No. 5, 2013
CENTRE PLUS NEWS SERVICES FOR BUSINESS (Business Incubators) What is a business incubator? What are the benefits of it?
Business incubator is a public
institution operating in the territory of a county or in the territory of a few municipalities, which on favorable conditions rents out premises, technical and office equipment, and provides business information, consulting and training services for incubated entities. The main objective of BI is to support the owners of startup businesses, to promote the creation of new workplaces, to reduce the risks for operating companies and to help companies which have good business ideas, but financially are weak to reach a level, when they can engage in economic and commercial activities, and compete in the market independently. In accordance with their goals business incubators organize complex assistance to startup entrepreneurs: - Rent out their property (premises, office equipment) - Provide information, consulting and training services and organize dissemination events - Provide office (telephone, fax, document preparation, translation, multiplication, internet connection, etc.) and advertising services
-Organize exhibitions, presentations and mediate in finding financial sponsors and foreign partners The services of business incubators are paid, but the prices are minimal and reach about 200 LTL per month. Incubated companies who start their business at incubator get rent discounts for the first three years: in the first year - 75 percent, in the second year - 50 percent and in the third year - 25 percent of the rent fee.
Who can benefit from the services of business incubator? The procedures and selection criteria for incubation of entities are established by the rules of business incubator. Residents who have a business licenses (during the period, when the license is valid), micro and small enterprises can be incubated in business incubators.
Decision about the adoption of the company is made at shareholders’ meeting. The main criteria for determining whether the company will be adopted by the business incubator are as follows: - A company is engaged in activities which promote the creation of new workplaces - The heads of a company have original ideas, after realization of which the new areas of activities will be assimilated and new services will be offeredA company produces the right products for export or provides services which are marketable in a city or region - A company produces of high value-added goods and services - A company implements scientific discoveries and technological innovations A period for incubated company to operate in a business incubator is determined by the contract and can last up to five years.