Accelerate Your Start-up Game - by Dr. Manisha Acharya, India, CII, Utkal University

Accelerate Your Startup Game

Market estimates suggest – around 90% of start-ups fail within the first five years of their inception.

Entrepreneurial Serendipity Contest, IG 2021 - Water Splash

Here is how support from business incubators can help first-time entrepreneurs turn innovative ideas into reality and increase the startup success rate.

Startups can only achieve success and reach a unique position when they move in the right direction.

Startup: What All About

To provide them support with a growth mindset, business/startups incubators are gaining huge popularity across the globe. According to a US-based Business Incubation Association – there are around 7000 business incubators worldwide.

Usually, early-stage startups have limited resources and expertise to execute a billion-dollar business idea.

That’s where incubators play an integral role to provide the direction and supportive framework to innovate and take the business idea to the market.

All About Business Incubators

From nurturing young entrepreneurs and their startups to providing useful resources including office space, R&D Labs, hands-on management training, marketing support and access to investors, business incubators help founders in many ways to bootstrap a startup.

Idea Validation

Every startup founder tries his/her best to come up with a revolutionary business idea. They often consider the idea that can disrupt the market and aim for becoming one of a kind in the industry. However, every founder needs to be careful before launching and validating the idea. They must follow an approach that can minimize risks and costs in setting up the business with a maximized success rate.

A business incubator helps the founder in finding a problem that is worth solving through a revolutionary concept or product.

Idea: Find and Evaluate

Additionally, they focus on selling and the core market landscape to help founders create a market fit product.

Mentorship

In order to build a sustainable and financially viable business, startup entrepreneurs need mentoring. Incubators that mentor startups often report a higher rate of success and attain a huge wealth of knowledge. They are provided with the benefits of increased productivity, problem-solving abilities and improved business performance.

A good business mentor having experience in building up a successful business from the scratch is a great sounding board. With their experience, founders can iron out several issues in finances, business operations, expansion, product development and marketing.

Networking Opportunities

Networking is the ability to find new customers, partners and investors to grow the business. Business incubators can gear the business growth for early-stage startups by fostering networks. Their potential to link with people or lab space to provide valuable support and connections to set up a sustainable business.

Furthermore, a business incubator identifies the most relevant practices of networking that help startups acquire new business leads. In addition, it focuses on updating the founders with new trends in attracting influential people for their startup that play a crucial role in making strong business connections.

Workspace & Pool of Shared Resources

Unlike large enterprises or corporates, early-stage startups do not have deep pockets. They face challenges in renting out an office space or utilizing important resources. Entrepreneurs with the support of a business incubator can get access to a decent workspace where they can brainstorm and craft impactful business ideas.

Apart from office space, few business incubators also provide R&D and lab support that help founders in the faster realization of their business idea. Moreover, the founders get the opportunity to network with like-minded innovators and take advantage of utilities and cost-efficiency.

Support with Fundraising Strategies

Early-stage startups after developing a viable business idea require funds. They are necessary for further expansion and scalability.

Without a business incubator, it becomes difficult for startup founders to reach potential investors and pitch their idea.

Finding Investors in the early age of startups

On the other hand, business incubators have strong links with angel investors and venture capitalists and can help the founders in crafting a winning pitch and reaching out into investor meetings.

In a competitive market landscape like the present economy, the rate of failure for early startups is high. Market estimates suggest – around 90% of Indian startups fail within the first five years of their inception. Thus, support from business incubators can turn innovative business ideas into reality and increase the startup success rate.

Innovation promotion is a compulsion, not an option.

Manisha Acharya

Dr. Manisha Acharia, India,Miss Innovation World 2021 award winner, Innompic Games, CII Director, business incubator

Dr Manisha Acharya is CEO of the Center for Innovation & Incubation (CII) Utkal University, Odisha, India. She is also a Startup Advisor & Mentor, and British Chevening CRISP Fellow at University of Oxford.