Business Incubators: Supporting University Student Ventures

This project investigates the effectiveness of business incubators in supporting university students, particularly those at Melbourne Business School, in launching their own startups. It addresses the problem of enterprise growth and the role of incubators in fostering entrepreneurial talent. The research aims to determine the impact of these incubators on student ventures, exploring their objectives, organization, funding, and services. The conceptual framework includes a literature review on business incubation, its models, and affecting factors, leading to hypothesis development. The methodology outlines the research approach, design, data collection, sampling, and analysis techniques, with considerations for limitations and a detailed research plan. The project concludes by highlighting the benefits of business incubators for university students and their contribution to economic development.

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

JUSTIFICATION AND POTENTIAL OUTPUT
As the Australian economy is moving towards the direction of entrepreneurial and
technological development, the roles of business school and universities has been diversified in
terms of traditional instructions and research missions (Salem, 2014). Universities plays an
important role in bridging the gap between industry and their students and providing them path
to walk once they start dealing the real world. Apart from aspiring students to seek jobs,
universities also run business incubators to provide support to their students who wish to start
their own business ventures (Jacob, 2017). University based incubators encourages enterprise
development by doing appropriate research to start up and technology transfer. This helps the
students in getting proper guidance for the new business so that they can establish their startup in
a significant manner. Numerous countries have been promoting business incubators for their
university graduates so that they can seek their own business ventures and to revitalize their
economic growth. From the past years, large number of business incubators has been established
in Australia and are being operating successfully to enhance the competitive effectiveness and to
adapt to changing business environment (Rubin, Aas & Stead, 2015). Additionally, various
researches have been done on this to know the impact of these business incubators on the
business environment.
This research is being conducted to identify the benefits of business incubators for the
university students. This research project will help in studying the utility of business incubators
in the coming years for the university students in establishing their start ups. Through this study
it can be analyzed that these business incubators can helps the countries in improving their
economy by developing their own businesses. Thus, this project focuses on providing business
assistance through business incubators to the university graduates so that they can perceive their
own business ventures and can contribute effectively in increasing the development of the
country (Jamil, and et.al., 2016). Business incubators for the university provide a unique way to
the graduates to facilitate the creation and growth of new business idea. Further, business
incubators also provide operational, strategic and infrastructure facilities to the new aspiring so
that they can achieve their dreams in an effective manner. This study will also be beneficial for
the future so that various other researchers can take the assistance from it while preparing their
own research projects and can start the work effectively.

CONCEPTUAL FRAMEWORK
Concept of Business Incubation
The literature review on Business Incubators has been effectively developing due to
growing need of new business creation in terms of economic development and job creation.
Business incubators are the process in which they support the progress and development of
enterprises in their early phase (M’Chirgui and et.al., 2016). These Business Incubators provides
these new entrepreneurs a conducive environment for developing their new enterprise. Further,
they provide assistance in establishing the enterprise at minimum costs and boost their
confidence. The concept of business incubator started with the intention of resource sharing
initiative, but their role has been evolved during the coming years and has become an important
tool that provides various services like, consulting, training and networking (Mrkajic, 2017).
Business incubators act as a venture capitalist that invests in management rather than just idea.
They use various tools and methods to know the market potential so that they can have detail
information regarding the business environment.
Business incubators are majorly of two types, namely For-profit incubator, Non-Profit
Incubator. For Profit incubators are the one that takes on high potential entrepreneurs and train
them for a three-month program. Here, the entrepreneurs cannot work according to their rules but
them to invest much of their time during the stay so that they can make the best of it (Uy, Foo &
Ilies, 2015). This approach pays for the entrepreneurs as in this training period they get seed
funding, advice from the experts, network willing for fund. Most of the applicants are attracted
towards these incubators so that they can learn various things regarding various business
ventures. Majorly corporate and private investors are For-Profit incubators (Lose & Tengeh,
2015). Secondly, Non-profit Incubator, these incubators are majorly related to the university
incubators that provide training for a particular period of time to the new aspirants and also
provides various other assistance such as workspace, funds facility, technological assistance so
that the fresh candidates can start up their own business in an effective manner (Wolf, 2017).
These incubators are more beneficial as their prime focus is to provide proper guidance to the
university graduates so that they can effectively contribute in the economic development of the
country.

Models of Business Incubation
Business Incubation has become a big name when it comes to entrepreneurship. Thus,
various models have been proposed to understand the appropriate functioning of the business
incubation. However, few of the models have been taken into consideration to understand the
process in broader terms (Cantù and et.al., 2015). First model is, InfoDev Process Model, this
model was developed in 2009 for building business incubator networks in worldwide. The major
areas in which this model works are financial assessment, Agriculture business assessment,
climate technology, Women Entrepreneurs and Mobile innovation. They provide business
coaching to the entrepreneurs so that they can start their business effectively in the long run.
Second model is Jones’ Incubation Value Chain Model; this model was established in the year
2010 (Winborg, 2015). This model is in four stages; firstly, Pre incubation where they search for
would be entrepreneurs. Secondly, Early Stage Incubation, this stage includes access to funding,
business support, financial, marketing, mentoring etc., and this does not take more than a month.
Thirdly, Classic Incubation, these take 2-3 years to access service and resources of typical
business. Lastly, Graduate Program, after graduation entrepreneurs can get special business
support and they can also get some benefits from the tax and government policies (Fukugawa,
2017). Third Model is, Chandra and chaos’s Incubation and External Environment Model, this
model was established in the year 2011 and this model involves 4 key players, that are,
Government, Business Incubator, Entrepreneur and Universities. Government and University
Incubation is generally done with the intention to improve the economic growth and provide
better job opportunities. While Business Incubators and Entrepreneurs provides funding access to
the new applicants and also provide various other assistant that they need to start their new
venture.
Factors affecting Business Incubation
Although Business Incubators have been playing an important role in establishing new
business but there are few factors that affect their success. First and the most important factor is,
Capital Attraction, it is a very difficult task for them to attract the investors in cooperating them
to realize the targets of the organization (Curran, Lynn & O'Gorman, 2016). However, in any
business set up capitals plays an important role through them can start their ventures? Thus,
Capital affects the business incubators in achieving their targets.

Secondly, it is important for business incubators to arrange funds for business from
government so that they can help the new aspirants in achieving their desires. However, it is not
an easy task to deal in government resources thus affecting the business incubators. Thirdly,
establishing relations for business with suppliers and governments is another significant issue
(Hong & Lu, 2016). These factors also hinder the functioning of business incubators as it is
important to make contacts with the related companies and suppliers for starting the new start up.
Lastly, Humanitarian management, one of the most important measure is the Humanitarian or
human resource management. No firm can survive for long without the assistance of Human
resource. More specifically, in the new business venture it is crucial to have an effective team of
staff that can help the entrepreneurs in achieving their group task. Thus, all these factors play an
important role in the performance of business incubators (Jacob, 2017).
University students need to make the proper use of these incubators so that they can
aspire their dreams and can establish their new start ups. Through this they can contribute
effectively in the economic development of the country and can also reduce their tensions from
the cause of unemployment by starting their own ventures.
Hypothesis development
The above evaluation clearly revealed the role of business Incubators in growth and
development of small business enterprises. On the basis of above evaluation the following
Hypothesis can be developed:
To determine effectiveness of business Incubators for analyzing growth of startups
H1: Business incubators are effective for growth of startups
H0 Business incubators are not effective for growth of startups
To evaluate the role of Business Incubators for students of Melbourne Business School for
their business startups
H1: Business incubators play a significant role for students of Melbourne Business School for
their business startups

H0: Business incubators do not play a significant role for students of Melbourne Business School
for their business startups
RESEARCH METHODOLOGY
Research approach
Inductive and deductive research approaches are commonly applied in research studies to
attain effective and well defined results for the analysis. The inductive study is the one which
focuses on developing clear analysis of the research issue through research questions which
helps in evaluating unique research ideas (Jamil and et.al., 2016). Deductive approach on the
other hand applies hypothesis testing measures in the research to efficiently analyze and validate
the research issue. The present study will be applied deductive research approach whereby
secondary and primary research data will be used for hypothesis testing and research evaluation.
Research design
The major research designs includes exploratory, descriptive and explanatory. Each
research design has unique features and attributes for research progress. The presents study
focuses on analyzing the role of business incubators for students of Melbourne University for the
start ups. Descriptive research design will be undertaken in order to efficiently analyze and
examine the research issue. The stated design will help in attaining vivid and wide data on the
topic.
Data collection
This is one of the most significant aspects of undertaking research. Valid and reliable
data helps in attaining accurate and reliable results for the study. The present study will adopt
both qualitative and quantitative research methods for the analysis.
Primary data is the one which is fresh and is collected from the population. It is collected
for the first time and hence is highly reliable and accurate. For the present study primary data
will be collected from the students of Melbourne University. 25 students of business course will
be selected and will be surveyed through questionnaire. A well structured questionnaire with
open and close ended questions will be developed and students will be surveyed on the basis of
the stated tool.

Secondary data collection helps in attaining past data which has already been published
in journals, books or online sources. It helps in attaining relevant information on different aspects
of the research. Secondary data for the current study will be collected from different sources such
as books, journals, online websites, and university database and so on. The researcher will ensure
to collect all the data from reliable and authentic sources.
Sampling and data analysis
The present study focuses on analyzing the role of role of business incubators of
Melbourne in helping the business school students’ in establishing new start ups. In order to
effectively attain the stated objective a sample size of 25 business students will be selected.
Random sampling method will be applied to attain the reliable and unbiased result for the study.
Data analysis will be done using qualitative and quantitative method. The stated measure will
develop an effective analysis and evaluation through thematic basis. The findings of the study
will be presented using the thematic analysis (Mrkajic, 2017). However table and graphical
represented of the data will help in attaining a clear understating of the outcomes.
Research limitation
Research analysis is a challenging task as it focuses on attaining varied knowledge and
information on one topic and structures the same to attain reliable results. The research limitation
for the present study is regarding funding and time. The topic has significant scope of research
however due to limitation of time and budget the sample size f the study has been kept to 25
students and the time frame to 3 months.
Research plan
The present study will be undertaken in a structured and well defined manner. The
research plan for the study will be:
Task Name Duration Start Finish Predecessors
Research Plan 90 days Mon 5/28/18 Fri 9/28/18
Problem evaluation 7 days Mon 5/28/18 Tue 6/5/18
Understating the concept of
business incubator 7 days Wed 6/6/18 Thu 6/14/18 2
Drafting aims and
objectives for the research 3 days Fri 6/15/18 Tue 6/19/18 3

Undertaking secondary
research 15 days Wed 6/20/18 Tue 7/10/18 4
Contacting University for
primary data collection 3 days Wed 7/11/18 Fri 7/13/18 5
Conducting survey 20 days Mon 7/16/18 Fri 8/10/18 6
Structuring primary data 7 days Mon 8/13/18 Tue 8/21/18 7
Literature review 10 days Wed 8/22/18 Tue 9/4/18 8
Compiling draft copy 5 days Wed 9/5/18 Tue 9/11/18 9
Review and feedback 6 days Wed 9/12/18 Wed 9/19/18 10
Improving the solution 5 days Thu 9/20/18 Wed 9/26/18 11
Submission of final report 2 days Thu 9/27/18 Fri 9/28/18 12

CONCLUSION
This research is being conducted to identify the benefits of business incubators for the
university students. This research project will help in studying the utility of business incubators
in the coming years for the university students in establishing their start ups. Through this study
it can be analyzed that these business incubators can helps the countries in improving their
economy by developing their own businesses. Thus, this project focuses on providing business
assistance through business incubators to the university graduates so that they can perceive their
own business ventures and can contribute effectively in increasing the development of the
country. The above evaluation clearly revealed the role of business Incubators in growth and
development of small business enterprises and start up businesses.

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