Review of 20 Business Incubation Models – Lalkaka Incubator Development Model (Technology Business Incubator Manual) 2000 (Part 8 of 20)

Most of the models presented in the Business Incubation Model Series describe the structure or processes of business incubators. However, few models intended to explain how to develop an incubator. Today’s post is about the development of technology business incubator. This is the most complete model that have been ever described. The model was presented by Mr. Lalkaka in 2000 and was intended to guide planners, educators, sponsors and management teams in exploring and establishing a  successful TBI program.

2000, Lalkaka Incubator Development Model (white-box, process, development)

The Manual consists of five parts, which are:

One – Incubation Concepts places small and medium-scale enterprises and their support services in the overall framework,and outlines the characteristics, objectives, types and challenges of technology incubation systems.

Two – Planning covers the preparations, the feasibility analysis and business plans, the selection of location and design of facilities, followed by the financial analysis required and expected benefits.

Three – Implementing follows by defining the actions to start the establishment of the TBI and the organizational issues and gives practical guidance on selecting tenant companies. 

Four – Operating proposes measures for serving tenant companies through training, counseling and networking, as well as good management practices towards greater self-sustainability and a framework for assessing the performance.

Five – Learning from others presents a case study of TBIs in Brazil which points to some features for enhancing operations. The success factors and lessons learned are brought together.

The business incubation process is primarily concerned with nurturing start-up and early-stage ventures; these begin with 2 or 3 persons but have a strong growth potential – companies which would become large in future but happen today to be small. The starting force, then, is the entrepreneur, operating in a national and international environment, moving to overcome obstacle sand create a successful knowledge-based business.

Lalkaka Incubator Development Model - Enterprise Support System (2000)

Lalkaka Incubator Development Model – Enterprise Support System (2000)

The preparatory process commences with a proper understanding of the incubation system, collecting information by accessing sources such as NBIA and EBN on the Internet, and talking to consultants and managers of incubators in the vicinity. The next essential step, at times missed, is the preparation of a feasibility study to examine viability in the given context.

Typically, here are the key steps and terms required:

  • the preparatory work comprising feasibility and business planning for a business incubator – 6 to 9 months,
  • the implementation  – 6 to 9 months

That is, a total of say one year before the TBI can start operations. Where the concept is new, the implementation process can take longer; with strong leadership and assurance of funding, the process can be accelerated. The overall planning process is outlined in Figure below.

Lalkaka Incubator Development Model - Planning (2000)

Lalkaka Incubator Development Model – Planning (2000)

Incubator is a business much like the tenants it serves; consequently, it must be run in a business-like way if it is to advance the cause of its tenants and sponsors. This belief must begin with the formation of the incubator and continue through the daily operations, at every level and at every stage.
The organization of the TBI is based on the concept of local autonomy and control. As such, the ownership of the incubator is vested in the local sponsors, formed explicitly for this purpose.Since incubation brings together many aspects of economic development, an independent entity can facilitate interaction with existing structure.

Lalkaka Incubator Development Model - Planning (2000)

Lalkaka Incubator Development Model – Planning (2000)


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