What is a Business Incubator?
A business incubator is a program offered with the sole purpose of supporting the establishment and growth of small businesses by offering support services to entrepreneurs.
Support services offered can include fully equipped working space, technical assistance, advice, coaching and mentorship. Most business incubators offer this support to early stage entrepreneurs running startup companies and who do not have adequate finances to pay for such services. The aim in most cases is to support the growth of Small and Medium Enterprises (SMEs).
The ownership and funding of incubators varies, some are funded by the Government whereas others are donor funded. Some offer their services for free while others charge a subsidised fee for all or selected services.
Whereas most incubators offer their services to entrepreneurs from any sector, such as the Burundi Business Incubator, some incubators like Rwanda’s Technology and Business Incubation Facility (TBIF) and Nigeria’s L5Labs focus on technology based entrepreneurs only.
Technology incubators support businesses that revolve around Information and Communication Technologies (ICTs) by offering them business management skills, internet connectivity and technical hardware needed to come up with innovations.
One of the advantages of joining an incubator is that you get to meet experts who can help you find solutions to the specific challenges you face. Due to the connections the incubators have with financiers and specifically Venture Capital Fund Managers, you will also receive help accessing financing. Most Incubators also organise pitch sessions, where incubates (the entrepreneurs) pitch before a panel of prospective financiers.
The other benefit is capacity building and networking. Business incubators organise short training sessions touching on areas like business plan writing, management, marketing and research which come in handy in the running of your business.
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