International Incubator
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- Bertha Gilmore
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1 International Incubator This document shall be seen as a proposition for how an international incubator shall be set up. The international incubator will capture the potential of international competencies living in Sweden and support them to develop and grow new enterprises with international focus and thereby contribute to the development of an international environment for new businesses. The document is based on the outcome of the prestudy managed by Lunds NyföretagarCentrum during 2014 and the report Förstudie i-lift. 1
2 Innehåll DEFINITIONS... 3 VISION... 3 PURPOSE... 3 GOALS... 3 FLOW of new ideas... 3 GROWTH... 3 DRIVE INTERNATIONALIZATION... 4 TARGET GROUPS... 4 INCUBATOR STRUCTURE... 4 Physical space... 4 Time schedule... 4 Organisation... 4 Governance... 5 RECRUITEMENT /ADMISSION PROCESS... 5 ACCEPTENCE CRITERIA... 5 SERVICES OFFERED BY THE INTERNATIONAL INCUBATOR... 5 Basic infrastructure... 6 Business advice... 6 International entrepreneur networks... 7 International business education program... 7 International business service... 8 The meeting place for international entrepreneurs... 8 Immigration matters... 8 INCUBATOR ORGANIZATION... 8 ECONOMY... 9 Cost of establishing and running the International Incubator... 9 Possible sources for Financing of the International Incubator
3 DEFINITIONS The international incubator or the incubator is an organisation managing several different services to contribute to the growth of new companies. An incubator company is a start-up company (or team of persons with a common business idea) that get access to the services provided by the international incubator. VISION The international incubator shall be the leading business incubator for the international community and shall offer the best environment for commercial development of international start-ups in the service sector. PURPOSE The purpose of the international incubator is to: Satisfy the clearly stated requirements from European, Swedish and Regional authorities to increase the internationalisation of start-up businesses in the region. Capture and build successful companies on the potential of international competencies residing in Sweden. Develop an international environment for new businesses. Facilitate a portfolio of services for international entrepreneurs to support them to develop their ideas in an international environment, giving them the same conditions as if they were native Swedes. Capture business ideas with international focus and connect them with international experience and competencies. Create and develop a natural meeting place for international competencies, entrepreneurs and ideas. GOALS FLOW of new ideas Screen more than 50 international business propositions each year. GROWTH 50 % of the incubator companies shall grow their turnover with more than 50% each year. Release more than 15 viable companies that are able to survive and grow independently, every 18 months. 3
4 Create more than 100 new job positions in the incubator companies, every 36 months DRIVE INTERNATIONALIZATION More than 50% of the incubator companies turnover shall derive from international business one year after the first commercial launch. The international Incubator shall be the preferred meeting place for international competencies and entrepreneurs in the Swedish innovation system and thereby the natural meeting place for international start ups in the service sector. TARGET GROUPS The international incubator shall primarily focus on individuals who has an international background, with specific competencies and experiences that are not being recognised and utilized, at a satisfying level, by the Swedish business society. In order to focus activities, the incubator will concentrate on groups with high competence level and a temporary assignment in Sweden International students and scientists (Academic world) Accompanying spouses. (Business Society) Returning expats/repats. (Business Society) Highly educated and/or experienced immigrants (Unemployment society) For clarity, this does not mean that we recommend to exclude native Swedes as members of the teams and incubator companies. A sound mix of experiences and knowledge is most often beneficial to manage the needs to build a successful team. INCUBATOR STRUCTURE Physical space The international incubator shall reside in a dynamic, modern, flexible and open environment easy to access for entrepreneurs and visitors. The incubator shall have room for start-ups in separate rooms. Areas for meetings and networking shall be available in close connection to the offices. Time schedule Total time for the international incubator project should be planned for minimum of 3 years. The client companies should plan for a maximum of 18 months in the incubator Organisation All staff working with the Incubator must as a minimum have personal international business experience. Non Swedish background and/or living several years in a foreign country/culture is regarded as an important strength. 4
5 The manager for the incubator should spend 100% of working time in the incubator. Specialist competencies will be delivered on a consultancy basis, when need is identified. A strong network, in foreign countries and in the international communities in Sweden is of vital importance. Governance A Governance board shall be established, consisting of representatives from stakeholders like financing parties, trade and industry, the municipality, the university and the business region. RECRUITEMENT /ADMISSION PROCESS A structured documented process for selection of the ideas and clients who are judged to be able to contribute to the goals of the incubator is the basis for good results. Screening of candidates will involve relevant knowledge and competence from the specific country/ region and will follow certain acceptance criteria. There shall be a focus in business ideas that can be commercialized within 3-12 months. ACCEPTENCE CRITERIA A list of criteria that has to be fulfilled by the candidates, who apply for the incubator, is the basis for selection. The list should include components like; Does the candidate belong to any of the identified target groups. Has the business idea an international potential. Has the business idea a general potential of business growth. Potential to include international competencies. Entrepreneurial characteristics and readiness to take on and manage the challenges Is there an openness to take business advice Openness for provided Advisory Board Overall contribution to the goals of the Incubator The screening process shall follow a specific documented process that will steer and secure high and consistent quality of business ideas and entrepreneurs. SERVICES OFFERED BY THE INTERNATIONAL INCUBATOR The international incubator shall deliver services that enables the international clients, from the targets groups, to establish and grow their businesses with the same precondition and possibilities as a native swedes. The offer from the international incubator shall be focused on the following areas; Basic infrastructure Business advice 5
6 International entrepreneur networks Training/education International business support Meeting place for international entrepreneurs Immigration matters Basic infrastructure Office Rooms in a flexible dynamic environment with room for international entrepreneurial teams. General office services like Internet, printer/copyer, etc.. Meeting rooms and open spaces. Business advice The goal is to be able to provide business advices at no cost for the incubator companies. At some level costs will though arise and will then be handled directly between the incubator companies and the provider of the service. International business coaches A number of internationally experienced business coaches, who have; Experience from international business and can demonstrate good results. Education on University level, preferably an international degree. Foreign background or Swedish. Open for innovative challenges in an international environment. Understand Swedish Innovation system including the administrative language. The business coach should have good experience of speaking and writing in English. Coaches should be specialists in areas closely related to acting on the international scene, like international marketing, specialist on a specific continent or country, international Intellectual property, etc, etc. Coaches should be working as consultants to provide advice on an hourly basis. The Incubator shall build a network of competent International business coaches that can provide advice in the most frequently addressed areas. International advisory boards Each incubator companies shall have an Advisory board as a sounding board and discussion partner in relevant matters. The advisory board shall consist of 3-5 internationally experienced competencies and will meet 6-12 times /year as well as being available for the incubator companies on a when needed basis. Members of the advisory board will be recruited from the international business network supporting the incubator. 6
7 Mentorship program As being a part of the international incubator the incubator companies shall have access to a mentor program. In this program the incubator companies are matched together with a carefully selected mentor, which they will meet monthly and work together with during their time in the business incubator. Financing and fund raising The international incubator shall be able to give advice in matters related to finding funding solutions for the incubator companies. Specific knowledge about finding and writing applications for funding and scholarships shall be available for the incubator companies. The Incubator shall create a specific Funding Network, by building knowledge about and establishing cooperation with different funding organisations and groups of potential investors. International entrepreneur networks Existing international networks for entrepreneurs will be important channels to create links to entrepreneurs, knowledge, experience and resources in other countries. The incubator shall develop cooperation with for example; YBI - Youth Business International - a global network active in more than 60 countries and has an established cooperation with NyföretagarCentrum. EBN - European Business and Innovation Centre Network, 250 members in Europe. NBIA National Business Incubation Association, with 2000 members in 60 countries. Business Sweden Offices with reps in 57 countries globally Invest in Skåne Support international business in Skåne SISP - Swedish Incubators and Science Parks and other incubators active in Sweden. The Incubator shall also develop cooperation with the local Academic world like Sten K Johnson Centre for Entrepeneurship, FENA, VentureLabs and LU Open. International business education program A series of lectures on relevant subjects shall be delivered to the incubator companies on a regular basis. Subjects identified as important are; Business Law & Rules in Sweden SFI for Business. Formal authority language & business terms Marketing in specific continents & countries Sales in international perspective Cultural differences and business culture in different countries Business administration in general Negotiation behaviour in different countries Presentation techniques 7
8 Teachers shall be recruited from the incubator network and should be specialists in specific areas or business coaches with specific experiences. International business service The International Incubator shall be able to deliver knowledge and advice in business areas focussing on mandatory rules and regulations that could differ between countries. The aim for these services is to be able to give a first initial advices and guidance. Accounting advice Through an established cooperation between the Incubator and some of the globally active consultancy firms in this field (the big four), advice can be given both in Sweden and in most of the countries where the incubator companies plan to be active. Legal advice Cooperation with international Law Firms and Attorneys with business focus shall guide the incubators with advice in legal matters, disputes or similar. Translation assistance Through cooperation with translators, the incubator shall be able to offer business related translation services in the most common languages. The meeting place for international entrepreneurs The incubator shall have the ambition to create both a physical and a virtual environment that will be the natural and preferred meeting place for the international incubator community. A place where you can share and discuss business ideas and experiences. The place to visit when you want to update yourself on the latest news and activities within the international incubator society both in Sweden and in in the international incubator network. Immigration matters Immigration matters is one important component that hinders international entrepreneurs to start businesses. The Incubator can NOT be involved in finding solutions in these matters. However, the incubator should have basic knowledge about the immigration system in Sweden and possibly assist entrepreneurs in navigating through the system. INCUBATOR ORGANIZATION To run the International Incubator three major areas has to be managed. Incubator Manager; Responsible to achieve the set goals Administration; Coordination of activities, managing office services, etc. Economy; Accounting and economical reporting. Depending on the size of the Incubator, there is a need for 1-2 persons to do the tasks at hand. Recommended at starting point. Manager, 1 person min 75% FTE Admin / Economy, 1 person min 50% FTE 8
9 Specialist consultants will be contracted for the incubator to manage and provide the specific tasks and services as described in the sections above. ECONOMY Cost of establishing and running the International Incubator A separate Project Plan will describe International Incubator as a project and specify; Scope, Time and Cost. Possible sources for Financing of the International Incubator. Organisations that will benefit from the output of the International Incubator should participate in the funding. Funding from the private sector would be valuable in order to bring real business demands to the table early in the process. The incubator companies shall pay a monthly fee for the basic infrastructure and the services provided. 9
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