Abstract CHALLENGES IN THE BUSINESS INCUBATION IN JALISCO, MEXICO. Dr. AIDA LUCIA FAJARDO MONTIEL, Universidad de Guadalajara Departamento

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1 Abstract CHALLENGES IN THE BUSINESS INCUBATION IN JALISCO, MEXICO. Dr. AIDA LUCIA FAJARDO MONTIEL, Universidad de Guadalajara Departamento de Ingeniería Industrial, Av. Revolución 1500 Modulo O Planta Alta Col. Olímpica C.P Guadalajara, Jal. México, (33) ext Prof. LUIS ANTONIO DELGADILLO GUTIERREZ Universidad de Guadalajara Departamento de Ingeniería Industrial, Av. Revolución 1500 Modulo O Planta Alta Col. Olímpica C.P Guadalajara, Jal. México, (33) ext Dr. MARIA ELENA ARMENDARIZ SILVA Universidad de Guadalajara Departamento de Ingeniería Industrial, Av. Revolución 1500 Modulo O Planta Alta Col. Olímpica C.P Guadalajara, Jal. México, (33) ext POMS 21st Annual Conference Vancouver, Canada May 7 to May 10, 2010

2 Through the CENTRO PARA LA INOVACION Y EL DESARROLLO TECNOLOGICO (IETI-CIDET) and Industrial Engineering Department the University of Guadalajara is working on incubation activities to support job creation and economic development of the state. The University is forming a special space in the CENTRO UNIVERSITARIO DE CIENCIAS EXACTAS E INGENIERIAS supported by the MODELO JALISCO EMPRENDE that promotes entrepreneurial training tools, business development and innovation, contributing to the identification of value-added opportunities to open new opportunities for companies and entrepreneurs, and support generation of jobs needed to raise living standards of Jalisco. The composition and size of the market are given by the young students and alumni in the region with entrepreneurial skills who are between 17 and 26 years, mainly found in the third year of his career. The main objectives of the incubator are: - Creating employment - Train Entrepreneurs - Create business or cause the growth of existing - To promote the existence or growth of a particular industry - Support the State's economic development. The MODELO JALISCO EMPRENDE includes 9 basic procedures, which are always

3 associated to a given activity, which will be part of a process. This process include information regarding the initial plan, incubation and post-incubation process with a training and operation methodology registered with the SECRETARIA DE PROMOCION ECONOMICA Y SECRETARIA DE ECONOMIA. The first phase incubation include the activities to get the model from SECRETARIA DE EDUCACION JALISCO, and then of course the Pre-incubation, Selection, Incubation and Postincubación process, and of course all the activities to maintain the model properly. What is and what it is not a business incubator? Business incubation considers special area this mean landing area for the process. Give support in order to get access to general and specific programs for advisory / consultancy; of course help with all the financial and investment support. A business incubator it is not a place to makes transactions or efforts by the entrepreneur (instead of) and it is not a simple lease process. There are three different incubation types, traditional, intermediate technology and High Technology. The traditional incubators work with some services and some light industry, for example, stationery, clothing and apparel, food projects and also pharmacies and so on. Of course the Virtual incubation is possible with no technological infrastructure needed.

4 The companies under the Intermediate Technology Incubators: incorporates elements of innovation and should therefore be linked to knowledge centers and institutes, power generating projects, innovation networks, for example basic software developing, new machines and tool industry, environmental, health and safety issues. The incubation process is around 12 months, but the company stay at the incubator until is ready to survive in the market with out support. The High Technology incubators working whit specialized business sectors as innovation software, multimedia projects, biotechnology areas. Of course the high-tech incubators require more incubation time, extensive physical and technological infrastructure and highly specialized operation and support. According with the National Entrepreneurship Program from the SECRETARIA DE ECONOMIA available at on September 2009 the statistics give us 450 incubators across the country, classified according to the type of traditional, intermediate and High Technology business incubators. Through the National Network of incubators the main objective is to promote and advance the Mexican culture and business development resulting in the creation of more and better micro and small enterprises. The National Entrepreneurship Program coverage most of the entrepreneurs in México, with the following benefits: Promoting entrepreneurial culture, Awareness campaigns to

5 encourage entrepreneurship, Personal attention to each of the entrepreneurs who come to the incubators. The presence of incubators in each of the states and of course specialized services for start-ups in the following classifications: traditional, intermediate or high-tech technology. The economical support could be state or Federal, and the incubators should present a specific project in order to get founds and star to work or increase the amount of entrepreneurs. The federal founds comes from SECRETARIA DE ECONOMIA, and the state founds are handling by SECRETARIA DE RPOMOCION ECONOMIA. The efficiency incubators are monitored by some records, the most important are: Identify actions or adjustments for continuous improvement, Identify indicators and set trends charts, Potential Entrepreneurial Activity Index, Dynamic Entrepreneurial Activity Index, and Terminal Efficiency in Business Incubation In Centro Universitario de Ciencias Exactas e Ingenierias the business incubator belongs to the intermediate technology category. At the pre-incubation process the incubator provide the tools needed to support skills and abilities development at the initial area. The Entrepreneurial Training Workshop topics include incentive-oriented of

6 the following skills and abilities: Capacity Analysis, Decision Making, Self Learning, Adaptation, Ethical Commitment, risk tolerance, Management and Leadership Capacity. At the selection process start one of the most important parts in the model, because involve evaluation team diagnosis, or the technical committee qualifications, when the participants present the project following the Guidelines for submitting a project to the Technical Selection Committee for the Incubator Project Detection Business Opportunity. The main objective is to explain briefly with text or graphics, how the business opportunity identified or proposed project, who claims the proposed product or service?, Is it a need that already exists or will be a need to be set on the potential customer? Market Plan. In this issue is important to describe in detail the product or service, summarizing information regarding competition, sales price or market introduction process. Operations Plans. It is important to explain What kind of technology requires (or teams), Specifications and standards have to fulfill the product or service, information regarding the installed capacity and a general organization plan. Finance Plan. With information regarding Budget Costs and Expenses,Revenue Budget and Cash Flow Start-up Plan Founding. Could be from government programs, bank, family or friends support. The Entrepreneurs are the most important people in the project, most of the times they are students, graduates, teachers or members of civil society attending training

7 workshops for entrepreneurs in order to generate, develop or strengthen a venture initiative. Also attending the incubation model, entrepreneurs who have already been documented to be feasible, although not involved in the Training Workshop for Entrepreneurs, the above is determined by the appropriate Technical Committee. Technical Committee is a group of people, representatives of particular institutions or sectors, which are called and constituted a technical committee for the purpose of selecting and evaluating projects before joining the incubation stage. The Consultants which dominates at a particular specialty area with 5 years of verifiable experience at least, and provide services to entrepreneurs who are served in the incubation process. And of course the tutors who are members of civil society, preferably from the business sector, which according to the profile of a company in incubation, support the monitoring of the same from three edges: motivation, management and particular aspects of the project (technical). With these activities for the business incubation IETI-CIDET hopes to promote more and more among the people creating successful companies and innovations regarding intermediate technology. At the present time the IETI-CIDET has five entrepreneurs who are working very hard with their projects and all of them have received state founds to start operations.

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