Business incubators in the framework of local development

Transcription

1 Business incubators in the framework of local development Introduction into the system of Business Incubation Belgrade Expert for GIZ: Franz Dietrich Page 1

2 Dissemination of Business Incubators Page 2

3 Start ups in Germany Total new businesses in 2013: 755,000 Total small business start- ups: 238,000 Total side line businesses: Total new business in incubators: 1, Page 3

4 Definition Business Incubators + their relation with the environment Goal: Creation of Wealth (new companies, products + services, innovation, technology transfer, jobs) Industry Industrial- /Commercial Zone Business Park Business Incubators/ Innov. Centres Science Park Technology Park Research & Development, Higher education institutions (HEIs) Basis: Regional Potential Page 4

5 Business Incubator types Business incubators + their relation with the environment Business Incubator (BI) Innovation Centre (IC) Technology Business Incubator (TBI) University Business Incubator (UBI) Start Up Center Business Support Center Business Development Center Technology Park (TP) Accelerator, Hub, Pre-Incubator,... Page 5

6 Science and/ or Technology Park Elements University Park-Management SME HEI SME Business Incubator Larger companies Page 6

7 Facilities + services, the generic model A full-service incubator usually offers: Incubator space: offices or workshops, sometimes labs, available on a flexible, affordable + temporary basis (easy-in + easy-out), more & more: pre-incubation rooms Common services: incl. secretarial support, telephone answering, common reception, mailing facilities, access to computers (LAN) and other office equipment, meeting rooms and (in some cases) cafeteria/canteen facilities Business counselling, namely hands-on assistance with regard to business planning, training in management skills, access to accounting, legal-, marketing- + financial expertise, + ad hoc advice Access to finance + specialist advice: some operate own seed + venture capital funds; access to specialist advice will be provided if an incubator does not have the skills + know-how itself Page 7

8 The role of municipalities and business incubators Most incubators are initiatives of local governments ( %) as part of their Reactive approach need oriented, stimulate job growth Proactive approach change the regional economical profile Entrepreneurship development is a local task in most countries Development of commercial zones and business infrastructure is a local task Local governments can receive public funding Local municipalities own adequate buildings and/ or green area for the development of Business Incubators Local governments can make not for profit decisions Page 8

9 Other important actors in the region with potential to become stakeholders (SME) Development agencies Regional governments Regional Development Agencies Chambers Associations HEIs Training institutes Technology transfer agencies Private service providers: like start up consultants, lawyers, accountants,... Page 9

10 History First business incubator + origin of the term First incubation activities in the USA + Western Europe partitioning space, share services by J. Mancuso Batavia Industrial Center (BIC): first business incubator, founded 1959 (Batavia/ State of N.Y.) Still operating (110 tenants, 1000 working places Had much in common with present initiatives in Eastern + Central Europe for restructuring + revitalisation of industrial areas Batavia Industrial Centre (N.Y.)l Page 10

11 History Dissemination of the business incubator concept European pioneers in business incubators based on the science park concept + focussing on promoting technology-based start-up companies: Herriot-Watt University, Edinburgh (1969), Cambridge University Followed by projects in Australia (1972) Asia (1974) Scandinavia (1982) Germany (1983) BIG Berlin Latin America (1986) Eastern + Central Europe (1990) at the same time in Africa Different continents developed quite heterogeneous models Page 11

12 History (cont.) Development of the concept in US + Western - Europe Managed Workshops Enterprise Agencies Industrial Estates 1970s Early 1980s Business Centres Business Incubator Concept Science Parks Multi-Purpose Incubators Late 1990s Specialised Incubators Technology Incubator Centres Incubator without walls Sector-specific Incubators (e.g. rural incubators) Hubs, Accelerator, Pre-Incubator New Econ. BI Virtual BI Source: UNIDO Page 12

13 Types of business incubators Different forms of categorisation There are common characteristics of Business Incubators There is a generic Business Incubator model There is no single best practice model Each Business Incubator features also regional characteristics Business Incubators should be embedded in the regional development system respond to the specific needs and requirements of would-be entrepreneurs in their region should pro-actively address untapped regional potential Page 13

14 Grouping of Business Incubators General Purpose Incubators are most common and usually accommodate a client mix of start-ups and young companies, developing more production based businesses with a no -, low or medium - technological orientation businesses in the service sector Page 14

15 Grouping of Business Incubators Technology Business Incubators (TBI) focus on promoting technology-based business start-ups. Technology-based is not the development of technologies but the set-up of a company wanting to sell its technology-based product or service on the market. Therefore a Technology Business Incubator is not to be confused with an applied research centre Technology Business Incubator are often closely developed and operated by or with the local university Page 15

16 Grouping of Business Incubators Agroindustrial Incubators often quite technology oriented (and then they are often close to a University Business Incubator) transferring scientific know-how to entrepreneurial activities in the food-sector Social Incubators often take care of underprivileged and disadvantaged people, often linked to traditional sectors high focus on job creation and employment Page 16

17 Dissemination of the business incubator concept Today: approx. 65 associations (international + national) of business + innovation centres or science/ technology parks actively promote the development of new companies + regional economic development more than 9,000 incubators worldwide in Europe: around 2,000 incubators generating gross new jobs/ year; results being achieved at an average cost per job to public authorities of around net (Source: European Commission 2008; newer sources, where available) Page 17

18 Business activities in which European business incubators specialise Business Activities Percentage (1) Sales, marketing and distribution 0.4 (2) Business and financial services 0.6 (3) Advanced/ high-tech manufacturing 18.6 (4) Information & communication technologies 18.2 (5) Research & development 12.2 (6) Biotechnology/ pharmaceuticals 14.2 (7) Knowledge-based industries/ new economy companies 11.5 (8) Other manufacturing activities 6.1 (9) Other service activities 8.8 (10) A combination of some/ all of these activities 9.5 Total (multiple responses possible) Page 18

19 Examples of business incubators Technology Business Incubator: TZDO Dortmund Technology Centre Opened in belongs to the largest technology centres Europe-wide approx. 90 companies, work places size: sqm, consists of 8 complexes of buildings with complete service-package + established network-links to main agents in the region PPP by local admininistration, chambers and 7 banks Focus on existing technology potentials in science + economy: Microsystems-technologies, IT, technology-oriented services, electronics, mechanical engineering, logistics, environmental technologies, biomedicine TZDO Technology park Dortmund Page 19

20 Examples of business incubators (cont.) Sector-specific ->Craftsmen GHG Incubation centre for handicraft + trade Töging am Inn Background: former production location of an aluminium company Focus on: founders of new businesses + young entrepreneurs from handicraft + trade, but GHG is also open to other branches Size: sqm of workshop/production space + storage areas with integrated offices + services (e.g. counselling for target group) Management company composed of town, district + 2 banks Clients: 34 companies + organisations (e.g. chamber of handicraft) Page 20

21 Examples of business incubators (cont.) Sector-spec. TBI Biomedicine IZB Innovation- + incubation centre biotechnology Martinsried Located in Munich, founded 1995, run by a management company (with predominant share of private sector) Management comp. builds networks + provides also seed-capital + counselling services Promoted by Bavarian government initiative High-techstrategy Bavaria Size: sqm (after enlargement) campus-like with kindergarten for children + cafeteria + offering conference facilities Tenants: 40 companies focussed on medical biotechnology, approx. 500 employees Graduates: 90, settled in the surrounding SP Page 21

22 Examples from other countries: Austria Software centre Hagenberg, Upper Austria Founded 1988, located in the Software park Hagenberg Size for clients: sqm, enlargement is going on Favourable environment due to location near to on-site research institutes, competence centres + polytechnical university Focus: ICT Austrian-wide network provides start-up assistance to entrepreneurs Upper Austria is among the top-networking regions in Europe concerning its cluster strategies Each incubator focuses on particular technologies + clusters Page 22

23 Examples from other countries: Ireland Dublin Business Innovation Centre (Dublin BIC) today also: Guiness Enterprise Centre (GEC) Opened in 2001 initiated due to need for enlargement of the existing EU-BIC in the disused premises of a former warehouse from the Guiness Group Joint initiative of public + private sector (ppp of six partners) Focus primarily on: software services oriented businesses, hi-tech prototype engineering, e- commerce, internet + mobile technology development Own seed capital fonds Size: sqm 83 companies (2013) Max Stay: 33 month Page 23

24 Examples from other countries: Thailand Khon Kaen University Business Incubator Location: 1 st Floor Pienwitjitr Building, Khon Kaen University Management: Managing Director (full-time) 2 Business advisers (ft) 1 accountant (part-time) Area Total 280 sq.m. Management Area: 144 sq.m. Incubation Area 136 sq.m. (6 rooms for rent) Page 24

25 Offices Page 25

26 TIKKU Financial Key Figures Investments: Reconstruction: USD Infrastructure: USD Operational cost per year: USD Deficit spending ratio: 70 % No. of Applicants (last year) 59 No. of Applicants accepted to join TIKKU 38 Fail / Quit during incubation process 20 Start-up and sustainable business 18 Page 26

27 Business Incubator Malacky, Slowakia Set up under framework of CbC Multi purpose/ multifunctional incubator in the heart of Malacky 4,500 sqm 60 offices (from sqm.) 10 production areas (up to 130 sqm) Today 27 incubatees and 15 commercial clients Page 27

28 Business Incubator Malacky Page 28

29 Key European incubator performance statistics + suggested benchmarks Setting up + operating Average Range Benchmark Average capital investment cost 3.7 m m. na Average operating costs 480,000 p.a. 50, mio. na % of revenue from public subsidies 37% 0-100% 25% 75% selffinacing ratio Incubator space 3,200 sqm 90-41,000 sqm 2,000-4,000 sqm Number of incubator clients 27 firms firms 30 + Incubator functions Average Range Benchmark Incubator occupancy rates 85% 9-100% 85% Length of stay 35 months 6 months no 3 years max. Number of management staff 2.3 managers 1-9 managers 2 ++ managers Ratio of incubator staff: tenants 1:14 1:2 1:64 1:10 1:20 % of managers time advising clients 39% 5% - 80% 50% Source: Europ. Commission Page 29

30 For questions: Franz Dietrich Page 30

31 Thank you for your attention. Page 31