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Business Incubator: The Business Incubator

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The Business Incubator
Paul Addy
ENT 101 Discover the Entrepreneur Within 22236306
Jason Ratledge
February 16, 2014

This analysis will begin by answering the first question that may come to mind when discussing business incubators; what is a business incubator? A business incubator can be thought of as the fastest way to get an idea for a business venture from the drawing board to the operational phase. Typically incubators are geared towards the early stages of developing a business or the pre-revenue stage of development. A more traditional business incubator may be focused on office space. Office based incubators could provide a small office or cubicle and allow the entrepreneur to use additional typical office amenities such as meeting rooms, copy machines, fax machines, and internet in a professional setting. The cost of rent is typically cheaper than market rates and sometimes even free. Business incubators can be managed by real-estate landlords looking to fill empty office space, fellow entrepreneurs looking to network common interests, or economic development partners looking to revitalize a particular geographical area. Business incubators can provide services and networks specifically tailored to the entrepreneurs needs while developing their venture. These services can include mentors, referrals for legal and licensing questions, attorneys, service providers, as well as expert advice from business men and women who have experience navigating the everyday realities of running a business. Business incubators can also be geared towards technology in the form of sprawling industrial parks or scientific based laboratory facilities in a University setting. In addition to the traditional business incubator there are o...

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...nce, only accepts 1% of nearly 4,000 applications each year and of those admitted nearly 80% go on to raise venture capital or make a significant angel funding round (Geron, Mac 2011). In the case of Y Combinator, the world’s largest business incubator, some of their entrepreneurs who start with them already have a product built before even starting (Geron, Mac 2011). Much like the art of entrepreneurship, the stage of business, whether in the start-up phase or funding phase, a mix of both, or simply looking for mentorship in helping develop a business plan as a whole, a business incubator could be the difference between success and failure. Extremely successful business incubators can literally be found all over the United States (Tiku, Joyner 2010). If an entrepreneur does their research they can find a business incubator that is right for their business venture.
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