With Covid 19, the pandemic blues hitting the world over and impacting the business scenario drastically it has become imperative for newer business models to adopt a flexible strategy whereby they can incorporate a work culture that can be accessed remotely without even physically arriving at the office premises thereby reducing the chances of infection contraction drastically. Thus the growth of business startups has accelerated the need to find a suitable business model that can function from a remote surrounding. Business Incubators are the business elements that provide a business model with administrative functioning and advisory services so that the business models can operate efficiently.
Business incubators play an important role in diversifying the business prospects and thereby bring about a change in the organizational culture of a business operation activity. Following are some of the most important resources provisioned by the Business Incubators which help in the growth of the business element or Firm-
Provision of Financial Resources
The primary activity of a business incubator is to create a provision of financial resources. It has a business firm that can tap into in times of depressionary trends and anti-growth tendencies. Business Incubators introduce the business to angel investors and venture capitalists. Both of whom have an adequate supply of funds and are in search of investment prospects. It helps regulate their income but also gain exposure in the business environment.
For example- Suppose Firm A is a startup venture. It decides on providing online cloud computing services to its clients. For establishing the cloud computing software program, the business would require a huge amount of funds provided by the Business Incubators through their communication with the venture capitalists. Financial Capacity determines the organizational strength of a business firm thereby analyzing its functioning capability. Thus Business Incubators play an important role in this regard.
Providing Management Support
The business incubators provide to the business environment is through the creation of management culture. An incubator provides management services in the form of Financial Management. It provides funds for firm audit, assurance, and business analysis, and Human Resource Management. It refers to the process of using human beings for completing complicated tasks of the organization.
Specialization is required in Human Resource Management. It can function efficiently only if a provision for Organizational Support System is created. An organizational support system can become effective only when there is proper provisioning of adequate human resources.
The business environment would require knowledge-based support from a group of individuals. They must have expertise in the quality control and marketing department. Their skill sets, knowledge resources, and implementation capability would determine the future course of action for a business model.
Establishment of Inter-Personal Relationship between Startups and Incubators
A synergy of discipline and commitment is created between the Startups and the Incubators. It results in a fruitful long-term relationship. The business incubators are brought to a close. The contacts established and the relationships formed go a long way in determining a future course of business. They also influence the startups to create avenues of employment in the country where it is operating.
Business Incubators play a quintessential role in the growth of the startup environment of a country. They bring adequate growth in the prospects of business functioning. By providing support services to the startup bodies it generates job prospects in the economy for freshers, trainees. Moreover, it brushes up their skills, and personnel who possess the capability to generate fresh thoughts and ideas which diversify the business environment and its operational activities. Thus Business Incubators are incredibly important for the growth of a startup environment in the country.
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