Young entrepreneurs look after the other startups

Incubator


1. term: Establishment that is intended to promote the growth and survival chances of the start-up companies located in the center by providing business premises, infrastructure and services, mostly with the help of public funds.

2. features: A start-up center is characterized by the support of innovative, newly founded companies in overcoming typical problems in the start-up phase. In addition to commercial space and services, it also provides them with help in the form of advice and support in one or more buildings. Most start-up centers are run by public institutions such as municipalities, but private funding is also possible. Special funding programs from the municipalities or the federal government also support the work of the centers.

3. Differentiation from other similar terms: The term “start-up center” is closely based on the American “Incubator Concept”. According to this, the aim of incubators is to give young companies intensive support in their establishment and further development. In addition to start-up centers, there are various other organizational forms of incubators. However, these are often defined differently in the literature, so that a clear classification of the terms is difficult. However, the mentioned entrepreneurial target group (technology orientation and degree of maturity of the resident companies) as well as the scope of the services provided can be named as distinguishing features. Compared to start-up centers, technology centers have a clearer focus on promoting research and technology-oriented companies, but also look after them at the beginning of their development phase. The literature mostly speaks of technology and start-up centers (TGZ) whose focus is then on promoting companies in the start-up phase, regardless of their technology orientation. In contrast to this, after the start-up phase, companies are located in science parks or technology parks that are no longer dependent on public subsidies (public subsidies), but are very research and development-oriented. The term innovation center is generally understood very broadly and includes all of the above-mentioned types of funding institutions. In general it can be stated that the addition “park” in the literature mostly represents a rather loose collection of companies after the start-up phase on available commercial space. If, on the other hand, we are talking about a “center”, we are talking about funding institutions for young companies with a correspondingly more comprehensive range of support services.

4. aims: The aim of start-up centers is to find, select and promote entrepreneurial initiatives and their ongoing support. The aim is not only to encourage potential founders to set up companies, but above all to improve the success of newly founded companies. The founders should be given assistance in converting their innovative ideas into marketable products, processes or services. As a regional political instrument of economic development, start-up centers are intended to promote the creation of qualified jobs and thus also strengthen the attractiveness of the location so that existing know-how in the region is retained. The knowledge, information and technology transfer between science and practice is sustainably strengthened by the work of the start-up centers, which can then also support other regional companies.

5. Instruments / measures of the incubators: Start-up centers try to stimulate the establishment of new companies through extensive public relations work and offers such as start-up seminars, workshops or contact fairs. The announcement of innovation or inventor prizes and business plan competitions are also intended to appeal to potential founders. Once the decision to implement a business idea has been made, business incubators then help with the detailed development of the company design. When starting business, start-up centers support their resident companies by providing inexpensive rental space that can be variably expanded as required. Many organizational problems of start-ups are resolved by a professional infrastructure with communal facilities such as conference rooms, computers, fax machines, and services such as bookkeeping or handling of tax matters. The advisory services are also an important component in the support concept of start-up centers. The start-ups can get professional advice on business plans or financing issues and are referred to specialized consultants if necessary. In order to keep the organization of their companies under control, the founders are supported by managers who sensitize them to business problem areas through marketing advice, further training and seminars. It should not be underestimated that in addition to the business incubator’s valuable contacts with business partners, universities, customers or suppliers, the companies also benefit from the incubator’s positive image, e.g. when raising capital.

From the "Gabler Kompakt-Lexikon Entrepreneurship: Look up, understand, apply 2,000 terms". The Gabler compact encyclopedia company start-up offers over 2,000 current definitions of terms on the topics of start-up planning / process / management, business models / concepts / development as well as corporate finance and funding programs. Editor Professor Dr. Tobias Kollmann is a recognized expert for all questions relating to business start-ups and development. The target group of the lexicon are company founders, start-up consultants, venture capital companies, investment managers, business consultants as well as students and lecturers in economics at technical colleges and universities. Order now from amazon