Incubator Infrastructure and

Services

By Regina Fátima Faria and Lucimar Campos Caldeira Dantas COPPE Business Incubator

University of Rio de Janeiro - UFRJ Rio de Janeiro- Brazil

2

February 2004

© iDISC 2004 Applications for permission to reproduce or translate all or part of this work should be made to: infoDev Incubator Support Center (iDISC) Brasilia Trade Center SCN Quadra 1 Bloco C Salas 209 a 211, Brasília/DF - Brazil Zip Code: 70711-902 Tel./Fax: +55 (61) 3202-1555 URL: http://www.idisc.net Email: idisc@idisc.net

SUMMARY According to the authors, the first perception to the need of the implementation of a business incubator in a given community is highly subjective and could only be validated and supported after technical, economic and market studies are considered. After a brief description of all the variables and the above mentioned studies to which any incubator’s implementing project could be subject to, the paper highlights the importance that the choice of an incubator infrastructure will play in its daily operations as well as in its provided services. Special attention should also be given to the easy-to-use list of important and facility-related details one will have to take into account when implementing or refurbishing a business incubator.

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1. INTRODUCTION

If a business incubator is to make a shared infrastructure available to client companies, the first question that must be answered in the planning stage is who is the incubator’s target public. The answer to this question will aid in determining the physical characteristics of the facilities, which is the first step in defining the infrastructure to be offered to businesses by the incubator.

In this sense, a biotechnology incubator will have physical characteristics that are sharply different from those of an incubator for software companies or cooperatives.

Once the market niche to be targeted has been identified, an important subsequent step is to visit already operating incubators with characteristics similar to those of the project in question. These visits will be an important learning process that will aid in responding to questions such as the following: what works well and what works poorly? What should be changed, if change were possible? And how much was invested and what is the forecast value of the budget? The fundamental importance of these visits is to take advantage of the experience of other incubators in order to avoid the problems with which they have had to cope.

The next step is to plan the operations of the incubator. A definition of the services to be provided will indicate not only the facilities considered ideal but also those that can feasibly be made available by the incubator.

While each incubator will have its own specific project based on the characteristics of the public it intends to serve, there are certain aspects that must be considered in any project since they greatly facilitate an incubator’s operation. Though these aspects are discussed in this paper, one must stress from the very outset that, while the facilities offered are obviously important, an incubator is much more than its physical installations.

2. PLANNING THE FUTURE

The perception of the need for a business incubator is a result of identification of entrepreneurs or persons with entrepreneurial potential within a specific environment, coupled with recognition of the fact that they will need support and infrastructure in order to create their businesses.

Since this perception is frequently subjective at the start, it must be validated through technical, economic and market feasibility studies.

The feasibility study is the first step in planning the process of incubator implementation. Should the conclusions of the study be positive, the process of validating the opportunity moves a step further to elaboration of a business that will aid in avoiding the existence of grave failings in the premises underlying the facilities, services and action strategies of the incubator.

The incubator’s business plan must reflect an understanding of the environment in which it will operate as well as the opportunities and threats inherent to that environment. At the same time, it must indicate its marketing and operating strategies and, finally, the expected financial results.

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In planning the future of the incubator, a successful analysis requires that certain fundamental items be taken into account. These items are discussed below:

The first analysis to be made involves the mapping of the political, economic, social and technological environments1 in which the incubator will operate. This analysis should point out the opportunities and threats to be considered in elaborating the incubator’s action strategy. If, for example, the incubator intends to seek public sector financing, it must be constantly aware of changes in government, public policies and possible interruptions in investment flows.

Once the macro environment and its trends are understood, the competition, possible substitutes and new market entries, their strong points and weak points and the elements that differentiate one from another must be assessed. In this way, it will be possible to understand the opportunities that can be used to the advantage of the future incubator, always in the light of the needs of its clients, and to develop services and facilities that will differentiate the incubator from others.

A detailed and wide-ranging analysis must be made of the incubator’s target public, which is composed of the entrepreneurs who have come forward as candidates to positions within the incubator. An understanding of their needs and expectations makes it possible for the incubator to identify its market niche and determine the combination of services that it intends to offer. This, in turn, will result in the definition of the required infrastructure and the price policy to be followed. Once the incubator’s public has been defined, it will then be possible to plan its communications strategy.

From this point forward, it is possible to define the incubator’s strategic plan, its vision of the future, its mission, the elements that differentiate it from others, its sources of competitive advantage and goals for the future.

Once these decisions have been taken, the next step is to define the abilities required for operation of the incubator and map the processes to be followed for the incubator to fulfill its mission successfully. This, in turn, will demand adoption of a management style and a system of controls that are consistent with the defined strategic plan. The decision as to the level of automation to be adopted in the incubator’s activities must take due account of the relationship among the required investments and the degree of control attained and reductions in operating costs. Here, it is important to recall that resources are more easily obtained during implementation of the incubator than after it has already begun operating.

Finally, at this point, sufficient information will be available to initiate the process of financial planning, the final stage of incubator planning. The first step is to analyze the investments required for implementation of the incubator. Since the target public has already been defined, it will be possible to define the dimensions of demand, which, coupled with the price policy adopted, results in a forecast of the incubator’s expected revenue. Having calculated the costs of the defined infrastructure and forecast revenues, it is possible to deduce the expected financial result and conclude as to whether the project will be financially self-sustaining or not. Validation of the idea of implementing an incubator is concluded once the project’s potential for sustainability has been identified, since this is one of the key premises for the incubator’s success. Together with the question of sustainability, the decision as to the ideal size of the incubator is essential to ensuring its independence from external resources.

2.1 BUILDING

In the incubator planning stage, the decision as to the location of the building is very important. The area surrounding the incubator must be carefully evaluated in order to identify available transportation, the existence of postal and

1 Mainly in the case of technology based incubators. Even the traditional and more simplified types of incubator must evaluate the technological trends that could potentially impact their operations.

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banking services in the region and even the type of neighborhood, all with an eye to avoiding future problems. Aside from this, in the case of technology-based incubators, it is important that they be located near universities or research centers. When dealing with a traditional incubator, it may be more important to locate it in an area with easy access to marketing facilities.

However, the decision-making process is often based on the space that support institutions are able to offer to the project. Consequently, incubators are frequently installed in already constructed buildings.

There are advantages and disadvantages in choosing to adjust a building to the needs of the incubator or constructing a building specifically for the project. For example, if the projected building has the advantage of being tailored to the needs of the incubator, it will require voluminous investments that development institutions are normally not in a position to finance. In general, it is thought that the cost of adapting an already existent building will normally be sharply lower than the cost of a new construction. However, this is not always the case since we have often come upon buildings that have cost just as much or even more to renovate than it would have cost to build new facilities. In this case, there are dual disadvantages: the higher cost and a lack of the functionality that would be found in a building constructed specifically for the incubator. One aspect that cannot be forgotten in opting to renovate a building is the benefit of making use of a facility that is often idle or underutilized.

The need and feasibility of investments in incubator implementation are determining factors for the project, while understanding the dynamics of what is ideal and what is feasible is a fundamental condition for the success of project management.

At the same time, however, it is always easier to obtain resources with a detailed architectonic project.

Independently of whether the building is projected or adapted, what is fundamental is that an atmosphere favorable to the development of businesses be created and this can be achieved in either one of the two options.

MAJOR CHARACTERISTICS

2.1.1 SIZE

What should be the size of the incubator? Should it serve the needs of 10, 20 or even 100 companies? These questions can be answered by analyzing the following aspects:

§ Operating costs of the incubator;

§ Earnings on the investment financed by support institutions, should this case arise;

§ Payment capacity of the companies served and rent levels found in the region;

§ Capacity to attract entrepreneurs to the incubator;

§ Type of business served.

The balancing of these variables will indicate the number of companies that the incubator will have to serve to become self-sustainable over the course of time and, consequently, the total area of the building.

One should stress that a very small building can make an incubator unfeasible, since costs will be high and there will

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be little attractiveness for public and private investments. However, disadvantages can also be found in large buildings, since a low occupancy rate could be viewed as a sign of failure of the project. Finding the precise size of the incubator is a challenge that a well-elaborated business plan can help to overcome.

2.1.2 GROWING TOGETHER

One of the greatest benefits offered to companies by the incubator process is the opportunity for contacts with other businesses. Interaction among different companies results in an enriching learning process, the sharing of contact networks and even personal support in difficult moments and the infrastructure is one of the factors capable of fostering this synergy.

Wide corridors, coffee bars and restaurants provide space for the people who circulate through the incubator to come into contact with one another, building the informal contacts that will result in a synergy between the client companies and incubator management.

2.1.3 MODULAR SYSTEM

One of the advantages that an incubator can provide to companies is flexibility in the occupation of physical space. The modular system allows a company to occupy a specific amount of space that can be gradually expanded to incorporate other modules as the company expands and requires more space. The modules are prepared with types of material that can be easily assembled and dismounted, such as room dividers and plaster of paris sheets. In analyzing the materials available for building modular systems, one cannot ignore the importance of using acoustically efficient material so as to avoid the possibility of one company interfering with another.

In general, the standard module is a private room. However, many incubators that work with smaller companies that require little physical space allow different companies to share the same space. This shared space is designated as the point and represents a system that can be very interesting for companies that have some degree of synergy between their operations or that are still in the embryonic stage of business development.

The area of each module should be defined on the basis of the type of company the incubator intends to serve and normally varies between 20 and 30m2.

Depending on the nature of the incubator, there will be considerable variation in the types of furniture used and even in the basic infrastructure. For instance, some types of businesses will need such things as water outlets and other facilities in their rooms. It is also advisable to turn the rooms over to the occupants ready for the installation of wall-mounted air-conditioning, so as to avoid a lack of standardization that could be damaging to the façade of the building. At the same time, doors should be wider then usual so as to facilitate entry and removal of materials and equipment.

In the case of multi sector incubators, providing a fully prepared room is a complex task since the needs of businesses vary significantly. Sectoral incubators do not have to cope with this type of problem since the companies they serve will have very similar needs. In this case, investments in basic furniture and equipment can be justified, since different companies will use these items over the years during which the incubator remains in operation.

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2.1.4 COMMON AREAS

Aside from the private areas provided to each company, the incubator normally has common areas that are often linked to the different types of services offered. These common areas provide companies with shared access to many facilities that a still embryonic company operating outside the incubator would not be able to access.

Among these items, one should cite the auditorium, meeting rooms, reception area, workshops, printing and copy center, libraries and parking areas.

In most incubators, utilization of these areas does not involve additional costs. Consequently, the costs of these facilities must be foreseen in the incubator’s operating costs.

The incubator must issue specific and detailed regulations on the use of common areas, carefully defining the rights and responsibilities of all parties involved. In general, this subject is dealt with in the Internal Bylaws of the incubator.

2.1.5 RESERVED AREAS

The flexibility of the modular system demands that modules be readily available to meet the needs of expanding businesses.

Since it is difficult to control demand for incubator services, free modules must always be available so that the incubator can respond rapidly to new business opportunities that may appear during the selection process. Evidently, there are cost implications for those incubators that resolve to maintain a stock of available modules and these must be considered in any evaluation of the sustainability of the incubator.

Parallel to this, there can be a significant need for expanding the physical capacity of the incubator as it consolidates its activities and trademark and as the business incubator movement is strengthened. This means that the incubator must have an expansion plan and the required available space needed to enlarge its facilities.

2.1.6 24-HOUR ACCESS

An aspect of importance to client companies is 24-hour access to their private rooms since each of the companies will have its own specific work routines. Management will have to issue regulations on access to common areas, since these are not normally available on a permanent basis.

2.1.7 ENVIRONMENT

It is essential that the incubator create an innovative environment that will aid in strengthening its mission. Consequently, the choice of furnishings, the architectonic project, and integration with nature are all elements of importance to generating this atmosphere of creativity and innovation. Obviously, creation of a new business is a highly stressful undertaking and adoption of adequate colors, lighting, plants and so forth can make the environment more pleasant and harmonious.

Visual programming that identifies individual spaces, common areas and service areas not only facilitates

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communication with users, but also builds an awareness among them of the need for organizing their work activities, while also serving decorative ends.

Here one cannot fail to recall that the cost of these initiatives must always be taken into account. The process of defining the material to be used must necessarily consider questions of durability, maintenance and replacement costs, so as to avoid future problems. To achieve the desired result, it is often possible to use much cheaper elements such as color variations and alternative materials and installations that facilitate and reduce maintenance costs.

3. SPECIAL FACILITES

Depending on the sector served by the incubator, there may be a need for special facilities. This is particularly true in areas such as biotechnology, chemicals, agribusiness, metallurgy, pharmaceuticals, and so forth. In these cases, both the specific demands of the sector and current legislation must be carefully analyzed before defining the architectonic project for renovation or construction of the building.

Based on these demands, it is possible to define the specific services that the incubator intends to offer to businesses, such as technical consulting and specialized technical services.

FACILITIES AND RELATED SERVICES

3.1. INTERNET

The need for Internet access is common to all client companies. They will certainly need a very stable and high-speed access. Therefore the incubator needs to have a reliable server and a contingency plan for emergencies.

3.2 TELEPHONE

Traditionally, incubators offer resident companies telephone extensions, fax and telephone operator services. Despite the currently abundant supply of telephone lines, the initial costs involved in installing and maintaining individual telephone systems tend to make shared use of these services particularly interesting to embryonic companies.

The incubator’s telephone system will require a switching center and a rate calculation mechanism that will make it possible to charge calls made to each of the user companies. On evaluating the possibility of installing an automatic answering system, it is often worthwhile to analyze the receptionist’s workload to study the possibility of the same person accumulating the functions of telephone operator.

A definition of the number of extensions to be installed in each room will vary according to the nature of the activity of the client company. According to specialists in this field, the system should have one line for every 6 to 8 extensions.

Aside from the regular telephone system, incubators should also analyze the possibility of installing public telephones.

One of the primary aspects to be analyzed in the choice of a telephone switching center is its flexibility should future expansion become necessary. The building plans should also consider the possibility of companies installing their own telephone systems in their individual rooms.

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3.3 COMPUTER NETWORK

One facility that is highly desirable for an incubator is a secure computer network in which companies can store their information. It is important, however, that the system be truly secure, with periodic backups and a contingency plan for critical situations. Aside from the availability of this network, the incubator must also have the maintenance and support services needed by the companies involved.

Just as occurs with other facilities, the activities of the businesses must be considered when defining the number of computer outlets to be installed in each module.

3.4 LABORATORIES

Depending on the specific nature of the incubator, laboratories will be needed for tests and analyses. A computer laboratory, equipped with machines and printers to be used by the companies, will also be necessary. Aside from the laboratories, the incubator may also opt to provide client companies with specific testing and analysis services.

While these highly specialized facilities will normally require voluminous investments, they may well be essential for businesses operating in the chemical and biotechnology fields. In these cases, one possible alternative would be agreements with local universities and research centers to utilize their facilities.

3.5 PRINTING AND COPY CENTER

The availability of shared high quality printing and copying equipment is very useful to both companies and management, since it reduces costs and parallel investments by the companies.

The ideal solution would be to use an automatic system of charging each company for its use of these facilities. Prices must cover the costs of inputs, maintenance and depreciation of the equipment.

3.6 LIBRARY

Though the availability of a library of books and periodicals dealing with the specific sectors served by the incubator is important to the companies involved, the incubator must carefully analyze the costs of maintaining such a facility. Nonetheless, subscriptions to software, journals and specialized magazines to be shared by the resident companies is highly recommended, since this is a factor capable of reducing the costs borne by the businesses.

3.7 MEETING ROOMS

This facility is widely used by companies for internal meetings and encounters with clients. If space is available, the best option is to install smaller support rooms instead of a single large meeting room, since this solution makes more efficient use of the available physical space.

One of the rooms should be equipped with connections to the incubator’s computer network and the Internet, together with a white board for notes and a microcomputer and data show projection system. The other small rooms do not

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have to be supplied with this type of equipment. One item that is quite convenient is a mechanism that will make it possible to know if the room is being utilized. In this case, if it is not possible to install a glass-viewing window in the door to the room, a simple light above the door to the room to be lit when occupied is sufficient.

3.8 AUDITORIUM

The use of the auditorium is not limited to lectures and seminars. When meeting rooms do not have the space required for larger meetings, these can be shifted to the auditorium. Consequently, the furnishings used should make it possible to arrange the auditorium for different types of utilization. Facilities should also be offered for connections to the computer network and the Internet, together with equipment for data shows, sound, projection screen, white board and flipchart for taking notes.

Depending on the policy adopted by the incubator, use of the auditorium and meeting rooms would normally have to be scheduled beforehand and the incubator would opt whether or not to charge the companies for these services.

3.9 STORAGE

In order to avoid storage of material and equipment in unsuitable locations, it is important for the smooth operation of the incubator to reserve specific areas for this purpose. The incubator must have very clear rules on storage, specifying the types of material that can be stored, the time periods and volumes permitted and the responsibilities of the parties involved, together with a very strict system of control over the products stored. These rules should be incorporated into the Internal Bylaws of the incubator.

3.10 STOCKROOM

Aside from the storage facility, the incubator should also have a stockroom for storage and control of the material used on a daily basis.

3.11 WORKSHOPS

Depending on the nature of the incubator, there may be a need for very simple or even highly sophisticated and specialized workshops. Independently of these workshops, the incubator should consider the possibility of installing a building maintenance workshop, equipped with a bench for electric repairs, access to water and an area for services involving wood, resins and painting for example.

Just as in the case of the laboratories, the workshops should also be prepared to provide complementary services, such as technical consulting and building maintenance.

3.12 PARKING

It is important that the incubator have available parking, since the client companies will need to provide comfort and security to their clients. The parking area should be projected with a minimum of 4 spaces per company and one

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space for the handicapped, an area for motorcycles and bicycles. Depending on the type of company served, space for trucks may also be required. The incubator should also consider the possibility of offering a system of controlled entry and departure from the parking area with a security guard at night.

3.13 FACILITIES FOR THE HANDICAPPED

Aside from providing specific parking for the handicapped, the entire building project should ensure that the handicapped would be able to access all of the facilities, including access ramps, doors wide enough for wheelchairs and special bathroom facilities.

3.14 RECEPTION

The main entrance to the incubator plays an essential role in generating a good impression among clients and controlling access to the building. The entrance should lead to a reception area located in such a way as to facilitate identification of those entering and leaving the building.

This area of the building should be equipped with clear indications of the different areas of the building, a bulletin board, data on its locations and the areas of activity of the resident companies and, finally, basic information on the incubator and its partners, together with seating for clients.

Among the functions that can be delegated to the reception is the sending and receiving of fax messages, documents and correspondence and control of such external activities as bank and postal services. It is recommended that there be ingoing and outgoing boxes for controlling correspondence, mail and bank documents. When reception personnel absorb these services, the layout must meet the minimum standards of comfort and security required for these activities.

3.15 AREA FOR EVENTS

It is a common practice for incubators to produce events and, consequently, they need space for such activities as expositions, receptions, parties and the like. These facilities are generally used by the incubator itself, by the client companies or even by the institution’s partners. One alternative would be to have a sufficiently large entrance hall with the flexibility needed to hold such events in that area.

3.16 CORRIDORS

Many contacts begin in informal conversations in incubator corridors. For this reason, wide, well-lighted and ventilated corridors are important for creating an environment suited to interaction among people.

Another important aspect is a system of identification that makes it easy to locate rooms. It is recommended that the system of identification be standardized to avoid visual pollution in the incubator. Some incubators have show windows in their corridors where companies can display their products and advertising material. In order to avoid decharacterizing the environment, the incubator must define very strict rules regulating the use of decorative or even functional objects that may interfere with its visual identity.

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The flooring used in the corridors should be easily cleaned material that is resistant to the intense traffic found at many incubators. It is important that trash baskets be located throughout the corridors and in the common areas of the incubator.

3.17 SMOKING AREA

Since the private rooms do not normally have any free space, the designation of spaces in public areas where smoking is allowed is important. The areas where smoking is permitted or prohibited should be clearly identified.

3.18 MANAGEMENT

Just as the client companies, management must also have its own specific operating space and will also make use of the facilities provided in the common areas of the incubator, such as meeting rooms, storage and software libraries.

Companies are inevitably influenced by management style. For this reason, the incubator should make a point of maintaining well organized environments with decoration suited to the principles underlying the institution, plants and pictures, transforming the environment into an image of what is expected of the businesses.

If the incubator has plans to expand its operations in the future, it must also have plans to expand the area reserved to management, since growth in incubator services will demand a larger management team and, consequently, increased physical space.

3.19 RESTAURANT/ CAFETERIA

A restaurant or cafeteria not only facilitates interaction among companies, but also provides them with the possibility of a more comfortable environment for their workers, while also serving as an informal space for meeting clients.

3.20 KITCHEN

The incubator should have a simple type of kitchen equipped with a sink, refrigerator and equipment that can be used to warm food, such as a microwave oven. The design of this area should give due consideration to its potential for fostering interaction among people.

3.21 LOCKER ROOM

Since some work activities may require the use of suitable uniforms, it is important that the incubator provide a place for changing clothes and taking a shower. The most common solution is to adapt the bathrooms for this purpose. In order to more efficiently organize the physical space of the rooms, it is recommended that lockers be provided where both employees of the companies and the management staff can keep their belongings.

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3.22 BATHROOMS

The ideal solution would be to provide at least one bathroom for women and one for men, both equipped for the physically handicapped. A decision with regard to the number of bathrooms will depend on the number of people circulating through the incubators as well as on the gender ratio.

3.23 SERVICE AREA

A support area should be provided for the general services of the incubator and should be equipped with at least a large sink and workbench. The area should be sufficiently large for a clothesline and for those activities that cannot be carried out in the workshop, such as the painting of larger objects.

3.24 SERVICE EXIT

Just as in the case of the reception area, the service exit is important to creating a good impression of the environment. Consequently, the project should provide for an exit that is independent of the main entrance, thus reducing unnecessary circulation through the corridors. An alternative solution is to determine a different time period for this type of circulation outside the normal operating period of the incubator. The incubator can also use service carts and other equipment in order to facilitate the movement of cargo and access to cars and trucks.

3.25 SELECTIVE TRASH DISPOSAL

Trash baskets should be placed in the corridors while containers and dumpsters can be placed in the service area awaiting the arrival of the public trash collection system. It is recommended that the selective system of trash collection be used, since this is easily implemented.

Cleaning services also include trash collection and should occur at least once a day in each one of the rooms.

3.26 LIGHTING

Though the intensity of the lighting will depend on the type of work activity to be performed in each locality, an effort should be made in the building project to create a well-lighted environment. Here, it is possible to take advantage of such low cost alternatives as natural lighting.

3.27 AIR-CONDITIONING AND VENTILATION

Just as in the case of the intensity of the lighting, adequate ventilation and refrigeration will depend on the type of work activity carried out in each environment, as well as on the number of people circulating in the building. In this case, it is worth considering such alternatives as natural ventilation and installation of systems that can be expanded as the operations of the incubator increase.

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3.28 ELECTRICAL NETWORK

The supply of electricity provided to each of the modules should be appropriate to the different activities carried out by the companies. Since the consumption of one company may be significantly different from that of another, it is recommended that each room have its own meter to measure consumption.

For purposes of incubator security, it is essential that lightening rods be installed in the building and that the electricity network, computer network and telephone system be grounded.

In order to facilitate and reduce the maintenance costs of the electric system, installation of external conduits is recommended.

3.29 SECURITY SYSTEM

Since the incubator is accessible 24 hours a day and a large number of people and volume of material are constantly circulating throughout the building, it is essential that an efficient security system be installed. Here, the final solution will depend on the operations and layout of the incubator. However, most incubators opt for the use of guards, alarm systems and closed circuit television.

It is important to observe that the greater the automation of this system, the lesser will be its impact on the operating costs of the incubator.

The security system should take due account of the locality in which the incubator is installed and the security conditions that the public authority provides to the local community.

3.30 SECOND FLOOR

Should the incubator operate in a two-story building, at least one system capable of moving cargo to the upper floor should be installed. At the same time, emergency exits should also be provided for the second floor.

3.31 FIRE PREVENTION SYSTEM

Depending on the activities performed by the companies, it may be necessary to design the fire prevention system for specific risks, often with carefully defined regulations and control systems. However, some measures are valid for any type of activity, including extinguishers and hoses, water tanks and hydrants, easy access to emergency exits, emergency lighting, smoke detectors and fire alarms. At the same time, a fire brigade should also be trained to act should a fire occur.

Note: One type of service that must be provided throughout the common use facilities of the incubator are cleaning and maintenance. This service can also be extended to the private areas of each company.

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4. FINAL RECOMENDATIONS

§ It is essential that the person charged with coordinating the activities of the incubator possess leadership skills, with the capacity to conjugate the political function needed to deal with the adverse situations that will appear during implementation and operation of the incubator with the capacity to operate as a true entrepreneur since, in final analysis, the business incubator is nothing more and nothing less than a small business.

§ Aside from the motivation of the coordinator, another factor of fundamental importance to its success is its identification with the parent institution. There must be a clear synergy between the objectives of the institution and the reasons underlying construction of the incubator.

§ One problem commonly found among incubators is a lack of commitment on the part of the participating businesses in scheduling utilization of the common use facilities and services offered. One way of resolving this problem is to institute a system of fines for those businesses that fail to submit prior notification of the use of such facilities.

§ In order to ensure that the incubator’s installations will be properly used, it is recommended that companies be obligated to attest to the conditions in which a room was received and ensure that it will be returned in the same conditions.

§ One of the objectives of the incubator is to foster generation of citizen companies that fully respect the rules and legislation in effect. This type of behavior will then serve as an example for other companies included within the incubator.

§ In order to minimize future conflicts, it is essential that the incubator elaborate its Internal Bylaws, setting down rules on its routines and the use of the common and private spaces and services offered.

§ Great care should be taken with the blue prints that define the architectural design of the building, electrical and water installations and the computer network. It is always a good idea to maintain a copy filed in another location outside the incubator. The same procedure should be followed for important documents and files.

§ It is important to keep in mind that the purpose of the incubator is to shelter small businesses. Consequently, the environment should be pleasant and simple, while avoiding all forms of superfluity.

5. CONCLUSION

Though implementation of a business incubator is a challenge to be overcome by the people and institutions involved in the undertaking, a detailed project and consistent business plan will greatly facilitate this task. What this document does is present the optimal infrastructure for operation of a business incubator. During the period of implementation of each incubator, the managing institution will have to cope with highly distinct realities. However, the fact of having to deal with these difficulties and restrictions does not mean that success of the incubator will be limited by its physical infrastructure. As already stated, an incubator is much more than its physical installations!

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