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Introduction to:
Innovation and Creativity
BY KAMAL M. AL MASRI
Course code: ::::.BEAD4312..::::
Israa University Gaza
Faculty of Managerial and Financial Sciences
Departmentof Management
Chapter 07a: Business
Incubators

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ILO’s
Discuss the importance of business incubators.
Discover the existing business incubators in
Palestine.
Explain the models of funding incubators.
Contrast the types of incubators.

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Introduction
 The term “incubator”, “business incubator” or “technology
incubator” refers to a programmes destined to support new ideas
and help them become successful businesses.
 They are operated or sponsored by private or public entities.
 They may have different organizational or legal forms:
 association, public center, academic unit, private company, ….
 The National Business Incubation Association (NBIA) defines
business incubators as a catalyst tool for either regional or
national economic development.

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Goal
To help in creating and growing
young businesses by providing
necessary financial and technical
support.
 to increase the chance that a start-up succeed,
 and shorten the time and reduce the cost of
establishing and growing its business.
“transforming
an idea into a
real business”

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Services provided
 Business, accounting and legal Advice (training,
including soft skills, Property Rights,…),
 Logistics and shared premises (offices, machines and
tools),
 Networking (with different types of actors),
 Business Services and Marketing assistance (expansion
of the business),
 Mentoring (technical, scientific),

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Types of incubators..
Many types according to funding, propriety, objectives,
specialty, scope, …
NBIA categorizes their members’ incubators by the
following five incubator types: academic institutions;
non-profit development corporations; for-profit
property development ventures; venture capital
firms, and combination of the above.

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For example, from Wikipedia
 Virtual business incubator - online business incubator
 Kitchen incubator - a business incubator focused on the food industry
 Public incubator - a business incubator focused on the public good
 Seed accelerator - a business incubator focused on early startups
 Corporate accelerator - a program of a larger company that acts akin to a seed accelerator
 Startup studio - a business incubator with interacting portfolio
companies
 Technology Business Incubator - a business incubator based out
academic institutions

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The process of incubation
Many models, different stages …
We can retain theses main three phases:
 Pre incubation,
 Incubation,
 Acceleration.
 Then graduation and expansion….
 See the example of the Dar Teknohama Business Incubator
(DTBi) (here)
For each stage, specific services are
provided and specific competencies are
needed …

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In Palestine
 PICTI
 BTI
 UCAS
 Gaza Sky Geeks
 Arabreneur Palestine (Ibdaa)
 The Bethlehem Business Incubator (BBI)
 …

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Financing incubators
 Many models and methods.
 Specialists talks about more than 20 business models …
 Mainly, we have:
 Contribution of the incubated projects (lucrative, Mutualization),
 Participation/equity.
 Grants/Development funds.
 Needs a separated presentation and discussion …

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From different perspectives …
Business incubators can be seen and studied from
different perspectives:
 Incubators a socio-political game for interaction between stakeholders (in a
perspective of entrepreneurship),
 Incubators as a mechanism for resource allocation,
 Incubators as a tool of investment,
 Incubators as a study of “network behavior”, …
 …
 For more about theories and models of incubators, visit the link (here).
 Needs a separated presentation and discussion …

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Evaluation: performance, challenges
and critics of business incubators
 Sustainability (funding).
 High failure level.
 Coordination (between incubators and governmental bodies,
among incubators, …).
 Efficiency of incubators.
 Technical issues regarding equity in individuals projects.
 …

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To be continued …