Effectiveness of Business Incubators for University Students

PROJECT TITLE:
Determine Effectiveness of Business Incubators for University
Students

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
STATEMENT OF PROBLEM........................................................................................................3
RESEARCH AIMS AND OBJECTIVES.......................................................................................4
JUSTIFICATION AND POTENTIAL OUTPUT...........................................................................5
CONCEPTUAL FRAMEWORK....................................................................................................6
Concept of Business Incubation..................................................................................................6
Models of Business Incubation....................................................................................................6
Factors affecting Business Incubation.........................................................................................7
Hypothesis development..............................................................................................................8
RESEARCH METHODOLOGY....................................................................................................9
Research approach.......................................................................................................................9
Research design...........................................................................................................................9
Data collection.............................................................................................................................9
Sampling and data analysis........................................................................................................10
Research limitation....................................................................................................................10
Research plan.............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
According to National Business Incubation Association, Business incubation is a source
of tool for either national or regional economic development. Business incubators can be defined
as a workspace or company that helps in developing new and startup companies by providing
services such as, office space or management training (Hong & Lu, 2016). These services or
programs of Business incubation are majorly sponsored by municipal entities or private
companies and public institutions that involve universities and colleges. Small and medium sized
business or enterprises, (SMEs) are the vital source of employment and innovation that
contributes 30-60 percent in a country’s Gross Domestic Product (GDP) (Curran, Lynn &
O'Gorman, 2016). In Australian economy, they have contributed up to 30 percent of GDP and
have been creating 70 percent of employment. The major purpose of business incubators in
Australia is to develop successful firms that will create the program financially feasible and
freestanding (Piterou & Birch, 2016).
In this project, role of Business incubators in the development of University graduate of
Melbourne Business School is been taken into consideration. Most of the students of Melbourne
Business School desire to establish their own business startups (Aaboen, et.al., 2016). Business
incubators guide them to start up their business in an effective manner so that the plan can be
successful in the long run. The topic of the project is to determine the role of business incubators
in the effective development of the university students (Fukugawa, 2017). This research project
will start with problem statement leading to research aims and objectives. Further, the
justification and potential output of the research will be highlighted to know the future scope of
the study, then conceptual framework of the project that will include Literature Review and
hypothesis development. Lastly, Research methodology will be chosen to get proper data of the
results and to make appropriate analysis of the study that will help in knowing the effectiveness
of the business incubators for university students.
STATEMENT OF PROBLEM
Enterprise growth is the most vital growth for any country to enhance social and
economic development. It helps in creating wealth of the country and promotes capital

formation. In Melbourne Business School of Australia, large number of university graduates
desires to start up their new business and there are some business startup incubators that helps
them to accomplish their goals (Masutha & Rogerson, 2014). From the past few years, business
incubators are particularly playing an important role in establishing new business, facing
business failures and providing platform for the amateurs to aspire their dreams. In Melbourne,
interest in the sponsored business incubators has been developed from the significant potential of
the concept in aspiring large university graduates (Winborg, 2015). The concept helps in holding
out the possibility of linking technology, capital, talent and knowhow for entrepreneurial talent
and to accelerate the growth of new firms. University based business incubators can help the
students in identifying the various dimensions that include, objectives, organization design,
institutional support, sources for funding, staffing and policies and services required to establish
the new enterprise (Weiblen & Chesbrough, 2015). Further, Melbourne Business School aims at
empowering their students to be self employed and reducing the pressure of unemployment. This
can help the students in identifying their talent and can motivate them to do something unique so
that they can have a successful life in future.
This research project helps in knowing the scope of business incubators for the long run.
Further, report helps in determining the role of incubators in the development of University
graduates and how they can useful for students in starting up their new ventures. This study
focus on knowing the utility of new business ventures to enhance the economic development of
Australian economy.
RESEARCH AIMS AND OBJECTIVES
The major aim of the research project is to determine the role of business incubators of
Melbourne in helping the business school students’ in establishing new start ups. In this the
effectiveness of the business incubators will be identified so that their significance can be
identified in the coming years. Thus, major research objectives can be listed as follows:
 To determine effectiveness of business Incubators for analyzing growth of startups
 To evaluate the role of Business Incubators for students of Melbourne Business School
for their business startups