Several weeks ago, I was helping my daughter Mia research startup companies for a business class that she is taking.
As I was doing my research, I came across an article that caught my attention.
It was about a business incubator. I had no idea what it meant! As I know what an incubator is, I assumed it would be a “nurturing” environment for modern businesses. Although I wasn’t exactly wrong, there’s more to it than that. Business incubators are staffed with professionals who provide startup businesses with instruction, education, investor access, and more. By providing maintenance, startups can develop their ideas into a product or service that may eventually become a successful revenue generator. I learned that there are many types of business incubators, including venturepreneurship, innopreneurship, entrepreneurial success, and innovation-driven startups. It all made sense now, but I didn’t understand how these business incubators were funded. These startup companies also lack solid financial backing, in my opinion. To my surprise, most of these incubators are paid through grants and also a fee-based contract that could guarantee between 7 to 10 percent of the business’ equity, and up to 50 percent in some cases. As a result of finding this information, I am now fully aware of what this service entails in case I ever need it in the future. In any case, my child got an A for her research paper, and I learned something new in the process.