Dr Robert S. Q. Lai, general director of the Small and Medium Enterprise Administration, the Ministry of Economic Affairs of Chinese Taipei, said that the functions of business incubators included a reduction of risks and investment costs and an increase of business start-up rate. At the same time, business incubators help develop new commodities, new business models and technologies. They offer new enterprises and micro enterprises opportunities for research co-operation and piloting services, training courses, information and consultancy services.
Adding Dr Lai’s idea, Nguyen Bao Hoang, general director of IDG Ventures Vietnam, said that with the functions of business incubators, individuals, groups and enterprises would benefit if they join the incubator network. Accordingly, they will receive financial investment from investment funds and advices on business plans and technology solutions, management methods. Also, they can use famous brands, distribution channels, and relations of incubators during their development.
In a speech introducing the Tianjin Women's Business Incubator in China, Li Guihuan, director of the incubator, said that providing instructions on jobs and capital assistance, the Tianjin Women's Business Incubator aimed to improve position and benefits of women in Tianjin.
Fifteen years ago, there were only 200 business incubators in the world. The figure has reached 5,000 incubators in different forms. Of the figure, many incubators have formed in developing countries in Asia-Pacific. When technology plays a more important role in improving competitiveness, Hoang Van Dung, vice president of VCCI and chairman of ABAC 2006, said technology enterprise incubation should become part of economic policies.
The US boasts most business incubators. However, the number of business incubators has increased sharply in China, the Republic of Korea, Indonesia and Russia. A research on the role of business incubators by UNDP-UNIDO-OAS states that only 78 incubators in seven developed countries have generated 26,000 new jobs. In Vietnam, around ten incubators have been set up and their potential is very huge.
In New Zealand, there had been no business incubators before 2000. Incubators appeared in the country after a journey to foreign countries by New Zealand’s minister of science and technology to learn about creativity systems. After witnessing the effectiveness of incubators in Israel, the minister started to apply in New Zealand right after he returned home.
Business incubators formed in New Zealand in 2003 and by June 2006, they had completed a creation of 20 fast growth enterprises, meeting their main targets when a three-year strategic plan was developed. New Zealand formed international level business incubators in a short time and has gained significant achievements.
Business Incubator - A Solid Foundation for Enterprise Development
A business incubator conference, held by the Vietnam Chamber of Commerce and Industry (VCCI), was the first international event of business incubation has been held in Vietnam. Participants from APEC economies shared experience and highlighted benefits brought to each economy by business incubators.
In Vietnam, the CRC incubator (the Center for Research and Consulting on Management) was established in 2004 under the sponsorship of World Bank Infodev. CRC’s initial targets are to develop pre-feasibility plans in 2005, growing between 30 and 50 per cent of seeds into enterprises, which can exist by themselves. At the same time, another aim of CRC is to generate jobs and improve the public awareness of business incubators and pilot the multiplication of business incubators in Vietnam.
Pham Minh Tuan, deputy director of CRC and director of the CRC business incubator, said when incubators were built, enterprises should officially start to run the model, adjusting resources and conditions. Tuan said that in Vietnam, incubator models should be applied flexibly. To be successful, Tuan said, initial impression should be made on seeds and technology should be abused.
CRC has so far built an incubator, which has incubated seven groups of seeds, 80 per cent of which have gained good results and five companies and 37 jobs have been created. The CRC incubator’s formation has promoted the public awareness of the role of business incubators. So far, more than 1,000 people have attended training courses and exchange meetings organised by CRC.
Providing consultancy services for new and micro enterprises to help them reduce their financial burden, business incubators in APEC economies play an important role in capacity building for new enterprises and job creation.
From VCCI News