in the framework ofbusiness activities.
The selection of future members of the business incubator is based on certain criteria. In particular, the applicant must prove that his enterprise has a real chance of success, and that the goods, works or services offered to them are competitive.

Date: 09.10.2018, 12:44 / Views: 85133

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