A business incubator is a structure that supports startups and aspiring entrepreneurs. The incubator provides the entrepreneur with tools to implement their idea, provides all kinds of support, and creates comfortable working conditions. Some business incubators operate on a non-profit basis and are created by government or charitable organizations. For them, the point is that the money invested in developing the business will pay off for the country's economy when the entrepreneur begins full-fledged activity. If the business incubator is commercial, then in exchange for its help, the organization receives a share in the future business.
A business incubator helps small and medium-sized businesses survive, which under normal circumstances would most likely not be able to establish themselves in the market. Often entrepreneurs have good ideas, but their implementation is hindered by a lack of resources — the business incubator solves this problem. The business incubator creates a foundation for the business to develop by:
- providing legal advice to the entrepreneur, assisting in the preparation of necessary documents;
- providing the entrepreneur with the necessary equipment;
- providing a workplace in an office or coworking space; providing financial assistance to start the business;
- providing advices to help the business get on its feet;
- conducting training and seminars on finding investors, partners, and making business decisions.
To enter a business incubator, an entrepreneur needs to submit an application and participate in a competition. The incubator will select candidates with the greatest potential for development and offer them a place in the structure. Cooperation with the business incubator will continue until the start of full-fledged company operations, when the idea is already fully realized.