A successful entrepreneur is someone who has a burning desire to find new markets and uses their resources and creativity to do so. A wide range of stakeholders—ranging from government agencies to universities—helps to support the growth of entrepreneurship. There are mentors who can give you the correct advice at the right moment, classes that can improve your understanding of how your firm can operate in the world, and funding in exchange for equity in your start-up that incubators can provide. An academic institution, a funding/investment arm like an angel group, or a business could all fit this description.
When specialized incubators, from student entrepreneurs to biotech and agriculture to connected mobility, start popping up around the country to aid businesses, you know something is developing in the world’s fastest-growing big economy. Incubators and accelerators abound in India, with over a quarter of them being either academic or independent as of December 2016.
Key role of Incubators or Accelerators
A key role that Incubators/Accelerators (I/As) can play in India’s continued growth as a start-up hub is in offering excellent mentorship and developing fledgling entrepreneurs and businesses while also providing critical technical support and raising money, among other things. All incubators, on the other hand, aren’t made equal.
For example, incubators have been known to fall short due to a lack of top-notch mentors and competent employees, as well as a lack of communication about intangible benefits like the mentorship and the usage of incubators for everyday work rather than their genuine contribution to success. Indian incubators, according to research published in the SSRN Electronic Journal, have had a good effect on and contributed to India’s economic progress. Many of the characteristics of successful incubators can, however, be adopted for more effective and productive work.
Besides alumni, mentors, culture fit, coursework, and location there are many additional things that make an incubator great. In order to better understand this, below are a few examples:
- Most accelerators give companies with the resources and connections they need to survive for at least a year. If an incubator can support a greater number of businesses for longer than a year, it should be seriously evaluated.
- If the companies that emerge from incubator programs are valued higher than their rivals, then the incubator has done its job well (at least on the part of the incubator).
- There are several rounds of fundraising. Despite the fact that raising money is not a guarantee of a company’s success, it can serve as a reasonable proxy for it. The better an incubator is, the more start-ups it has helped attain their fundraising targets a program.
- Top-level mentors and how to get the most out of them are essential for a successful incubator. It also has people who can keep up with-the trend and can help entrepreneurs with the latest developments – be it in research or partnerships.
- The Community Approach: Only a few incubators go through the painstaking and time-consuming job of developing a supportive community of entrepreneurs. Those that succeed, on the other hand, see their investments grow several times over.
- It’s possible that having multiple mentors can be a double-edged sword, but it can also be a great chance for the founder. Entrepreneurs and mentors alike profit from incubators because they may choose which start-ups they wish to engage with.
- In the long run, a person who is more of a facilitator than an operating participant but nevertheless commands the respect of founders, mentors, and partners can be a huge asset to everyone involved.
Incubators can go a long way if the economic interests of all the members are properly aligned. The Indian Angel Network is a good example of an incubator that possesses several of these characteristics. For early-stage enterprises that have the potential to produce disproportionate value, it is Asia’s largest network of Angel investors. IAN has invested in around 100 firms across a wide range of industries, including education, healthcare, QSR, e-commerce, gaming, semiconductors, robotics, manufacturing, and more. IAN has over 400 investors across 10 countries.
Incubators are merely one of several paths to success for a start-up, as is evident from the above statement. A start-up’s finest incubator will be determined by the entrepreneur, much as beauty rests in the eye of the beholder.