abi ppt 2008-naip-partnership

Agri-Business Incubator (ABI)

Essentials of Business Plan &

Partnership Proposal with

ICAR -BPD Units

under NAIP Component 1

1. Executive summary

2. Vision, mission, objectives

3. Business Model

4. Marketing Plan

5. Operational Plan

6. Administration/Organization Plan

7. Financial and Investment Plan

Essentials of a Business Plan

Items Local Economic Development Incubators

Academic and Scientific

Incubators

Corporate Incubators

Private Investors’ Incubators

Goal Non-profit Non-profit For Profit For Profit

Main Activity Mixed-uses High-Tech High-Tech High-Tech

Objectives Job creation

Reindustrialisation /revitalisation

Economic development

Support t

o particular target groups or industries

Development of SMEs and clusters

Commercialisation of technologies

Development of entrepreneurial spirit

Civic responsibility

Image

New sources of finance

Develop entrepreneurial spirit among employees – keep talents

Monitoring - access to new technologies and to new markets

Profits

Profits by selling stocks from a portfolio of companies allowing risks to be spread

Co-operation between companies within the portfolio




Incubators

Corporate Incubators Private Investors’ Incubators

Targets Small commercial craft or service companies.

In some cases, high-tech companies

Projects internal to institutions prior to company creation

External projects

Internal and external projects, generally related to the activity of the company.

Technological start-ups generally ICT related

Offering Hosting and shared services

Administrative assistance

Consulting

Eventually:

Coaching –training- networking

Access to finance

Concept testing

Technical advice and support

Intellectual property advice

Seed capital

Basic management advice

Eventually:

Access to business angels and venture capitalists

Financial resources

Prototype and market testing

Access to commercial markets

Eventually:

Long-term strategic partnerships

Eventually:

Access to business angels and venture capitalists

Management and strategy advice

Supply of one or several types of finance and search for complementary financing

Personal networks

Eventually:

Hosting and administrative assistance

Access to industrial networks

Strategic advice

Coaching

Hosti

Access to industrial networks

Strategic advice

Coaching

Hosti

Legal services, public relations, recruiting, etc




Incubators

Corporate Incubators Private Investors’ Incubators

Key Problems Durability –lack of resources stability

Quality of management and provided-services - dependent on the quality of the manager

Governance, risk of conflicts about the objectives, bureaucratic red tape, time spent in negotiating with the different partners

Legitimacy inside the institution

Legal status, governance, independence and operational flexibility

Income sources

Management quality

Access to external resources and networks

Strategic position of the incubator for the corporate structure

Management independence and ability to mobilize internal resources

Durability of the of the incubator’s mission

Conflicts about the objectives between the owners / the managers of start-up or the company

Quality of projects & sourcing

Level and conditions of the incubator payment in comparison with provided services

Valuation of the incubator’s participation at entry and at liquidation

Durability of the incubator

Trends Regular development

Increasing territorial coverage

Rapid development under the aegis of public programs

Testing the concept in numerous companies

Likely to develop

High levels of consolidation and restructuring of the sector

Still looking for a successful model


Why Business Incubation

Business incubation is adopted as a tool for innovation and entrepreneurship for varied reasons, the most common of which are:

• Technology transfer• Technology commercialization and adaptation • Economic diversification, or to grow a particular

sector • To reduce business failure rates – typically, in

quality business incubation environments, up to 85%+ of firms that have been incubated survive

• To create employment and wealth • As a test bed or catalyst for SME development

Defining the Incubator’s Focus

Definition of the incubator’s focus determines the structure and types of services offered. An incubator can be classified as

Traditional IncubatorTechnology-based IncubatorMixed IncubatorSocial IncubatorAgribusiness IncubatorSectoral Incubator

Key Issues

Definition of the incubator’s focus must consider the local circumstances in which the incubator is to operate and the region’s strategic objectives

Vocation Weaknesses Potential Leading Institution Entrepreneurial Culture:

• Phase 1 – Strategic Decisions • Purpose• Focus• Operational Mode• Locality• Stage of the Enterprises

• Phase 2 – Tactical Decisions • Legal Status• Documents• Organizational Structure

Modeling a Business Incubator

Defining the Stage of Enterprises to be supported through BPD Units

The process of creating and developing Businesses

Conception

Emerging

Growth

Consolidation

Defining the services to be provided in BPD Units

I a. Consultants and Advisers b. mentoring group c. The advisers

II Management/Strategic Support Programs a. Assistance/Consulting in Specific Areas – List of Services

Access to databases and networks Joint purchase of materials Business diagnostics Publicity and marketing Information on lines of incentives and financing Market information/research Business guidance and consulting Legal and accounting guidance Registration of trademarks and patents Support for the preparation of business plans Testing services, validation

b. Training III Infrastructural services a. Office b. Lab/production space c agricultural land d. equipment access

Defining the Location

The best definition of the preferred location is choosing an area that satisfies the incubator’s current and future needs. The location depends on the incubator’s focus, since the companies’ activities may demand characteristics found in few of the region’s localities.

Urban Suburban Rural

Key Issues

Infrastructure Flexibility: Focus: Master Plan

Defining the Organizational Structure of BPD Units

To define a structure that makes management ofthe incubator possible. There are two groups of activities generally present in an incubator:

Those related to operation of the incubator as an independent organization (a business); and Those related to developing the incubated companies.

This normally composed of three managerial levels

Board of Directors:Incubator ManagementConsultant Committee:

Revenue Model for ABI IIAM

Revenue from tenants Rents/lease

Revenue from sharing in client success-equity/royalty

On-going government or donor funding

Membership fee/Franchisee fee

Service charge- Consultancy/Testing etc.,

NEXT STEPS

• Collate, analyze management, Technical & market feed back

• Develop draft Business model

• Develop a draft approach & responsibility for detailed plan development

• Identify the Key resource people in & out

• Final proposal submission to NAIP

ABI-ICRISAT

ABI-ICRISAT Partnership Proposal

to

ICAR-BPD Units through NAIP

What we can offer

• Technology & Business module package

• Co-Business Incubation

• Handholding of the BPD Units/BIs

• Capacity Building on Mgt, Operations

• Business Consultancy & Networking

• Monitoring & Evaluation

Technology & Business module package

• Identify 5-10 technologies for Business Incubation

• Assess the market potential & its viability

• Select 2-3 technologies for commercialization

• Develop a package to promote the technology through business/technical services

Co-Business Incubation

• Co-marketing with common brand– Website management

• Entrepreneurship awareness camp

• Focus media marketing

• Publicity (press/media/exhibits)

• Help Desk & Direct marketing

Handholding

Incorporation of systems

• Establishment of BPD/BI units

• Recruitment of staffs

• Induction program for staffs & team

• Mentoring, coordinating & facilitating

Capacity Building & Training on Business Incubation

• Sensitizing on Business Incubation & Business Plan preparation for 2 days (Different Modules)

• Training & Establishment of Incubators – Strategy, Client servicing, operations, establishment,

marketing, graduation, funding & financial management

• Gap identification & Special Training through domestic & International partners (Infodev & NBIA Network)

Monitoring & Evaluation

• Benchmarking

• Reporting & evaluation through online software

• On site monitoring & evaluation

• Governance meeting (Twice a year)

• Team building & motivation– Best incubatee / Incubator award– Get togethers & networking

What is our Background

• ICRISAT

• CGIAR

• PPPP (Public-Private People Partnership)– Agri-Science Park (ASP)– Agri-Business Incubator (ABI)

ABI’s achievements

• National award for the Best Incubator 2005

• Best Social entrepreneur of the Country to ABI Client Rusni by the Prime Minister of India

• FAPCI Award for Rural development to ABI client AAI

• Pioneered globally by successful incubation of sweet sorghum ethanol

• Commercialization Of ICGV91114 groundnut variety

Capacity Building on Business Incubation

FBI-TNAU, Coimbatore staffs

– 12th Sep 07

IIAM, Mozambique staffs, May 2007

Global Outreach

ABI at Agricultural Research and Extension Unit (AREU), Mauritius

FBI at Institute of International Agriculture (IIAM), Mozambique

ISBA, Conference

National Alliance

ABI is executive member of Indian STEP and Business Incubation Association (ISBA)

ABI had organized the 1st ISBA Annual Conference on 27th Feb 2007 at ICRISAT

2nd Global Forum for Business Incubation, Nov 6-10th 2006

International Alliance

ABI is a active member of Global Business Incubators Network

ABI had organized the 2nd Global Forum for Business Incubation along with World Bank, DST and FICCI in Hyderabad

Impacts generated by ABI

2003-2008 (5 years)

• Farmer beneficiaries: 30,000• Entrepreneurs supported: 15• Ventures incubated: 10• Technologies Exchanged: 7• Investment mobilized: $8 million• Employment generated: 324

Thank you