YOGYAKARTA – Business incubation is a program that can be used by entrepreneurs in developing their startup businesses. Unfortunately, not many people know about business incubation. For more details, see the following explanation.
Definition of Business Incubation
In a business context, incubation can be interpreted as a coaching process related to business development efforts. On the official website of the RI POM Agency, it is explained that incubation is a coaching process intended for small businesses or new product development by business incubators.
Meanwhile, business incubators are institutions that offer programs to support startup businesses. The support itself usually takes the form of providing business facilities and infrastructure, business development, to management, and technology support for MSMEs.
According to Article 1 in Presidential Decree No. 27 of 2013 Concerning Entrepreneurial Incubator Development it is said that incubation is a process of coaching, mentoring, and development provided by the Entrepreneurial Incubator to Incubator Participants (Tenants)
In practice, business incubation usually takes the form of guidance to mentoring to develop ideas that run for a certain period of time, maybe one or two years. Business incubation is carried out by incubators. Several incubators also united in one association which was named the Association of Indonesian Business Incubators (AIBI).
Business Incubator Benefits
There are 94 members of AIBI who are business incubators located in various tertiary institutions and Regional Research and Development Centers. The benefits of a business incubator are as follows.
- Conduct new business coaching, especially related to business networks
- Provide space for capital assistance
- Introducing and assisting the implementation of investment management
- Mentoring
- Sharing matters relating to the business world such as information related to business policies
- Help develop business ideas and strategies
Benefits of Following Business Incubation
As previously mentioned, business incubation programs can be used by novice entrepreneurs in starting their businesses. The business incubator "space" will provide various benefits, especially for startups.
Startup companies or startups will usually share many things such as telephones, offices, production equipment, and various other operational needs with other startup companies.
In general, the benefits of participating in business incubation are as follows.
- Gain important access related to business development
- Ease of learning related to the business being carried out
- Get a discussion partner who has more experience
- It's easier to get investors for your business so this program is suitable for entrepreneurs who are about to set up a startup
- Get lots of relationships
- Get monitoring and mentoring while running the business
How a Business Incubator Works
During the incubation period, there are several stages of work that must be passed so that the business can grow faster. The stages are divided into three as follows.
- Pre-incubation
Pre-incubation is the initial phase for entrepreneurs. At this stage, the businessman will strengthen the foundation that supports the business, one of which is a business plan. Before registering with the incubator, prospective participants must prepare ownership documents, and proposals, including matters related to finance.
- Incubation
After the requirements have been met by the business owner, an assessment will be carried out. If fulfilled and accepted by the business incubator, entrepreneurs can start the incubation stage. In this phase, business people will get various facilities.
- Post-incubation
At this stage, the business should have started to show its development and the business can run independently. Entrepreneurs can practice what they get during the incubation phase.
Business incubation is a stage that can help startup or startup business owners develop more. Visit VOI.ID for other interesting information.
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