Business Incubator at CED, Dwarka is set up under the Sponsorship from Ministry of Micro, Small & Medium Enterprises (MSME), Govt. of India. Under “Support for Entrepreneurial and Managerial Development of SMEs: Through Incubators” Scheme of DCMSME.
Business Incubator at CED, Dwarka is governed by a Technical Advisory Board (TAB) consisting of industrialists, venture capitalists, technical specialists and managers. The incubator is established to help entrepreneurs in realizing their dreams through state of the art facility available at the institute, business advisory support, mentoring and technical services.
- Help with business basics
- Advisory boards and mentors
- Guidance for accessing funds, bank loans, and guarantee programs
- Comprehensive business training programs
- Help with presentation skills and business etiquette
- Help with accounting/financial management
- High-speed Internet access
- Management team identification
- Networking activities
- Understanding regulatory compliance
- Technology commercialization assistance
- Marketing assistance
- Links to higher education resources
- Links to strategic partners
- Coordinate with Angel investors or Venture capital investors
- Intellectual property management support
Physical Infrastructure: Incubates are provided well-furnished offices. All offices are ready-to-use and come with hassle-free services, including
- Reception services
- Shared meeting rooms
- Dedicated internet access
- Independent working office space
- Business centre services
TECHNICAL & MANAGEMENT ASSISTANCE:
To accelerate the development of entrepreneurial companies, the requisite technical &management assistance will be provided by the center during the first six months. This service will allow incubates to access institute’s faculty resources and gear up their engineering and managerial capability. After the six months period, a total of 20 dedicated hours per month of consultancy will be provided by the Incubator. If the incubate desires to avail these services, the center will charge an additional Rs. 5,000 per month towards these services. Any additional consultancy required by the incubate will be charged as per the norms.
TYPES OF BUSINESSES SUPPORTED:
CED will support entrepreneurs in the following three areas of businesses.
- Social Businesses
- Energy and Environment
- Information and Communication Technology
Selection criteria for incubating companies
The incubates will be selected under three stages of incubation, as under:
- Incubatee with the idea of the product or service.
- Incubatee with fully developed idea and prototype stage.
- Incubatee with a registered company and trying to further develop the product or service.
The following criteria will be applied to consider the selection of incubating companies:
The proposed business should have;
- Good understanding of the market and competition
- Established Pre-Feasibility
- Strong growth potential
- Demonstrable scalable business potential
- Sound financial condition of the incubate
- Promising industry growth rate in the proposed sector
- Significant proven market size
- Identification of marketing, financial or management deficiencies
- At least one full-time person committed to the company
- At least one of the proponents has the relevant professional experience and education
- The proposed technology involves an innovative concept,
- Has a potential for IPR and has a
- Technical expertise and edge
SELECTION OF INCUBATEE:
- Receipt of application from the incubatee
- Application screening by a committee comprising business and technical experts
- Meeting/Presentation by the potential Incubate(s) . At this stage, the Potential incubate will present the product concept and business feasibility
- Applicant is informed whether he/she is selected or rejected by the committee as an incubate.
- Monitor Project Progress and assist incubate with future actions
- Tenancy Agreement
SELECTION COMMITTEE WILL INCLUDE:
- Director of the Incubator
- Faculty Member from the relevant field
- External expert
- Representative from Industry
KEEPING THE INCUBATE FOCUSED
CED has and will ensure a business-like discipline, teamwork effort and attention to details of every aspect of the project, to ensure success. This will be achieved through developing and managing project milestones such as Product concept refinement, Product design, Prototype development, Product testing in laboratories and simulated actual service conditions.
Incubates must prepare and present for review a project plan describing each milestone and corresponding activities along with resources needed for each milestone.
The project plan must be adhered to strictly and corrective actions carefully designed and implemented to correct any deviation. Incubator Management will ensure that the plan is followed properly.
Once the product has been tested and approved to meet the quality and reliability standards, the Incubate may opt to sell it at a lump sum price or engage in serial production.
Option 1: Transfer of Technology
Under this option, the project can be sold against a lump sum amount.
Option 2: Pilot and Serial Production
Under this option, the incubate company can find an investor to do the pilot and serial production. Incubator Management will help the incubate in locating the right financial sources.
The incubator management will have to be consulted before making any legal arrangement with the investor or VC firm. There is a possibility where the VC firm can become an equity partner in that incubate company. The percentage of partnership will be worked out on a case to case basis.
PROJECT MONITORING SYSTEM
- The monitoring system for the incubates will comprise
- Goals set for the existing quarter
- Achievements made against the set goals
- Activities made to achieve the goals
- Factors that contributed to the success/failure of goal achievement
- Financial resources consumed during a quarter
- Goals for next quarter along with the corresponding activities and financial means required to achieve the goals.
GRADUATION OR EXIT CRITERIA
The incubate company will be graduated out of the incubator once it meets any of the following criteria.
- Incubatee has spent 18 months at the incubator and the project hasn’t been completed yet. An additional 2-6 months could be given by the incubator management if they feel that the project can be completed by then.
- Incubatee has successfully developed the prototype and has found an investor or Venture Capitalist to either buy it or take it to the production stage-
- If incubatee fails to meet the quarterly targets twice in a calendar year
- If the review committee decides that the project is no longer viable
- If incubatee violates the tenancy agreement.
Dr. Abha Rishi