Business Incubators. Concepts and How do they Work?

This nugget provides a comprehensive understanding of business incubators (BIs), covering their concept, operational models, and services. Learners gain insights into the purposes of BIs, how they facilitate startup growth, and the key operations involved. The nugget explores the diverse ownership structures of BIs, including those run by universities, non-profit organizations, governments, and commercial entities. It also highlights the multifaceted environment in which BIs operate, emphasizing the potential misalignment of stakeholder interests. The evolving business models of BIs, which may involve taking equity shares or relying on public support, are discussed, emphasizing that business incubation is often not profitable but contributes to broader societal goals. The services offered by BIs, categorized into infrastructure support, operational business assistance, access to resources and networks, and goal-setting, are elucidated, showcasing the crucial role of BIs in providing a collaborative environment, mentorship, and access to capital and markets for startups.