Business Incubators: Comparison of Four Different Models

	Local Economic Development Incubators	Academic and Scientific Incubators	Corporate Incubators	Private Investors’ Incubators
Goal	Non-profit	Non-profit	For profit	For profit
Main Activity	Generalists	High-tech	High-tech	High-tech
Objectives	job creation re-industrialisation / revitalisation economic development support to particular target groups or industries development of SMEs and clusters	commercialisation of technologies development of entrepreneurial spirit civic responsibility image new sources of finance	to develop entrepreneurial spirit among employees - keep talents monitoring - access to new technologies, business models, and new markets profits	profits by selling stock from a portfolio of companies allowing to risks to be spread
Targets	small commercial craft or service companies in some cases, high-tech companies	projects internal to institution prior to company creation external projects	internal and external projects, generally related to the activity of the company	technological start-ups, generally ICT and/or biotechnology related
Offering	hosting and shared services administrative assistance consulting Eventually: coaching - training - networking access to financing	concept testing technical advice and support intellectual property advice seed capital basic management advice Eventually: access to business angels, venture capitalists, and corporate investors access to industrial networks strategic advice coaching hosting	financial resources prototype and market testing access to commercial markets Eventually: long-term strategic partnership access to multiple competencies	management and strategy advice supply of one or several types of financing and search of complementary financing personal networks Eventually: hosting and administrative assistance legal services, public relations, recruiting, etc...
Key Problems	durability - lack of stability of resources quality of management and services provided - highly dependent on the quality of the manager governance, risk of conflicts about the objectives, bureaucratic red-tape, time spent in negotiating with different partners	legitimate inside the institution legal status, governance, independence, and operational flexibility income sources management quality; lack of business coaching expertise access to external resources and network	strategic position of the incubator for the corporate structure management independence and ability to mobilize internal resources durability of the mission of the incubator conflicts about the objectives between the owners / the managers of start-ups and the corporation	sourcing of quality projects level and conditions of the incubator payment in comparison with provided services valorisation of the incubator's participation at the entry and the liquidation durability of the incubator
Trends	regular development increasing territorial coverage	rapid development under the aegis of public programs	testing of the concept in numerous companies likely to develop	high levels of consolidation and restructuring of the sector still looking for a successful model

Venturepreneur:

Business Incubators