Page 1 of 8
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 13
December 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 363
Incubators as Enablers for Academic
Entrepreneurship
Rohtas
Research Scholar, Institute of Management Studies and Research Maharshi Dayanand
University, Rohtak
E-mail: rohtasnarwal1977@gmail.com
Abstract
Purpose – The purpose of this research paper is to explore the role of business incubation
centers in promoting the entrepreneurship and startups in India. Today’s business environment
business incubation center may be millstone in growth of entrepreneurship and startups.
Design/ methodology/approach – For the research purpose, exploratory and descriptive
research design has been adopted. For accomplishment of research objective, data has been
collected from authentic reports of government of India and various bodies, websites and
journals.
Findings – Findings of study suggest that business incubation centers may play significant role
in growth of economy of India. Business incubation centers give various types of business
support services and resources, which include: management guidance, technical advice,
consulting, appropriate rental space, shared basic business services and equipment, networking
support, marketing assistance, and financing necessary for company growth.
Originality/value – The research paper give unique insights on role of business incubation
centers in promoting startups. To best of our knowledge, very few studies have been conducted to
explore the role of business incubation centers in supporting startups.
Keywords – Business incubators, academic, entrepreneurship
Paper type- Research Paper
1. Introduction
Startup
Startup is defined as “an entrepreneurial
venture or a new business in the form of a
Company, a partnership or temporary
organization designed and search of a
repeatable and scalable business model.”
Startup India brings excitement and
immense possibilities for the future. India
acknowledged the stark reality of modern
business and its complexity. The Central
government tried to address the problems
faced by the young, entrepreneurial Indian,
whose risk taking ability is unparalleled
across the globe. Policy paralysis and lack
of transparency were just few of the
bottlenecks faced by the entrepreneur.
Technology has a predefined role to play in
Startups. The Internet-led industry
contributes $30 billion today, which is a
fraction of the $250 billion by 2020. USA
internet business could grow from $240
Page 2 of 8
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 13
December 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 364
trillion today to $3.5 trillion and China from
$700 billion to 1.5 trillion during the same
period. The sheer size of change that
Startups can choose to bring is mammoth
and exponential. Startups do not wish to be
chained and caged by existing laws. They
like to flourish in an atmosphere of trust and
transparency, hope and freedom. What the
current dispensation in India has done, is to
articulate their thoughts. The Silicon Valley
entrepreneurs have made their work speak.
The indomitable spirit of the young Indian,
full of verve and energy, is seeing an
inspiring transformation unfold in their own
country. The document rolled out to young
entrepreneurs is exhaustive and has an eye
for detail.
Startup India has been promised an initial
capital of 10K crore over a period of four
years from the government. This seed
capital is capable of attracting tenfold
investment by 2022. Credit guarantee for
startup lending is another booster. Startup
plan unfolded on January 16, 2016 in front
of domestic and international entrepreneurs.
Internet-based businesses from food to
fashion, health to education, and travel to
payment platforms- all have taken Centre
stage recently.
Business Incubation Centers
Business incubators are designed to nurture
the development of newly formed
entrepreneurial companies by providing
them with an array of targeted business
support services and resources, which
include: management guidance, technical
advice, consulting, appropriate rental space,
shared basic business services and
equipment, networking support, marketing
assistance, and financing necessary for
company growth. The most common goals
of incubation programs are to improve the
survival and growth of new start up firms
substantially, create jobs and wealth,
enhance entrepreneurial climate, create and
retain businesses, commercialize new
technologies, build or accelerate growth in a
local industry, and diversify economies. The
earliest incubation programs focused on a
variety of technology companies or on a
combination of light industrial, technology
and service firms. However, in more recent
years, they are targeting industries such as
food processing, medical technologies,
space and ceramics technologies, arts and
crafts, telecommunications and software
development. Incubator sponsors have also
focused on microenterprise creation, the
needs of women and minorities, and
environmental endeavors. Although the
business incubation centers have come of
age, the unavailability of adequate and
reliable information about them is a major
concern which needs to be addressed.
Business incubators originated in the United
States of America and the first incubator
came into being in an abandoned Massey
Ferguson manufacturing plant in Batavia in
1959. A number of initiatives were
undertaken between 1985 and 1995 to
strengthen the incubation movement and as
a result, it evolved into an ecosystem with a
plethora of models ranging from public to
private incubators.
While the Indian Government is trying to
aggressively promote entrepreneurship, the
entrepreneurs continue to face numerous
challenges and the new venture failure rate
is very high. In view of this, the Business
Incubation Centers have assumed a lot of
significance as they provide an enabling
environment to deal with the difficulties in
the process of entrepreneurship by providing
comprehensive and integrated support to the
Page 3 of 8
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 03 Issue 13
December 2017
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 365
entrepreneurs, thereby reducing the new
venture failure rate substantially. These
Centers provide start-up businesses with a
variety of services such as physical space,
office equipment, business services,
management guidance and an enabling
environment to facilitate their development
until they are capable of surviving on their
own after exit from the incubator. At the
macro level, they regenerate public
confidence in entrepreneurship and help
create an entrepreneurial environment.
So far as the Indian scenario is concerned,
the National Science and Technology
Entrepreneurship Development Board
(NSTEDB) launched the Science and
Technology Entrepreneurs Parks (STEP) in
the early 1980’s, and the Technology
Business Incubators (TBI) in the beginning
of 2000 1
. Our country has nearly 120
incubators and science parks which have
nurtured over 1150 entrepreneurs up to
20082
. NSTEDB has so far created 53 TBIs
in collaboration with premier academic and
research institutes with an investment of Rs.
100 crores and the cumulative revenue
generated by these incubated enterprises
now stands at Rs. 595 crores. Although no
comprehensive study has been carried out to
measure the impact of these mechanisms put
together, the estimates are that all these
incubators help to graduate about 500
enterprises every year and out of these, 60
per cent are technology based startups. The
report of the Working Group on science and
1
Government of India, ‘Status Report on Technology
Business Incubators’ Department of Science &
Technology, National Science and Technology
Entrepreneurship Development Board
2
Government of India, ‘Conceptual Document on
Technology Business Incubators-Developing Eco System
for Knowledge to Wealth Creation’, Department of Science
& Technology, National Science and Technology
Entrepreneurship Development Board
technology for small and medium scale
enterprises for the Eleventh Five Year Plan
(2007-2012) recommends that a total of 170
Technology Business Incubators and 50
Technology Innovation Centers should be
set up with a total outlay of Rs. 1100 Crore.
