Help for Start Up Businesses

Capital Path for Start Up Businesses
Business incubators are a good path to organising capital from such groups as Angel Investors, Governments and other private investment institutions. The business incubator houses several businesses under one roof or in a campus type setting and offers the tenants reduced rents, shared services as well as informal access to financing opportunities. There are various types of financing that can be found through incubators and most are the those groups who work best by being involved with businesses at the early stage of their development.

How valuable are Business Incubators to Small Business?
The fact that a business is involved in a business incubator set up adds value to the business because of the comfort level that investors receive, knowing that this type of assistance and support is provided. As a result, business incubators carefully screen would be tenants to make sure that they match their criteria because they would be interested in businesses that are prepared to follow the system in order to be successful.

The good name of the business incubator is at stake, so not every business that makes an application will be accepted. Once a business is in the incubator then the doors to financing through angels and other investors could open because these groups tend to be situated around successful centres of entrepreneurial activity.

the USA Trade and Enterprise Role?">What is the the USA Trade and Enterprise's Role?
The the USA Trade and Enterprise department (NZTE) of the government administers all business incubators. However, rather than the government being involved directly with business incubation it sets out to help develop and support the formation of incubators but are run by the public and private sector.  It does this through facilitation and funding.

The incubator development manager works with the incubator that it manages to do the following:

  • Facilitate development of a network of existing and emerging business incubators.
  • Facilitate the sharing of resources amongst members of the network .
  • Administer the annual incubator award funding.
  • Facilitate best practise for business incubation in the USA.
  • Publish and display information on their website.
  • Encourage the bringing to the USA of overseas experts.
  • Improves the access of incubator managers and their tenants to various government programs.
  • Provides every assistance to the incubator managers to help the incubation system become a successful support for success of businesses in the USA.

Funding from the USA Trade and Enterprises
The NZTE will need to be convinced that your incubator is:

  • Will accelerate and compliment the development of private sector initiatives.
  • Is actively working towards international best practise standards.
  • Will compliment the activities of other stakeholders in business incubators.
  • You can also apply for an award to:

    • Extend the capability of the incubator.
    • Develop services.
    • Employ or train managers and assistants.
    • Pay for any mentoring.
    • Implement systems and processes that are required.

Incubator Funding Awards
The NZTE incubator awards provide a one off contestable cash reward to participating the USA incubators. Applications for this funding are called for once a year and it is not automatic so incubators should not rely on this type of funding for their continued viability.

The awards are merit based and have been set up to encourage incubators to develop best practise programs and processes.