Business Incubators in KZ Reality or Not By

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Business Incubators in KZ: Reality or Not By Ayauzhan Torina & Adiya Aitpayeva

What is business incubator? Why it is good? Definition: A business incubator, or seed accelerator, is an old concept that has experienced momentum in recent years. These programs are specifically designed to accelerate the successful development of startups through an array of business support resources and services, whereby increasing the opportunity for success. Do they work? “In 2005 alone, North American incubation programs assisted more than 27, 000 companies that provided employment for more than 100, 000 workers and generated annual revenues of $17 billion, ” according to a 2006 State of the Business Incubation Industry study by the NBIA. 27000 companies 100 000 $17 billion workers Here are some characteristics of Business Incubators: Only 33 10% Months to profit complete - Clients include all kinds including science-based businesses (biotech, medical devices, nano, clean energy, etc. ) and nontechnology; all ages and genders; includes those who have previous experience in an industry or sector - Business model is primarily (90 percent) a nonprofit business model; for-profits created by corporations and investors - Sponsors include universities, economic development organizations and other community-based groups, sometimes with help from government - Competitive selection, mostly from the community -1 -5+ years (33 months on average).

Appliance of experiences of other countries to Kazakhstan Country Short explanation Why it can/can’t be used in Kz Grameen foundation - USA Provides funds and technical assistance to local and regional microfinance institutions (MFIs) and other poverty-focused organizations. Grameen Foundation works with these organizations to: -Help them find financing, either through loan-guarantee programs or direct funding - Improve their IT systems - Ensure that their staff are as productive as possible, through services and consulting provided by its Human Capital Center Measure whether their efforts are reaching the poor, though its Progress out of Poverty Index (PPI) Can. But a lot of donates are needed. Also information security is nor guaranteed

info. Dev mlabs info. Dev serves its clients, partners, and the wider development community by: -Experimenting and pioneering on-the-ground approaches to supporting growth-oriented entrepreneurs in developing countries. -Influencing the global innovation and technology entrepreneurship agenda. -Developing and implementing scalable programs specifically targeted for mobile, climate and agribusiness enterprises. -Promoting inclusive strategies that benefit marginalized groups, women, people living in extreme poverty, minorities, youth, and others. Can’t. Company must have strong financial base Again needs donates or strong governmental support Tandem Entrepreneurs Silicon valley mobile industry accelerator. Tandem invests $200 K in each mobile startup and works closely with the team for an initial 6 -month period. This allows each team to focus on gaining traction without having to wait for other capital. We work with founders to bring in other investors as the business gains momentum. Tandem has the ability to invest considerable additional time and capital in each business as needed. Can. Should be implemented. It can be implemented with governmental support. One organization can choose a start-up and help it to become reality, because many good ideas spoil in bureaucratic hell and without investments

So, what are the advantages and disadvantages of joining mlabs? Pros Quality Advice and learning Support structure Inspiring environment Startup is taken seriously Source: http: //www. forbes. com/sites/bhrigupankajprashar/2013/04/12/pros-and-cons-of-joining-an-incubator/ http: //www. nfib. com/article/pros-and-cons-of-joining-a-business-incubator-57781/ Cons not much flexibilit with space y some additional it tasks that go with May be Bubble

What is our idea: 1. 2. 3. 4. 5. 6. 7. 8. Using governmental help или interested companies Create an organization Which will act as incubator Several very good start-ups will be chosen The organization will provide working space for a start-up team with all they need Organization will provide working environment Organization will assist in all financial and bureaucratic aspects Organization can organize meetings with professionals in order to help make start-up better 9. Organization will help to launch project 10. Duration – 6 month

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