Business incubator

Indian Economy glossary

Also called: Incubator · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT

Meaning

A business incubator is an organisation that looks after startups at a very early stage, often when they are little more than an idea. It gives them office space, mentors (experienced people who guide them) and contacts. Sometimes it also gives a small amount of seed money. Support lasts a long time, so a fragile new firm can survive its early years.

Example

Atal Innovation Mission's Atal Incubation Centres (AICs) and the Department of Science and Technology's Technology Business Incubators (TBIs) host young startups, often on college campuses. These startups get space and mentoring while they build their first product.

Don't confuse with

  • Startup accelerator: an accelerator runs a short, fixed-term programme for a batch of startups that already have a product. It ends with a demo day. An incubator gives open-ended, long support to firms at an even earlier stage.

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