In 2015 business incubators provide so much more than desk space: they are the backbone of entrepreneurial spirit and support the success of many fledgling companies across the UK.
What is a business incubator?
Rooted in the US, business incubators date back over half a century and began to appear in the UK in the 1980s, initially providing office space for small businesses. As the concept evolved so did services provided. Today incubators are companies who help start ups to realise their vision and accelerate their chances of survival through significant methods of support. Incubators vary in the services they provide but generally cover these areas of support:
- Provision of office space
- Financial assistance
- Administration assistance
- Networking and contacts
- Marketing and brand building
- Accounting/financial management assistance
- Training and access to education
- Mentoring
- Technology
- Compliance
- Business planning/strategy
Over the past decade the number of operating business incubators has risen significantly. In 2014 nearly 600,000 new companies were registered with Companies House, providing a huge client base for incubators offering support. Surprisingly, however, many people remain unaware of the existence of these businesses and the help they provide.
Why should I use one?
No matter how confident you are, or successful, starting your own business is a tricky affair. A business incubator is like your personal start up hub: a company you can rely to steer you through the necessities of business ownership whilst preventing you from making critical errors that could cost you dear. As a new business owner, being able to tap into your peer’s experience and expertise and the credibility of hooking into existing networks are priceless. With an incubator you don’t have to be alone. You can rely on a company that has thought through all your options, and can help you forge a viable route to success.
Imagine how much easier starting out on your own would be when you can rely on people who know what comes next?
London is the European capital of business incubators, but gradually other UK cities are taking note. As a client of an incubator you can expect to receive sustained support over a long period of time and help to attract clients and investment. Incubators tend to charge fees on a sliding scale basis as a percentage of profits – generally meaning no fees upfront.
Statistically each incubator in London provides support to around 40 start-ups, and chances of survival are around 20% greater with an incubator than without, at 94.77% (Telefonica survey 2014).
Recruitment and the incubator
As the demand for incubator services increases, the key to success is the concentration on specific business areas and niche markets. Tech industries have always made good use of business incubators, and gradually this ideology is infiltrating other business sectors. With the significant growth in the recruitment industry (http://www.initiate8.co.uk/fastest-growing-recruitment-sectors-2015/) a new wave of recruitment entrepreneurs are set to cast themselves adrift with their own ventures.
Initiate8 is a recruitment industry specialist, and business incubator, set up to assist new business owners by ensuring speedy growth and increasing chances of success. We can help you with every aspect of your new venture, 24 hours a day, and expect no fees upfront. If you are a successful recruitment professional thinking of starting your own business, contact us today and let us talk through how we can support your success.
