Presentation to the Association of Austrian Technology Centres fileUKBI helps governments and development agencies to build a thriving business incubation infrastructure that will

Entrepreneurship · Start Up · Innovation · Accelerated Growth © Copyright UKBI 2011

Presentation to the Association of

Austrian Technology Centres

12 October 2011

Mike Herd

Board Member, UKBI

Executive Director, Sussex Innovation


Business Incubation is a unique and highly

flexible combination of business development

processes, infrastructure and people,

designed to support entrepreneurs and grow

new and small businesses, products and

innovations through the early stages of

development and/or change.


Who Are We?


Set up in 1998 (Growing Success report)

1998- 2001: Funded by UK Government Departments

(Department of Trade and Industry + Treasury)

Thereafter a Membership Organisation

Executive Team + Board of UK-based Key Practitioners and

Stakeholders - including SINC

Represent Business Incubation in the UK (Help to (in)form policy)

Customers

business growth environments and sectors – science, bio-science and technology

parks, innovation, business and enterprise centres, business incubators,

regeneration parks, creative industries, venture capital funds, business angels,

coaching and mentoring personnel, academics and individuals with an stake in

the process of business startup and accelerated growth

Background


UKBI helps governments and development agencies to build a thriving

business incubation infrastructure that will make increasingly significant

contributions to local, regional, national and international economic growth.

UKBI’s focus on high quality, professional business incubation helps a wide

range of organisations to create the right environment for nurtured and

supported growth, including universities, science and technology parks,

research and development laboratories, commercial clusters and social

regeneration projects.

As business incubation environments mature, UKBI has a key role in creating

and maintaining the national network hub for the exchange and development

of learning amongst its many communities of interest, including those

responsible for developing business incubation overseas.

Our Role


What we do

Connect and promote

Networking events and conferences

Develop

Professional development and training workshop and seminars

Inform

Source of knowledge and understanding through publications and

resource library, funding sources

In-house expertise (Team and Board)


What we do

Influence

Research into state of the industry, global information

Inform and influence national, regional and local policy

Lobby at national, European and international levels

Press relations.

Recognise

Awards, INSPIRE accreditation and appreciation

Collaborate

Work in partnership with UKBI to build business and generate new revenue

streams

Working closely with members, UKBI strives to ensure that its activities are

aligned with the wants and needs of its membership.


Our Mission

Is to proactively engage with organisations and professionals engaged in

enterprise, innovation and accelerated growth

Is to develop and deliver an invaluable member benefits package

Is to be the main source of knowledge and information about business

incubation and accelerated growth

Is to build relationships with stakeholders: government, press, and the larger

business community

Is to provide opportunities for networking and professional development

Is to create opportunities for collaborative work


Business Incubation in the UK (1)

‘Typical’ profile of the UK based business incubation environment

‘Not-for-profit’ organisation

Services provided to start-ups and early stage businesses

Services provided on a diminishing basis and including business unit,

shared admin, business and financial support

Approx 20% also include established businesses as part of their client base

Pre-incubation services are a growing trend and is now available with 33%

of UK based business incubation environments

Only 8% focus exclusively on pre-incubation, operating on a physical/virtual

basis

Pre-incubation generally target under represented groups and/or areas

where self-employment and raising awareness about entrepreneurship are

important components of the programme.

Source UKBI 2008 mapping survey



Client base

23% of business incubation clients are incubatees

The impact of business incubators is therefore not limited to

what is happening within the building.

Origins of clients: Local community (90%)

University , HEI and/or corporate Spinouts (63%)

Inward investment (37%)

Large corporates (20%)



Size and services provided

Average size = 36,000sqft (gross)/20,400sqft (lettable)

Average number of business units = 32

Mixed use/sector specific

Business incubation environments becoming more

sector specific.

Most cited sectors included: High tech industries

Creative industries

Bioscience/ bio technologies

Advanced manufacturing and energy



Services generally provided (internally or externally)

Admin services Support

services

Meeting rooms and/or conference

facilities

Reception area/reception facililty

Broadband and general office

equipment (e.g. photocopier, fax)

Networking areas

Telephone network and hardware

- General business advice /

planning services

Access to) Specialist advice (e.g.

legal, IP)

Help finding grow-on space

Mentoring

Training

Seminars

Workshops

Networking with finance

providers

Access to Investment

Readiness programmes

General financial advice



Initial funding

Initial funding = capital funding only for 57% of respondents.

Having return on investments based on capital funding and occupancy rates

may develop a certain amount of tension between their core objectives and

their need to break even.

Sources of revenues and running costs

Source Source of revenue (% of

respondents)

Average covering of running costs

(%)

Rent and service charges 92 66.5

Investments (royalties, equities) 2 0.19

Consultancy and external work 23 5

Grants 40 15

Loans 0 0

Others 27 13


Business Incubation in the UK - challenges

Sustainability…sustainability…sustainability

Key element of central and local support

Still a growth ‘industry’ - nationally and globally

Community focus

Integration

Good (Best) practice

Proving added value/impact and measuring success

Risks and responsibilities of limited public funding

Access to finance (clients and business incubation environments)


Good Practice Framework

Business Incubation Development Framework (BIDF)

Selection Policy

Strategy

Management Team

Exit Strategy


SOCIO-ECONOMIC IMPACT

Continuous

Development &

Review

Continuous

Development &

Review

PEOPLE

Skills and experience

INFRASTRUCTURE

Facilities & services

PROCESSES

Business Development

Special Programmes

SELECTION POLICY

INTERNAL & EXTERNAL STRATEGIES

SKILLED TEAM

GROW ON POLICY AND LINKS

OPERATIONS

Financial Performance

Management

Staff & Personnel

Developing Phase

Core Principles

&

Core Elements

Foundation Phase

Core Principles

Leading Edge Phase

Core Principles

& Core Elements

& Evaluation

Business Incubation Development Framework

‘Accreditation’/ INSPIRE


So what is INSPIRE?

First dedicated accreditation and development

tool for Business Incubators

Looks at 122 separate benchmarks

Economic Impact

Action and Development Plan


Incubators as a

mechanism for growth…

IncubatorV

Incubation


Success…


98.7% survive

during Business

Incubation…


87% survive

over 5 years…


Mike Herd

UKBI Board Member

www.ukbi.co.uk

+44 (0) 1273 704 400

[email protected]

Twitter: @sinc_innovation

www.sinc.co.uk

Documents

Presentation to the Association of Austrian Technology Centres fileUKBI helps governments and development agencies to build a thriving business incubation infrastructure that will