Importance of Business Incubation Process in Market
Business incubator process supports the citizens, as it is a process which aims to bring the improvement in the life of the citizens, the primary goal of this process is to give advantages to the entrepreneurs, the business is being supported with the competitiveness so that the economic goals could be achieved. However, not only opportunities are given but people are also empowered for the sustainability and better results in the country, it is emphasized that sustainability comes should be created so that the population of the country can come out of the economic challenged or the problems which are being faced by the people of any country. Moreover, it is a traditional model, which has the mission to sustain the country economic growth (Francesco & Marco, 2014).
The help is given to the entrepreneurs; their innovation or new ideas, products or services and processes are focused, so the customer’s attention could grab towards the new businesses. The business or business incubators process has gone through the market condition, they are known to the customers and their perceptions that what customers will like, all preferences are already known, so maximum benefits could be achieved with the help old businesses. The improvement models are also provided by the business so that competitive position can be achieved in the market, a more competitive position is focused or the maximum market share can bring more profitabilities for the companies and the economy.
The companies, which are already stable in the market, emphasis more on the innovation process and on R&D because they know that to grow in today’s economy, it is important. Business incubator process is helpful for the companies; sometimes innovation or innovation is not good for the entrepreneurs because there are fears that how customers will perceive the new product or new company. The interventions, which are linked to the innovation or entrepreneurship, are growth oriented and helpful for the developing countries as the new ideas are given in the market. For the sales revenue and profitability, incubator is seen as the enterprise creation and the growth. This process plays an important role in supporting the industries and the government (Lussier & Sonfield, 2016). However, marketers and policy makers have also accepted the effective effects of this model as innovative entrepreneurship is enabled through the process.
There are unique positions of the business incubators in the market; the effectiveness is there for the business, which could be directly or indirectly, in the ecosystem, the benefits are seen of the process. However, at the early stage, there are more benefits, which could be seen by the business process because at the beginning guidance is more important, the emphasis could be on the locations because to reach the performance or the desired level, location can be served as an advantage to the entrepreneurs. Strategic or operational support is also focused, as by using the effective strategies effectiveness could be gained in the new business. Opportunities are there in the market, for the entrepreneurs, and they can get the advantages and benefits in the market if there is proper and clear guidance that what needed to be done. Business incubators can manage or create the effective relationship across the economy.
The valuable feedback by the business incubator is important for the dealing of the business, there are the opportunities for the new business people or entrepreneurs as challenges and opportunities are identified, there could be positive changes in the business process. However, at the early entrepreneurial stage, the innovators and investors have to focus on the potential business ideas. The process of business or industry incubation is selective. Assistance is provided as an idea, in the pre-incubation process, the main reason of the pre-incubation process is to involve the entrepreneurs in their new business, the less involvement by the incubation involves the entrepreneurs to more focus upon the business and they become able to investigate the business before starting it.
For the business growth, business incubators can measure the growth, the firms should be innovative, throughout the process, so the services should be served more effectively, the business incubator can be the effective tool, to promote the enterprises, it is important to set the objectives, so the outcomes could be achieved. It is needed to give the training to the entrepreneurs so they can be prepared for the future tasks (AL-Mubaraki & Busler, 2014). The training is a part of management, the management requires to give the training to the people should be trained properly.
The services need to be given for the betterment of the new business, the incubators give the services which include the shared infrastructure, example it includes the infrastructure, meeting rooms, telecommunication, electricity etc. In the services, business advisory and financial services are also included, in the business advisory; there could be the discussion about the management issues, which could be related to finance and business planning, formal matters etc. The financial survives can vary business to business; financial services are given according to the scale of the business, the small scale new business may require the small investment or less finance, there are brokering services etc.
Resource people are connected to each other’s, as they are business professionals so for them to share the knowledge is important, in the business relationships there is more focus on the opportunities, which can be given to each other. The business can face the challenges from the stakeholders or the clients, there are clients with a different culture and in this case, the businesses, which are supporting the new business or the entrepreneurs, can be helpful. The incubation staff plays important roles in the new business processes, as they are already aware of the market, the psychological support is provided by the incubators. Incubators know that how they can psychologically grab the entrepreneurs; they give motivation to the new marketers and say them to believe in you so you can be committed.
There is effectiveness in the business incubation, they motivate and create the number of enterprises, and there are possibilities of the growth. The more focus on the business can increase the revenue size, viability, growth rate etc. There is assistance and by the incubation that varies on objectives, if the desired outcomes or results that are attained are different from what one expected then there are remedies which could also give by the incubators. Incubation seems as enabling tools, the awareness is given and working is promoted, there are struggles in the businesses, however, with the help of the incubators businesses can be successful. Moreover, in the developing countries, there are more struggles for the companies, because people or customers have different cultures and do not have the awareness of the products or services (Su, Zhou, Liu, & Kong, 2015). The new companies may have to face challenges as they enter the market, the assessment of the market and cultures can give the better results.
Different researchers have done researchers on the effectiveness of the incubator, that how much businesses could be affected by doing the innovation, there are many key challenges which a company or new business can face in the market. For the new businesses, as they enter the market, it is difficult for them to face the challenges, as they are not aware of the customers; in this case, there could be strategic challenges, which can be sort out with the help of the incubators. There is list of challenges that are being noticed by the researcher’s examples, the financial sustainability and or new location etc. In the developing countries, the list of the challenges is greater, as there are problems in deciding the prices, entrepreneurs have the fear of setting the prices and knowing the culture of the people. Incubators can be helpful as they can set up the business in a way that can be operated as a business-minded fashion, every business have core objectives regarding to the business, which is developed to satisfy the needs of the potential market, however, business incubators can set these core objectives, in order to satisfy the local market needs.
While doing the analysis of the research topic it is being considered that innovation is a key to progress, for every entrepreneur, to do innovation is as important as the profitability because profitability or targets cannot be achieved if there is no innovation. Through innovation, benefits are there for the social and economic growth. In the developing countries, it is more important to consider innovation and planning, however, incubated ventures can test the sustainability of innovation of new product or services in the market, the willingness of the incubators and the entrepreneur together forms an incubator’s models, which can give benefit from every aspect in the future (Bijaoui, 2015).
Bringing new ideas to the market can be difficult, but entrepreneur need to take risks of they want success in the market, innovation can give the better result from the stakeholders. Entrepreneurs need to have the ambitions or potential to survive in the market, business incubation can serve as vehicles for providing the assistance to the new business, there is the need to recognize the real importance of social and economic aspects in the countries. However, through doing the efforts and through making commitments, new business can emerge in the market. For the betterment of the economies and to enable the environment of business in the market, incubation can serve as an important function, because there could be public and private investments, in the large population of the countries. There could be potential entrepreneurs and they can give benefits to the countries, there is the need to recognize the importance of incubation process so the young entrepreneurs can be supported or given assistance by already existing companies or businesses.