final nzl incubation 23 sepv2

New

Zealand

Incubation

Country

Case

Study

2014 MBA 434: Tuesday Session

UnaisiVuniwaqaS02000455

SeiniFotuS02006013

Hanisivai VisantiS11112274

Outline Learning Outcomes

Concept Overview

Snapshot – Case Study

SCORE Analysis

New Zealand vs Malaysia

New Zealand/Malaysia vs Fiji

Success Factors

Conclusion

Recommendation

Learning Outcomes

Understand Business Incubation.

Identify best practices – NZL.

Identify reasons to incubate.

Business Incubator?

Goal

Graduate:Successful firms Financially viable

Potential:create jobsrevitalize neighborhoodscommercialize new technologiesstrengthen economies

Incubationservices

IncubationProcess

3 – 5 years

IncubationOwners

• Private

• Private non-profit

• Local government

• State government

• Federal government

• University

Accelerates growthCreate jobsImproves entrepreneurial climateNetworking

Why incubate?

Why?

Snapshot

Purpose of study:

Analyse public policy in incubation

development

Identify critical success factors for

development of incubators

Background

Incubator policy introduced 2001

Based on Israeli model

High-tech and high growth oriented

Learning - USA, Australia and Europe

Why IncubatorsNew Zealand?

Growth oriented SMEs

Remoteness

Accelerate new companies –

VC Industry

SME - 85% market share

UltimateEnhance survival & growth

IntermediatePromote best practice

Networking - interested parties

Angel investors

Venture capitalist

Networking with CRI’s

Objectives

Programme Mechanism

Incubator awards annual merit-based financial awards - approved

incubators

The Incubator Development Unit (IDU) Residing within NZTE Servicing the incubator network Administer incubator awards

Support Mechanisms

NZTE;

export supportmarket development assistanceinternational networkstraining and knowledge programs funding assistance serviceinternational growth fund

Performance so far

•First Incubator in 2001

•19 Incubators received grant of 16.73m NZD

•A number have closed, merged or ineligible

•8 incubators in operation

•7 have secured approved status and in receipt of government

subsidies

•Total of 160 incubatees; an average of 20 per incubator

E-centre Ltd

Ice House

Creative HQ

CII – Canterbury Innovation Incubator

NewZealand Incubators

Central Government (NZTE)

Local Councils & Economic Development Agencies

Universities

Crown Research Institutes

Private Sector Organizations & Companies

New Zealand Stakeholders

Incubation Drivers

The two broad drivers are;

1. Boosting export revenues

1. Commercialisation of R&D High value employment

creation

Objectives Incubation Support Program

Enhance success and growth of early-stage

Promote best practice

Enhance networking:

among incubator managers and with organizations

between incubators and universities / CRIs

Encourage technology transfer and commercialisation

How to Access the Fund

Investors must be accredited

Evaluation process:desktop evaluationsite visit detailed due diligencecapabilities - potential investment partner

Angel investor networks titled ‘Escalator’ alsosupport companies to be investment ready

Setting up of viable enterprise

Appropriate feasibility study

Governance & management

Good networking

Clear focus & direction

Success Factors

SCORE Analysis

Strengths

Challenges

Options

Responses

Effectivenessefficient reliable

elegant appropriate

integrated

strength challenge

option response

effectiveness

Achievement of best practice

Good networking

Push towards financial independence

Clear focus and direction

Effective partnership between government &

incubation industry

Funding process

Strengths

Challenges

Financial sustainability

Source & retain - management

Measuring effectiveness

Data – graduated incubatees

“Red tape”

$ - registering

Commercialisation of innovations

Opportunities

Peer to peer networking

Knowledge sharing

Strategic partnerships & alliances: University – branding & credibility

Banks & business angels - funding

CSR Programs Funding

Expertise

Links to Markets

Commercialisation

Responses/regulations/returns/rewards

• Political will

• Laws and policies

• Key stakeholder support

• Satellite incubators - government

Effectiveness

Is it Integrated?Promotes PPP with Government providing an enabling environment

Is it Appropriate?

SME Development stimulates NZ Business Environment

Is it Reliable?

Linkages Universities for Learning and Growth and Re-engineering process

Is it Efficient?

Proper utilisation of funding and quality mechanism in place

New Zealand Malaysia

Objectives

Generate hi-tech growth-orientated

internationally exporting SMEs

Technology transfer and

Innovation

Strategy

Framework

Incubator Sup-port Program (ISP)

Zealand Trade and Enter-prise

Incubator Development Unit

National Incubator

Development Frame-work

Period of grant

funding

Annual basis

Self sustainability 2014

Open ended

Long term funding

% of funding 50% of running costs 100% running & start-up costs

Ownership/

Partnership

Structure

Universities

Commercial entities

Regional economic agencies

Universities

National Authorities

Voluntary Organisations

Monitoring &

Evaluation

Regular statistic report

Annual performance benchmark

Performance data – former tenants

Government – none

Incubator management -

informal

• Scale and types of business

• Support by government

• Stakeholder support

• Data collection

Fiji vs Malaysia & New Zealand

• Policies

• Learning and Growth

• Sustainability

• M&E

Fiji vs Malaysia & New Zealand

0

1

2

3

4

5

To contribute tocompetitiveness and local job

creaction

To help universities and R&Dcentres commercialise know-

how

To help companies generatespin-of activities

To help disadvantagedcommunities/individual with

projects

To contribute to technologytransfer and innovation and

wealth creation

Importance of Objectives

NZ

Malaysia

Fiji

Incubation processProper management:

performance assessments

report regular statistics

Clear governance rules

Entry & exit procedures & standards

Government fundingAnnual assessments & rating

Operations

Management

Financial performance

Best practice?

Monitoring & evaluationIncubationPost incubation

Best practice?

55%

18%

1%

12%

7%

7%Subsidies - NationalAuthorities and publicagenciesIncome from banks and otherprivate sector organizations

Income from universities andother R & D organizations

Rental income and otherincubator charges

Other earned income

Investment income

How incubators cover costs

Conclusion

Innovation - socio-economic development

Incubators strong engine:

economic development

job creation

Long term success - SME

BI vehicle ideas – socio-economic value

Develop graduate ideas

SME economic backbone

Incubation future business model

Recommendations

Feasibility assessment – potential incubatees

Innovation – local market

Competitive percentage – owners equity

Partnerships & strategic alliances

Private sector partnership

Attractive remuneration

Succession planning

Process measure success

Monitoring program - graduates

References• http://www.slideshare.net/hanisivai/savedfiles?s_title=business-incubation-

26891501&user_login=mustafachangi

• http://www.slideshare.net/hanisivai/savedfiles?s_title=business-incubation-rajeshagrawal&user_login=niabidocs

• http://www.slideshare.net/peshwaacharya/business-incubators-38574758?qid=4403512c-5559-4ced-af6d-16683e83f301&v=default&b=&from_search=24

• http://www.slideshare.net/markslong/introduction-to-business-incubation?related=1

• http://blog.earthgrid.com/accel/the-institutions-of-business-development/

• http://www.newzealand.com/int/artice/auckland-nightlife/

• http://ikartin.dot5hosting.com/3315.html

• http://www.cbicc.org/Economic_Development/Incubator_Program.aspx

• http://palamas.info/wp-content/uploads/2012/01/success.jpg

• http://sweetclipart.com/multisite/sweetclipart/files/us_dollar_sign_black.png

• http://www.bbicbahrain.com/images/pic-incubation.jpghttp://www.1000ventures.com/design_elements/selfmade/biz_incubators__fincurve.gif

• http://www.urenio.org/wp-content/uploads/2010/03/Smart-Guide-Innovation-Incubators.jpg

• http://www.yunussb.com/wp-content/uploads/2013/09/Colinsrt.jpg

• http://www.theepochtimes.com/n2/images/stories/large/2011/10/23/AllBlacks130005300.jpg

Acknowledgements

Our Lord God Almighty

Professor James McMaster, Professor Management Studies

Ravi Chand, National Centre for Small

and Micro Enterprises Development

Akanisi Waqanicakau, National Centre for Small

and Micro Enterprises Development

Our families

Kia ora | Thank you!