Importance of Incubation Centers for Indian Start-ups


Incubators are non-profit organizations that assist start-ups in their growth and development. They act as a support system for early-stage enterprises, providing them with technical and financial assistance. They are intended to help entrepreneurs succeed and expand by providing a variety of business support resources and services, which may include things like physical space, money, shared services, coaching, and networking connections. They’re frequently a fantastic way to raise money from state economic development coalitions, angel investors, and other investors.

Growth of Incubation Centres In India

India has the 3rd highest number of incubators with over 250 incubators being present in India. Since their inception in the 1950s, business incubators have sprung up all over the world, with governments frequently supporting them as a method of promoting economic development. The Department of Science and Technology (DST) of the Indian government originally invested in Science and Technology Entrepreneurs Parks (STEPs) in the 1980s, and subsequently in Technology Business Incubators in the early 2000s (TBIs). Over 60 TBIs have been financed by 18 DST so far. Most are headquartered in academic institutions, while some, like the Indian Angel Network, are public-private collaborations with various sorts of ‘host’ groups. In addition, India is seeing an increase in the number of private incubators founded by entrepreneurs, investor networks, and businesses.

Importance of Incubation Centres for start-ups

The following can be considered some of the major benefits that a start-up can receive with a incubations centre :

Access to Network of Experts

  • When a startups joins a well-developed ecosystem, such as an incubator, they receive access to mentors with extensive experience. Mentors help entrepreneurs turn their ideas into viable, profit-generating goods.
  • Further Exceptional concepts created by entrepreneurs become functional solutions with recognizable paying clients with the help of mentors’ expert suggestions.

Mentorship Support

  • A new entrepreneur frequently need guidance on the intricacies of beginning a business. Beyond the technical solution for a problem, numerous elements of business, such as marketing, sales, business growth, operations, and finance, must be properly understood and prepared for a first-time entrepreneur.
  • An entrepreneur at an incubator gets access to domain specialists whose help can lead to the development of a superior product.

Validation of Idea

  • A founder’s idea is always the greatest, and he or she frequently deems it innovative and without flaw. However, this may not always be the case. Every concept must be tested to see if it is viable. There are occasions when a creative concept does not have commercial viability or does not solve a compelling problem.
  • An incubator may assist an entrepreneur in determining whether his invention can meet market demands, doing market research to establish the optimal combination, receiving feedback, and developing a market-ready prototype.

Co-working Space

  • An entrepreneur is usually cash-strapped. Investing in a permanent office at this level is too expensive, therefore incubators with their co-working spaces become a popular choice.
  • A thriving and a melting pot of various ideas may be found at a co-working space with a lot of other companies and entrepreneurs. Entrepreneurs in incubators frequently encourage one another in their pursuits and assist one another in navigating difficult times.
  • Incubators frequently foster long-term friendships among entrepreneurs working on a variety of projects.

Effect of Incubation Centres on Indian Start-up Industry

Over the last five years, the number and variety of incubators in India has increased dramatically. Government-funded university incubators such as SID at IISc Bangalore and SINE Bombay focus on commercializing research or developing a culture of student entrepreneurship. Commercial co-working spaces, such as BHive in Bangalore, corporate incubation programs, such as Reliance Gen Next, and an emerging pool of investor-led accelerators, such as Morpheus or Axilor, are all assisting in the development and exploitation of the entrepreneurial hubs in rapidly growing start-up communities.

The following are two great instances of the influence of business incubators on the Indian start-up scene:


NASSCOM has launched an ambitious campaign called “10,000 Startups” with the goal of ten-folding India’s startup ecosystem. Google, Microsoft, Intel, Verisign, and Kotak are among the sponsors of the initiative. Over the next ten years, 10,000 Entrepreneurs aspires to provide incubation, support, and investment for 10,000 startups in India.[1]

More than 150 technology firms have benefited from the program, which has aided in the raising of money, acceptance into, discovered clients, acceleration programs, and onboarding of members.

  • iSpirt

iSpirt is a think tank committed to the promotion of current Indian software product firms. NASSCOM, on the other hand, is both a trading organisation and an industry association. They are currently concentrating on emulating Silicon Valley’s success in India, driven by pioneers such as Sharad Sharma.[2]


Incubators are designed to aid startups in their development by assisting them in achieving their goals and operating more effectively. While the United States is the main incubator center, emerging nations such as India are not far behind, since the concept is progressively gaining traction there as well. China and other Asian nations have witnessed the influence of incubators on culture as well as how they have aided in economic progress. Even though there has been a considerable growth in awareness of incubators, there is still a long way to go because many nations are still unfamiliar with the notion.



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