B) History, analysis and success factors of the best practice
The entrepreneur, as a majority owner, has the control of the company, while Innovation Factory, as minority shareholder, remains in the company for the first 3 years in order to continue to support the company in its start up phase. After the 3 year period the shareholders together decade on a most appropriate ‘way out’ mechanism for Innovation Factory. Innovation Factory: the role of the incubator on the way to business realization Below are the most crucial variables which contribute to the realization of a business dream1: 1. resources; 2. competences; 3. definition of a business idea; 4. formation of entrepreneurial skills. 1) Innovation Factory and resources According to performed studies, success of a company is conditioned by availability of various resources: financial, technical, and managerial ones. More unique, inimitable and irreplaceable resources company owns higher is its competitive advantage on the market. Innovation Factory’s approach to providing a support to potential entrepreneurs is initially focused on determining jointly which direction potential entrepreneur should follow and which activity should he/she start first and only than which type of resources would be the most appropriate at the given moment. Innovation Factory has the objective to finance the project differently than Venture Capitalist would finance. It does not provide financial resources on free disposal to the potential entrepreneur but it covers the services that are necessary, such as computer, office, collaborators. Experience of modeFinance, i.e. Mr. Ciprian: ‘In the phase of creating a business dream, researcher does not need financial resources but effective comprehension on what he is about to do. If I have received the financial support without knowing the market that I was about to face, stages of development of my company, competitors, I would have probably thrown away the money and time without reaching the result (…).Financial resources have served me in a later stage especially for sustaining the utility costs (computers, salary for our collaborators, marketing and communication expenses etc.). If we have not received the support of Innovation Factory once we have determined which way to follow we would not have been able to sustain our further activities’. 1
Source: “Evidence from Innovation Factory experience of AREA Science Park in Trieste”, Francesco Castellaneta
Innovation Factory: from a business dream to a business plan
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