Introduction to Business Incubation

Professor K Ramachandran

Indian School of Business

Gachibowli, Hyderabad

Low Criticality

High

Criticality

High Discontent

Low Discontent

What is a good opportunity

Market opportunity

Financial Attractiveness Strategy (source, cost, availability, adequacy)

Marketing Attractiveness Strategy (size, Entry, Sustenance)

Entrepreneurial Capability Strategy (Attitude, Skills, Knowledge pool/network – individual/group)

Technical Attractiveness Strategy (Existing/new technology and products/services)

Motivaton

Attitude

Opportunity

Idea Planning

Start - up

Growth

Stabilisation

FLC and Capability mix at different stages

t

$

S

W

O

T

Labs / Incubators Need Capabilities

• Business Attitude• Business Skills• Business Knowledge• Mentoring• Funds to experiment, learn, improve• Facilities• Dynamic contact network

Mentoring Start ups

• What are the challenges faced by start ups?

– Emotional traumas– Lack of knowledge in a number of non-

technical but critical areas– Resource shortage– Ability to execute

ISB K-Hub – Creating entrepreneurial successes

ISB

K - Hub

Firm

Seed Finance through

Germination Fund

Develop/ Build Business Strategy

Enhance Entrepreneurial

Capability

Access/ Refine Technology

Firm success

Right product-market choice

Right strategies

Right mix of resources

Knowledge and access to resource providers

ISB K-Hub Client entry and progress

ISB K - Hub

Referrals from

Technology centres Venture capitalists Network partners

Direct from

Entrepreneurs

Incubation Mentoring

Advisory Support

BDS Providers

Universities

R&D CentresIncubators

VCs Mentors

Angels

ConsultantsISB Internal K-Hub Staff

Student teams Academics

External Network Partners

Evaluation

Key Capabilities

• Attitude – Listen, help, stretch, think creatively and positively, flexibility, learning, empathy

• Skills – Communication, diagnostic, problem solving

• Knowledge – General Practioner of technology and management

• Common sense

Incubator - evolution

1970s 1980s 1990s 2000s

Industrial Estates

Industrial Estates

STEPs

Industrial Estates

Industrial Estates

STEPs STEPs

TBIs/Specialised Incubators

TBIs/Specialised Incubators

Virtual Incubators

Thank You