innovation and enterprenership

                                                     CHAPTER-I

INTRODUCTION

1.1 INTRODUCTION ABOUT THE TOPIC

Innovation and entrepreneurship in India is on the rise with highly qualified experienced professionals taking the initiative to set up innovative ventures. There has been a continuous growth of knowledge based industries in India for the last couple of decades which makes India an attractive destination for techno entrepreneurship and early stage start ups. In order to give desired impetus to the growth of new enterprise, systematic interventions have been introduce to create the enabling environment. These knowledge based and innovation driven enterprise also harnesses and engage our resources of science and technology infrastructure and man power, productively.

              The Worldwide growth of business incubators during last two decades to provide enabling environments to new ventures, has benefitted many countries. This has also helped in utilizing technology as a means for their economic development. Here Technology business incubation is a dynamic process of business enterprise development. Incubators nurture young firms, helping them to survive and grow during the startup period when they are most vulnerable. The goal of business incubators is to produce healthy firms that create jobs and wealth, strengthen the economy, commercialize new technologies and revitalize communities. The National Science and Technology Entrepreneurship Development Board (NSTEDB) of the department of science and technology business incubator (TBI).

               Over the years, the incubation program has been supplemented with number of enabling initiatives to make it more useful and effective. Daft has said that organizational effectiveness is the “degree to which the organization achieves a stated goal. So to know the effectiveness of the business incubators the level of satisfaction with the incubation services from the perspective of clients are also important and as well as the efficiency of incubation programs. The effectiveness of services provided by a business incubator is the basis and premise for promoting the incubator itself. Service effectiveness in the present era is to be able to serve the right customer at the right time and more effectively and efficiently than competitors. So the project is concentrated on the “Effectiveness of the services provided by the Technology Business Incubator”.

                                                       

INDUSTRY PROFILE

Business Incubation

Many entrepreneurs don't have the space or desire to start a business out of their home, yet find renting space and setting up essential support functions is overwhelming financially and energy draining just at a time when their financial resources and energy are most needed for development of the business itself. A business incubator can be the perfect solution for such a person. Business incubation provides workspace and an instructive, supportive environment to entrepreneurs at start-up and during the early stages of businesses.

History

The formal concept of business incubation began in the USA in 1959 when Joseph Mancuso opened the Batavia Industrial Center in a Batavia, New York, warehouse. Incubation expanded in the U.S. in the 1980s and spread to the UK and Europe through various related forms (e.g. innovation centres, pépinières d’entreprises, technopoles/science parks). The U.S.-based National Business Incubation Association estimates that there are about 5,000 incubators worldwide. As of October 2006, there were more than 1,400 incubators in North America, up from only 12 in 1980. Her Majesty's Treasury identified around 25 incubation environments in the UK in 1997; by 2005, UKBI identified around 270 incubation environments across the country. A study funded by the European Commission in 2002 identified around 900 incubation environments in Western Europe.

Throughout the 1980’s, business incubation industry growth was swift, as a farsighted individuals saw the limitations of common economic development strategies that focused solely on industry attraction and large corporate expansions. As others began to recognize the value of creating and expanding new businesses to sustain local economies, more communities developed business incubators to support these new ventures. In the mid 1980’s, the US Small Business Administration (SBA) strongly promoted incubator development, holding a series of regional conferences.  Incubation activity has not been limited to developed countries; incubation environments are now being implemented in developing countries and raising interest for financial support from organizations such as UNIDO and the World Bank.

On November 3, 2010,New York City broke ground on its sixth business incubator and the first in the Bronx called the Sunshine Bronx Business Incubator which is a joint venture between the New York City Economics Development Corporation and Sunshine Suites.

The first identifiable business incubator was launched in Batavia, New York in 1959. More followed on a limited scale until 1984 when the U.S. Small Business Administration (SBA) began strongly promoting incubator development. At that time there were 20 incubators in operation. Over the next few years that number rose rapidly. The National Business Incubation Association, a private membership organization of incubator developers and managers, was launched in 1985 by industry leaders. From an initial membership of 40, it has grown to almost 800 members today.

According to the National Business Association (NBIA) Survey of Business Incubators, by 1997 the number of business incubators had expanded to 550 in the United States alone. New incubators have been opening at the rate of about one a week since 1986. It is estimated that there are more than 8,000 startup firms housed in incubators and another 4,500 entrepreneurial ventures currently operating on their own were originally launched through incubators, including a number of the Inc. 500. Over 80 percent of firms that were started through an incubator are still in operation.

In 2005 alone, North American incubation programs assisted more than 27,000 companies that provided employment for more than 100,000 workers and generated annual revenues of $17 billion.

Evolution of business incubation concept

The business incubation concept has been influenced and shaped by three significant economic and technological developments since its inception, and its governance, value proposition and configuration have evolved. Events shaping the main types of business incubation models that have emerged in response to change in incubate needs are discussed below.

Urban renewal and community development

          In their early development, business incubators were primarily seen as an instrument of urban renewal and community development. First business incubators were conceived as a result of the difficulty some landlords faced finding tenants for their vacant buildings. These buildings were factories that had curtailed or ceased operation because of industrial restructuring and re-location of production facilities, schools experiencing declining enrolment or other types of buildings left vacant by emigrating companies. Faced with the difficulty of finding a single tenant for the entire building, their owner started partitioning them and renting them out as units to different tenants. Thus the use of the term ‘tenant’ to describe residents of a business incubator, which emphasize the rental relationship, is not entirely coincidental. It is a reflection of the focus of the early incubators’ activities, although it continues to be used even today when provision of rental space is one of their many activities.

            Given government concern with revitalizing decaying urban areas and creating employment opportunities in close proximity to where communities lived, combined with the fact that some of these buildings were public property, the early business incubator tended to be joint private- public partnerships or were subsidized by government. In the mid-1980’s, in the U.S. the Small Business Administration undertook a number of initiatives to strengthen the incubation movement, and newsletters on business incubation, and supporting the formation of national association.

Commercialization of outputs of basic scientific research

            In the 1970s, interest in commercializing university research and technologies began to reshape the industry. Beginning in 1973, the U.S. National Science Foundation supported programs with innovation centers through its Experimental Research and Development Program (Scheirer et al, 1985). The program grew and is credited with being the basis of university efforts to launch incubation centres (Allen and Weinberg, 1988). A related and significant development was the growing attention to the interests of the producers of intellectual property. Concurrently, there was a concern in the U.S. that the other countries were narrowing the invention and technology gap. Crearting, protecting and commercializing IP was seen as a major factor of competitive advantage for the U.S. manufacturing firms, which were being challenged by low cost manufacturing firms, which were being challenged by low cost producers in other countries. Beginning in the mid- 1980s, business incubation activity began to increase significantly, attributed mainly to:

• Reduced uncertainty about commercializing the outputs of federally funded basic research and the passage of the Bayh-Dole Act in the U.S. in 1980.
• Increasing recognition in the legal system of the importance of innovation and IP rights protection.
• Profit opportunities offered by the commercialization of biomedical research.

Rapid technological change and receptive equity markets

            The concept was influenced in the 1990s, by three concurrent technological and capital market events: penetration of information and communication technologies in all sectors of the economy, rapid technological obsolescence, and easy access to the equity markets and rise of angels. These developments offered new opportunities and ideas and created demand for new services. For example start-ups with novel ideas needed not only the services incubators traditionally provided but also assistance with getting new products to the market as quickly as possible and ahead of their competitors. While incubators adapted to these developments by offering additional services, growth of online commerce gave rise to virtual incubators and on-line businesses.

 Moreover, eager to take advantage of new technologies, which created opportunities for leveraging such assets as purchasing power and big customer base, large corporations introduced new models to suit their particular needs. Whereas business incubation models that were introduced to commercialize outputs of basic scientific research differed from the archetype with respect mainly to sponsors and services, developments in the 1990s created models that were different in more fundamental ways.

As incubation models responded to emerging phenomena, they adopted new business strategies and governance structures and their objectives and services changed accordingly. Their entry and exit rules also reflected the new business focus. For example, logistical services were important in the beginning when urban renewal and community development were the main concerns. While these services continued to be offered by the models that emerged in 1990s, other services became more important. For instance, the need to be the first in the market with a new product required access to risk capital (Grimaldi and Grandi,2005), networking (Hansen et al, 2000), and marketing expertise. By focusing on the provision of risk capital, the venture capital model satisfied a critical need, as Grimaldi and Grandi (2003) correctly point out, but in doing so it raised the bar for admission to an incubator. To qualify for risk capital, more stringent criteria had to be met than was necessary in the previous models e.g. applicants had to have a more developed technology. Other start-ups with less developed technologies but promising prospects still had to rely on archetypal incubators.

Incubators are small in terms of revenue, and therefore sources of funding have played an important role in their development, whether they were government subsidies, angels or corporations taking equity positions. Second, they capture quite well the principal characteristics of the numerous variants of business incubation models.

Business incubator

Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Incubators vary in the way they deliver their services, in their organizational structure, and in the types of clients they serve. Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term: Historically, 87% of incubator graduates stay in business.

Incubators differ from research and technology parks in their dedication to start-up and early-stage companies. Research and technology parks, on the other hand, tend to be large-scale projects that house everything from corporate, government or university labs to very small companies. Most research and technology parks do not offer business assistance services, which are the hallmark of a business incubation program. However, many research and technology parks house incubation programs.

Incubators also differ from the U.S. Small Business Administration's Small Business Development Centers (and similar business support programs) in that they serve only selected clients. SBDCs are required by law to offer general business assistance to any company that contacts them for help. In addition, SBDCs do not target start-up and early-stage companies; they work with any small business at any stage of development. Many business incubation programs partner with their local SBDC to create a "one-stop shop" for entrepreneurial support.

Most common incubator services:

• Help with business basics
• Networking activities
• Marketing assistance
• High-speed Internet access
• Help with accounting/financial management
• Access to bank loans, loan funds and guarantee programs
• Help with presentation skills
• Links to higher education resources
• Links to strategic partners
• Access to angel investors or venture capital
• Comprehensive business training programs
• Advisory boards and mentors
• Management team identification
• Help with business etiquette
• Technology commercialization assistance
• Help with regulatory compliance
• Intellectual property management

Unlike many business assistance programs, business incubators do not serve any and all companies. Entrepreneurs who wish to enter a business incubation program must apply for admission. Acceptance criteria vary from program to program, but in general only those with feasible business ideas and a workable business plan are admitted. It is this factor that makes it difficult to compare the success rates of incubated companies against general business survival statistics.

Although most incubators offer their clients office space and shared administrative services, the heart of a true business incubation program is the services it provides to start-up companies.

More than half of incubation programs surveyed by the National Business Incubation Association in 2006 reported that they also served affiliate or virtual clients. These companies do not reside in the incubator facility. Affiliate clients may be home-based businesses or early-stage companies that have their own premises but can benefit from incubator services. Virtual clients may be too remote from an incubation facility to participate on site, and so receive counseling and other assistance electronically.

The amount of time a company spends in an incubation program can vary widely depending on a number of factors, including the type of business and the entrepreneur's level of business expertise. Life science and other firms with long research and development cycles require more time in an incubation program than manufacturing or service companies that can immediately produce and bring a product or service to market. On average, incubator clients spend 33 months in a program. Many incubation programs set graduation requirements by development benchmarks, such as company revenues or staffing levels, rather than time in the program.

Incubator types, goals, and sponsors

• Technology
• Computer software
• Manufacturing
• Internet
• Biosciences/life sciences
• Electronics/microelectronics
• Telecommunications
• Computer hardware
• Medical devices
• Wireless technology
• Healthcare technology
• Advanced materials
• Defense/homeland security
• Energy
• Environment/clean technologies
• Media
• Nanotechnology
• Construction
• Arts
• Aerospace
• Kitchen/food
• Retail
• Fashion
• Wood/forestry
• Tourism

More than half of all business incubation programs are "mixed-use" projects; that is, they work with clients from a variety of industries. Technology incubators account for 39% of incubation programs.

Business incubation has been identified as a means of meeting a variety of economic and socioeconomic policy needs, which may include
• Creating jobs and wealth
• Fostering a community's entrepreneurial climate
• Technology commercialization
• Diversifying local economies
• Building or accelerating growth of local industry clusters
• Business creation and retention
• Encouraging women or minority entrepreneurship
• Identifying potential spin-in or spin-out business opportunities
• Community revitalization

About one-third of business incubation programs are sponsored by economic development organizations. Government entities (such as cities or counties) account for 21% of program sponsors. Another 20% are sponsored by academic institutions, including two- and four-year colleges, universities, and technical colleges.

In many countries, incubation programs are funded by regional or national governments as part of an overall economic development strategy. In the United States, however, most incubation programs are independent, community-based and resourced projects. The U.S. Economic Development Administration is a frequent source of funds for developing incubation programs, but once a program is open and operational it typically receives no federal funding; few states offer centralized incubator funding. Rents and/or client fees account for 59% of incubator revenues, followed by service contracts or grants (18%) and cash operating subsidies (15%).

Many for-profit or "private" incubation programs were launched in the late 1990s by investors and other for-profit seeking to hatch businesses quickly and bring in big payoffs. At the time, NBIA estimated that nearly 30% of all incubation programs were for-profit ventures. In the wake of the dot-com bust, however, many of those programs closed. In NBIA's 2002 State of the Business Incubation survey, only 16% of responding incubators were for-profit programs. By the 2006 SOI, just 6% of respondents were for-profit.

Although some incubation programs (regardless of nonprofit or for-profit status) take equity in client companies, most do not. Only 25% of incubation programs report that they take equity in some or all of their clients.

Business Incubators and Facilitators in India

 Business Incubator is a facility designed to assist businesses to become established and sustainable during their start up phase. Typically, they do this by providing- shared premises, business advice, business services, and access to investor, market and international networks, mentoring and a full-time, hands-on management team.

The main goal of most business incubation programs is to produce companies that create jobs and wealth in their communities. Business incubators nurture the development of entrepreneurial companies, helping them survive and grow during the start-up period, when they are most vulnerable.

Business incubators provide their resident companies with business support services and resources such as guidance, assistance with business planning and help obtaining financing. Incubators usually also offer companies rental space with flexible leases, shared basic office services and access to equipment all under one roof.

Technology Business Incubation

"Technology Incubation is a dynamic process of business development. Incubators nurture young firms, helping them to survive and grow during the critical start-up stage when they are most vulnerable…."

Globally, the concept of Technology Incubation has proven to reduce the failure rate of new startup companies. In doing so they create employment and assist local and regional economic development.

·         Almost 80% of companies will go out of business within their first 5 years

·         Approximately 85% of incubated companies will survive once they successfully graduate from incubators and set up operations independently…"

Technology incubation involves the facilitation of both structural facilities and management oriented services designed to assist new and growing businesses involved in developing cutting edge technologies to become established and profitable by providing premises, advice, services and support.

                                               COMPANTY PROFILE

Introduction to Techno park- TBI

Techno park-Technology Business Incubator (T-TBI) has been inspiring the young talents of Kerala to transform themselves into Job Creators rather than Jobseekers”. It motivates to transform their Innovations into commercial products and guide and nurture them to emerge as successful entrepreneurs. Technopark being the first and greenest IT Park in the country proved to have provided the most conducive working environment for a Technology Business Incubator to developing in-house entrepreneurs by supporting their innovations through incubation.

The success story of Techno park’s Incubation activities goes back to the early part of this decade when Techno Park gave birth to a new initiative called Techno park Business Incubation Centre (T-BIC) in 2002. With the constant support of the Government of Kerala this new initiative was started to incubate Business Enterprises.

Following this success story, Techno Park started the Techno Park - Technology Business Incubator (T-TBI) in 2006. Technopark Technology Business Incubator (T-TBI) is a joint initiative of Techno park, Trivandrum and the Department of Science and Technology (DST), Government of India that provides incubation support to budding entrepreneurs in the "knowledge driven" industry. T-TBI is a registered as a Society on 7th June 2006 under Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act Number XII of 1955. Technopark, Trivandrum has been a pioneer in utilizing the advancements in the field of Information Technology for bringing economic prosperity to the State of Kerala, located in the southern tip of India. Technopark-TBI is spearheading the Entrepreneur Development activities by identifying and nurturing the young talents in the Engineering Colleges and Technical Institutes in the locality.

            The Technology Business Incubator operating in Techno Park was adjudged the Best Technology Incubator of India for the year 2007 by the Department of Science and Technology, Government of India. Having been a front runner in providing Incubation support to potential entrepreneurs, Technopark could rightly be called the cradle of Incubation activities in the country. By selecting Technopark for this prestigious award, the Government of India has recognized the pioneering efforts of Technopark in bringing knowledge driven Industries to the State of Kerala, by spurring the entrepreneurial spirit among the talented Professionals.

Future of high technology industry largely depends on producing innovative products and services at competitive prices. Great ideas will remain on paper if an environment with the right conditions is not provided at the right time. Time to market is very short and the window of opportunity does not last long in today's global business environment. Quality entrepreneurs who choose to set shop in Technopark need to be given the best enabling conditions for converting their innovative ideas into smashing commercial successes.

The Center has full time management team that has extensive experience in entrepreneurship, product development, and marketing, securing venture capital funding and organizational development. In addition to this, an expert panel called the Technology Angels consisting of eminent academicians and expert professionals from diverse industries guide the incubatees.

T-TBI shall provide ready to move in, plug and play facilities in addition to the expert advisory and mentoring provided inside Technopark. The following modules are available at T-TBI

4 Seat Modules

8 Seat Modules

9 Seat Modules

16 Seat Modules

20 Seat Modules

Essential operational support services such as security, reception service, telephone operator service, photo-copying, etc shall be provided by Technopark as part of the package, with nominal charges being levied extra in some cases while the rest is being included in the package.

In addition, essential business support services including business consulting and advisory services applicable right from the stage of company formation shall be provided. Again, a service charge may be levied as appropriate for different services. Technopark's endeavor in any case shall be to minimize costs for the incubated company.

Technopark-TBI is the first Business Incubator which has been operating successfully in Technopark. Technopark is the largest and greenest technology park of the Country with world class IT infrastructure facilities in a resort like environment. T-TBIs primary goal has been identifying and promoting innovation, entrepreneurship and employment through business incubation activity. With the leadership of committed business experts and with the co-operation of dedicated employees, support of Department of Science & Technology (DST) and networking with Universities and premier academic institutions of the state T-TBI has made significant strides. The T-TBI is acting as a platform for the new and innovative entrepreneurs to develop their ideas into products and services and build businesses out of them. Technopark has launched several other complementary initiatives like Technopark Business Incubation Centre (TBIC), National Centre for Innovation, Incubation and Entrepreneurship (NCIIE), Technopark- TePP Outreach Centre (T-TUC) and Technopark Software Engineering Competency Centre (TSECC) to create an eco-system that nurtures and supports entrepreneurs.

Unlike other business incubators, Techno park-TBI is unique in itself because of its novelty in spreading techno-entrepreneurship among the students and innovators. Techno park TBI is the pioneer in introducing and organizing various programmes like Technopreneur workshops, Entrepreneurship Awareness Camps, Entrepreneurship Development Programmes, residential Faculty Development Programmes, Bar camps, Boot camps, One-to-one and panel discussions, Software Engineering workshops, online mentoring and networking, TechTop the all India student project competition with highest prize money, Engineering students “project exhibitions, Entrepreneurship Development Cells, TBI Extension Centres, Virtual Incubation and Pre-incubation facilities. Besides, Technopark TBI is financially supporting the budding Technopreneur through Seed Support System and molding them technically to become successful entrepreneurs. The inspiration given by Techno park-TBI to the society in creating an entrepreneurship culture among the student community as well as creating employment generators in the College campuses is highly significant. It is indeed a great pleasure to see that the services rendered by Techno Park TBI in promoting technopreneurship are triggering the industrial and economic regeneration in the State of Kerala.

T-TBI is providing a 10,000 sq. ft. fully furnished office modules of sizes ranging from 150sq. ft. to 300 sq. ft. with plug and play facilities to house the incubation companies. Another2000 sq. ft. of this space is set aside for Incubator office, Laboratory, Library etc. and is used as training rooms and faculty offices. As a part of the expansion plan, 5000 sq. ft space has been furnished in Tejaswini building with latest infrastructure and networking facilities. The new office modules have been designed with a built up size of 300 sq. ft to 400 sq. ft with centralized air conditioning and failsafe supporting facilities at a reasonable cost for successfully setting up their ICT office units in capital city of Kerala.

Technopark launched the Technopark Technology Business Incubator (T-TBI) in the year 2005 and has started its operation during 2006 as a Regional TBI with extensive networking among all the Engineering Colleges and Management Institutes in the state in Association with Higher Education Department & Directorate of Technical Education, Government of Kerala.

            T-TBI has been instrumental in spreading the spirit of Innovation, Incubation and Entrepreneurship among the smart young talents residing in the campuses of Kerala. Typically, T-TBI provide entrepreneurs with necessary infrastructure support, technology/ prototype development support, research assistance, help in getting funding, mentoring & business consulting assistance and do whatever is necessary to make the start-up a success. Techno Park TBI promotes Enterprise and Entrepreneurship Development through several value enhancement services like assistance and advices to Legal, Financial, Tax Planning, research and development activities, creating networks among eminent resource persons and introducing Venture Capitalists, IPR Issues, thus carrying out high end technology commercialization. So far the Incubation initiatives of Techno Park through T-BIC & T-TBI have assisted 62 start-up companies. Out of this, 34 companies have graduated and moved into larger space in the Campus and 23 are still continuing their operation in the incubator. Altogether, these companies have created 2000 job opportunities thus yielding a success rate of almost 95% that indeed a creditable achievement to the country.

T-TBI is a member of the Indian Science & Technology Entrepreneurs Park and Business Incubators Association (ISBA) and is actively supported by Department of science and Technology (DST), Department of Scientific and Industrial Research (DSIR)/ Technology Information Forecasting and Assessment Council (TIFAC), Government of India.

Objectives

TBI works to achieve the following objectives.

• Undertake Research & Development activities and build a workable model of technology based Entrepreneurship in Kerala.
• Address the technology based entrepreneurship development requirements in the traditional sectors of Kerala.
• Identify entrepreneurial talents.
• Identify market niche for technology products and services to be addressed by entrepreneurs.
• Build appropriate training programmes suitable for Kerala’s socio-economic culture.
• Train the entrepreneurs in technology and business management.
• Assist the entrepreneurs to build technology-based enterprises.
• Introduce entrepreneurial skills to the students of Technical Institutions.
• Promote an entrepreneurial culture in Kerala.

Vision

To become the best Technology Business Incubator in the Asia Pacific region by identifying and promoting the potential innovators and entrepreneurial talents all over the region and to bring excellence to the technology and knowledge-driven business startups in their early-stages itself, through technology and business incubation, thereby enhancing the culture and climate of technopreneurship in the nation.

Mission

To make T-TBI a Centre of Excellence for Entrepreneurship development anda leading R & D centre for the commercialization of Innovative Technologies.Provide infrastructure, management assistance, financial resources, and support networks that enable new and emerging companies to succeed and prosper creating value-added jobs for the region through the Commercialization of technology. Spot and support the launch, growth, stabilization and long-term success of the incubator companies. To create, regulate and sustain a globally competitive entrepreneur friendly environment. An appropriate tool for the economic development by promoting technology/ knowledge-based home grown companies, culture of Technopreneurship for creating Job Providers.

Quality policy

T-TBI is committed to promote and encourage Innovation, Incubation and Entrepreneurship by providing quality environment including quality infrastructure, mentoring and all support services essential for budding entrepreneurs there by fostering a globally competitive entrepreneur friendly environment through networking with the academia, government and industry by continual improvement of business activities

Thrust Areas

Information and Communication Technologies including

·         Computer Software

·         Computer Hardware

·         Computer Based Services

·         Information Technology

·         IT Enabled Services

·         Bio-Informatics

Services

The Technopark TBI is acclaimed to be one of the best in the country and is supported by the Department of Science & Technology (DST) and Department of Scientific & Industrial Research (DSIR) of the Government of India. With the active support from these Government of India agencies, funding is available to the young innovators for each stage of evolution of their idea, namely support for making prototypes of their products, product development and patenting and finally commercialization of the idea. Our aim is to nurture young talents, helping them to survive and grow during the critical start-up stage when they are most vulnerable…."

T-TBI would collect only a nominal fee for the services and the space and technical support provided. Early stage advice and consultancy offered by T-TBI will be a free service. As all the tenant incubatees are sharing these resources from a common pool, the incubatees will benefit from the lower cost of resources in the early stages the form of compensation and the payment mode would be tailored to specific needs and based on individual case. The various services are:

·         Counseling

·         Preparation of Business Plan

·         Infrastructure & facilities

·         Mentoring

·         Financing

Counseling

Counseling sessions are arranged every Wednesday for the identifying the attractiveness of technology idea. T-TBI has a dedicated team of management experts that has extensive experience in entrepreneurship, product development, and marketing, securing venture capital funding and organizational evelopment. In addition to this, an expert panel called the Technology Angels consisting of eminent academicians and expert professionals from diverse industries guide the incubates. In the form of a business centre. The T-TBI provides incubates an initial place of operation equipped with supportive environment in which services such as assistance in technology, hands- on management, mentoring, business plan development, exposure to Venture Capital and Institutional Capital and all other operational business/finance related needs involved in starting and growing a technology company.

Preparation of Business Plan

TBI will extend all assistance helping the entrepreneurs build their business plans using the panel of mentors and consultants.

Infrastructure & facilities

Furnished enclosed office cubicles (4 seaters), plug and play facilities, telephone/fax connections, air conditioning, Board/Conference Room facilities, library services etc. The modular spaces will be basically developed with appropriate infrastructure like electricity and power lines, telephone and networking arrangements. The activities permitted in the T-TBI will include product development, product innovation, software testing, simulation, prototyping, pilot experimentation, training and other technology related work

Following facilities are provided in T-TBI:

·         Furnished air-conditioned office modules from 4-Seat to 20-Seat capacity

·         Telephone and Internet cabling

·         Web Hosting Services

·         Electric Power with Back-up DG supply

·         Reception, Security & Maintenance services

·         Vehicle Parking facilities

·         Conference Facilities

·         Transport Services

·         Library Services

Mentoring

Technopark has a panel of mentors and consultants who assist the entrepreneurs admitted to TBI. We are able to tap on the vast resource of experts available in the companies operating in Technopark.

Following are the areas where T-TBI has mentors and consultants available to assist the entrepreneurs.

·         Mentors

·         Overseas Mentors

·         Angel Investors

·         Venture Capitalists

·         Finance Consultants

·         Accounting & Audit Services

·         Resource Centres

·         Academic Activities

·         Technical Consultants

·         Quality consultants

·         Management Consultants

·         Marketing Assistance

·         Legal Assistance

·         HR Consultants

·         Training consultants

·         Media Consultants

·         Surveyors/Loss assessors

·         Country Ambassadors

Financing

A nominal license fee is charged each month based on the module occupied. Additional costs include charges you incur for usage of special equipment, telephone, internet, postage, etc. Charges are collected using a monthly billing cycle. Incubatees will be provided with the opportunity to get financial assistance from the Department of Science & Technology (DST) & Department of Scientific & Industrial Research (DSIR), & other related services as and when needed. Technopark has a number of banks and financial institutions working with them and their member companies in the campus.

Introduction to banks / venture capitalists

Technopark already has a number of banks and financial institutions working with them and their member companies in the campus. We have full fledged Branches of State Bank of India, Central Bank of India, HDFC Bank and IndusInd Bank in the campus with ATMs and offsite ATMs of HSBC, UTI, ICICI and HDFC in the campus. Technopark is already in the process of entering into partnership with venture capitalists like KVCF, Indiaco etc. All these institutions will be empanelled by TBI to support the entrepreneurs. Technopark is helping the incubatees in finding Seed capital and working capital assistance from venture capitalists.

Technopark has signed MoU with Pune –based IndiaCo, on 15th October 2005, a private equity company that invests in hi-tech enterprises that can access global market. The venture management specialists launched their operations in the Campus on December 12, 2005 with a programme in the Park Centre. IndiaCo, through its expertise in venture management helps out companies for overseas marketing and offers several value added services including portfolio management.

Common security Looking for Incubation space Ready to use plug and play infrastructure enabling lower operational set-up time and cost A single window clearance at Techno park TBI ensures that the starting up a company in T-TBI is hassle free Fully Furnished Office Cabins Techno park TBI has a total built-up space of about 15,000 sq. ft, which is spread over 3 buildings including Park Centre, Nila Building and the Thejaswini building. Space Availability Currently Techno Park TBI has 54 companies operating in the Technology Incubation and Business Incubation.

Incubation Process

T-TBI is designed to provide a springboard to budding entrepreneurs who wish to launch themselves into the world of technology based business careers. Entrepreneurs’ bright ideas to develop a product or service using advanced technology solutions can find a fertile ground in the Technology Business Incubator (TBI) of Techno Park. T-TBI is designed to provide entrepreneurs all the support to make technology based business ventures successful. An entrepreneur makes fewer mistakes when he operates in T-TBI because of the variety of support services available there. The highly innovative and productive environment of Techno Park provides entrepreneurs the right ambiance to build up technology ventures at international standards.

Membership Criteria       

The selection of entrepreneurs for membership in TBI will be based on the recommendation of an expert committee specifically set up for the purpose. The criteria for acceptance are the following:

1. The business activity proposed is in the advanced technology area. The company must meet the definition of a "technology-based company" (An organization which pursues commercial applications of science/technology-based innovations; employs a high percentage of technicians, engineers or scientists; or requires extensive R&D to produce new products or services).

2. The venture proposed is a corporation, partnership or sole proprietorship.

3. Demonstrate a need for incubator services.

4. Demonstrate capability for business viability and growth.

5. The business plan submitted by the entrepreneur is sound.

6. In the absence of a proper business plan, the request for membership will be accepted provisionally if business proposal looks promising prima-facie to the expert committee.

7. The entrepreneur will submit a proper business plan to TBI, which will be reviewed by the expert committee before final acceptance.

8. The business proposed should have significant technology content / employment potential / revenue generation potential / export earning potential.

9. The entrepreneurs may or may not have a track record in undertaking entrepreneurial ventures.

10. A first time entrepreneur should have the requisite aptitude in promoting the venture. The expert committee will assess this through personal interview, review of past activities, background check, references etc.

 Selection Process

i)  Determination of eligibility by TBI based on preliminary application.

ii) TBI and the entrepreneur will sign a mutual nondisclosure agreement (NDA) iii)

iii) Submission of complete application package:  

            a) Copy of the entrepreneur’s business plan  

            b) Entrepreneur's tax returns for prior three years if applicable.  

            c) Details of company's corporate structure, bylaws, ownership, etc.

iv) TBI sets up an expert committee to evaluate the application.

v) The expert committee reviews the application based on but not limited to the following criteria:  

            a) Merit of the business proposal  

            b) Background and experience of the entrepreneur  

            c) Financial viability  

            d) Status of the business plan, market research and feasibility studies  

            e) Growth potential  

            f) Applicant’s commitment-both financial and personal time-to the venture  

            g) Business references  

            h) Make up of the management team  

            i) To what extent is the entrepreneur developing technology, or using technology for a unique business purpose? 

             j) How effectively does the entrepreneur demonstrate an understanding of the environment facing the venture in its target markets, and a reasonable strategy to achieve stability and growth?

             k) How clear is the entrepreneur's need for the types of services that the incubator offers? 

             l) Is the venture product or service-based? Product-based ventures, by their nature, have a greater potential for significant economic impact, but innovative service businesses will also be considered for the program.  

            m) Market knowledge and experience (market definition, markets serviced, competition, SWOT analysis etc.)

vi) The entrepreneur gives a presentation of the business plan to the expert committee and clarifies all the questions.

vii) Due diligence by the expert committee (including background and credit check of entrepreneur)

viii) Decision by expert committee.

Post Admission Process

Once the decision is made to admit the entrepreneur to the incubation programme of TBI, the following activities are undertaken:

1) License agreement is executed between TBI and the entrepreneur.

2) Jointly set short-term objectives for the venture’s performance.

3) Develop a written plan of work for the venture.

4) Set up the venture's financial management and budgeting systems.

5) Identify mentors, consultants, service providers or resource centres to assist the entrepreneur in achieving his goals.

Semi-annual Review

Two formal performance reviews of each company are required every year. The expert committee gauges the progress of the company against its objectives. The expert committee also evaluates the quality and impact of the business assistance provided by T-TBI. Any further assistance in the form of mentors, consultants, service providers or resource centres required by the entrepreneur is identified during this review.

Duration of Incubation Programme

The duration of license to operate in the incubator program shall be for a term of 11 months. An extension of one more term of 11months shall be considered on a case-by-case basis based on the recommendation of the expert committee. These entrepreneurs shall move out of incubator at the end of the license period whether they have graduated* or not. The entrepreneur has to submit a formal application to the expert committee highlighting all factors responsible for the delays in the plan. The application should show the strategies adopted by the venture in overcoming the problems faced by the company.

Graduation

The venture shall graduate from the incubation programme when any one of the following conditions is fulfilled. 

1. The revenue stream of the company is adequate for self-sustenance.
2. The entrepreneurs have been able to tie up investors to finance the expansion plans of the venture and the incubator support is no longer necessary.
3. The entrepreneurs have sold the venture to a larger company.
4. Expiry of the period specified in the license agreement. If any of the above events takes place the venture will be treated as graduated from incubation programme and the membership in the incubator will be discontinued.

T-TBI Allied Initiatives:

Techno park Business Incubation Centre (TBIC)

T-BIC started as an initiative of Technopark in 2002, supported by Government of Kerala, institutionalized for incubating Business Ventures, which are spinning out of the campus and companies from within and outside the country. TBIC is a proven model of Business Incubation that offers congenial environment for an enterprise to grow during their startup phase so as to generate successful global ventures. TBIC provides ready to move in, plug and play facilities for startup companies. Essential operational support services such as security, reception service, telephone operator service, photo copying etc. are offered by Techno Park as part of the package. In addition, necessary business support services including business consulting, mentoring and advisory services, right from the stage of company formation, are also provided. This enables the entrepreneur to build up the enterprise at the required international standards.

National Centre for Innovation, Incubation and Entrepreneurship (NCIIE)

NCIIE is a learning platform for innovators and entrepreneurs in developing appropriate entrepreneurship models suited to the socio-economic and cultural environment of the state. NCIIE, being a part of the Technopark-Technology Business Incubator, has been conducting courses and seminars on Entrepreneurship Development for innovators, engineering and management students. NCIIE is also organizing various residential and non-residential Faculty Development Programmes (FDPs) with the support from TEQUIP (Technical Education Quality Improvement Programme) of the State Government and DST.NCIIE is a joint association between Indian Institute of Information technology and management-Kerala (IIITM-K) and

Entrepreneurship Development institute of India (EDII) with the support of National Science and Technology Entrepreneurship Development Board (NSTEDB), Department of Science & Technology, Govt. of India. NCIIE assists potential entrepreneurs to take up entrepreneurship in the area of Information and Computer Technology (ICT).

Technopark Software Engineering Competency Centre (TSECC)

TSECC is a software testing facility set up by Techno Park jointly with Rational Software to provide high end software testing tool facility that is unaffordable for a business startup and Micro Small and Medium Enterprises (MSMEs) in their early stages. The uniqueness of this joint initiative is that easy access to Rational tools will be complemented by Rational certified professionals at TSECC who facilitate acquisition of new skills by the target audience. TSECC facilitates bridging the gap between theoretical learning and practical implementation of best practices of software development through Rationals software engineering tools. Rational India provides the entire library of rational tools, solution samples, product demos, white papers necessary collateral. TSECC holds rational Certified professionals who handhold and provide guidance to visitors coming to centre, and as such responsible for the operation of the centre ensuring customer satisfaction. TSECC target primarily at small and medium software development companies, the student and academic/research community, as well as new IT entrepreneurs in Kerala. The centre guides software development companies on how to build software engineering into the software development process. For a prospective entrepreneur, it serves as a first level information center on managing a successful venture in software development implementing cutting edge software engineering principles.

Techno land

        After the successful development of prototypes, the innovators and entrepreneurs are given the opportunity to exhibit their products in the exhibition space called TECHNOLAND. This is useful for innovators and entrepreneurs in the marketing of their products as well as attracting Potential investment. The large number of visitors and clients from different parts of the world coming to Technopark also visit the exhibition area. Students from Colleges and Schools come to Techno Park regularly and get inopportunity to see the work of innovators in the exhibition area.

Technopark TePP Outreach Centre (T-TUC)

         Technopark is one of the Outreach Centres of DSIR (T-TUC) for selection and evaluation of genuine Innovators and Entrepreneurs in the Country. DSIR has recognized Technopark as their Outreach Centre during 2007 in a short span of time more than a dozen Innovators were sanctioned sizable TePP funding through T-TUC. Our Incubatees in T-TBI like Torque, Light logics, also got sizable TePP funding .This seed funding helps these incubates to kick start their product development and commercialization activities. Techno park-TUC has-been providing relentless guidance and support to the innovators in preparing their project proposal and in building up a realistic business plan for their venture. T-TUC selects and evaluates genuine innovators and entrepreneurs and helps them in getting the financial assistance from DSIR, GoIfor converting their innovative ideas into quality products and commercializing it.

Entrepreneurship Development Cells (EDC)

          Techno Park TBI is acting as a Regional TBI and is avidly helping the Engineering colleges and B Schools in the state in setting up Entrepreneurship Development Cells in their campus. The regional TBI is acting as a catalyst to spread the message of Innovation, Incubation and Entrepreneurship though out the region and thus setting up an entrepreneurial eco system in Kerala. Techno Park TBI is networked with all the Engineering Colleges, Science & Technical Institutions and B-Schools in the state and helping them to form Entrepreneurship Development Cells (EDCs) in the colleges and helps them in transforming the EDCs into Technology Business Incubator later. The EDCs formed in the accredited Institutions will get funding support from DST which is channeled through Techno Park TBI.

T-TBI Extension Centres

Extension Centres of T-TBI are set up in the Engineering Colleges and B Schools across the state of Kerala. This is done with the active support of the management, faculty and students of the Engineering Colleges & Management Schools. The startup company becomes the „Virtual Incubate of Techno park-TBI and the EDC of the College will host the Extension Centre of T-TBI. The infrastructure and R&D facilities for this are offered by the college Entrepreneurship Development Cell (EDC) and other support facilities shall be extended by the Techno park-TBI.

Virtual Incubation

        Another very innovative concept of incubation initiative practiced by Techno park TBI is the „Virtual Incubation‟ in which the startup company, whether it be a student venture or a startup entrepreneur who hires a space for the operation of his company outside T-TBI Extension Centres or T-TBI premises .Techno park TBI evaluates the business plan of the company for business &technology feasibility and selects the startup company as a Virtual Incubatee and provides total support and expert advise and networking opportunities needed to create enterprises.

Pre-Incubation

        Techno Park TBI provides Pre-incubation facilities to premature entrepreneurs as well as students who wish to launch their Technology ventures through Techno park-TBI. Necessary training for the preparation of business plans, and designing of the innovative ideas are provided to them in the pre-incubation stage. The period of preincubationis maximum six months, after which, they shall be evaluated by the expert committee for getting admitted into the incubation space.

Smart Business Centre (SBC)

     Smart Business Centre is provided to facilitate Indian and foreign IT/ITES and knowledge based Companies to commence operations immediately from a plug and play facility at Technopark.

• Fully furnished air-conditioned ready to move-in facility in multiples of 500 sq. ft.
• Monthly rental of Rs. 30,000/- per module for a period of 11 months.
• Refundable Security deposit of  Rs. 1, 80,000/-.

Smart Business Centre will typically have a manager's cabin and 8 - 9 workstations. The tenants will have to pay for their telecom/data communication charges. Backup power is provided. For critical applications, tenants may use UPS system.

The centre has the following facilities.

• Finished office space with air-conditioning.
• Furniture
• Continuous power supply with 100% backup
• Maintenance services
• Network Connections
• Common Reception and lobby area with a Receptionist
• Common Pantry area
• Common Conference / Discussion Room
• Common security
• Parking
• Extension Telephone

Access to other common facilities of Technopark like TechnoparkClub, Convention Centre Facilities, Resource Centre, Food Courts, Technomall, etc.

SEZ Benefit:

Special Economic Zone Benefits:

1. A Special Economic Zone (SEZ) is a "specifically delineated, duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs" (EXIM Policy 2000, Chapter 9, Para 30).

2. All trade inflows into the SEZ are treated as imports and all outflows from the SEZ are treated as exports.

3. The concept of SEZ was introduced by the Indian Government in the EXIM Policy 2000. Since then the SEZ Act has been passed in 2005 and the rules and regulations governing the same have been notified in 2006.

4. The preferential policy framework within which an SEZ functions is designed to give an impetus to exports and provide the necessary supporting environment to make these export hubs an attractive investment destination point for global players with multi-lateral trade dimensions.

5. Income tax holiday for 15 years.

§  100% for the first 5 years

§  50% for the next 5 years

§  50% for the following 5 years on plough back of profits

6. Exemptions from customs and excise duties, central sales tax and local taxes on construction material, capital equipment, raw material, spares, and consumables.

7. Exemption from service tax.

8. Exemption on stamp duty and land registration charges.

9. Single window clearances.

10. On-site customs and self-certification processes.

11. Repatriation of profits without dividend balancing permitted

12. 100% foreign direct investment permitted

Organizational Chart

Chief Executive                                 Officer

 

Techno Park

GM (Technical)

CFO

Gen.Mgr (P&A)

Sr.Mgr (BD)

1. LA 2. Project Development 3. OM 4. System Admin

1. Quality System 2. Finance 3. TBI/TBIC 4. Socities

Legal &  Marketing

1. Front Office 2. Campus Admin 3. Purchase\Insurance

 

Techno Park – Technology Business Incubator (T-TBI)

Chief Executive Officer

GM (Technical)

Chief Finance Officer Secretary & Registrar T-TBI

Sr.Mgr (BD)

Gen.MGR (P&A)

TBI/TBIC

Societies

Finance

Quality System

Expert Consultant & Adviser 1

Nila Society

Techno Park Club

Jr. Quality Officer

Administrative Officer

Technical Officer 3

Jr.Technical Officer

Technical Officer 2

Technical Officer 1

Expert Consultant & Adviser 3

Expert Consultant & Adviser 2

Fin.Exe

Manager

Fin.Exe 1

Fin.Exe 2

Administrator

Financial/Tax Consultant

Exe.Finance 2

Exe.Finance 1

Sr.Exe.Finance

Exe.Finance 3

Exe.Finance 2

Exe.Finance 1

AFO

DFO

 

                                          CHAPTER-II

REVIEW OF LITERATURE

Concept of market and marketing

            The concept of exchange and relationships leads to the concept of a market.A market is the set of actual and potential buyers of a product.These buyers share a particular need or want that can be satisfied through exchange and relationships. The size of market depends upon the number of people who exhibit the need, have resources to exchange and are willing to offer these resources in exchange for what they want.

Marketing concept

The marketing concept holds that achieving organizational goals depends on determining the need and wants of target markets and delivering the needs.

As a basic function of business firm it normally includes the following:

• Identification and assessment for markets and sales forecasting.
• Formulating of marketing policy to cater to the market chosen.
• The planning and operation of the marketing organisation to achieve the desired levels of sales and to deal with customers.
• Organization and conduct of sales promotion through salesmanship, advertising and other methods.
• The costing and budgeting of the result of marketing.
• Measurement and review of the result of marketing effort to check whether the firm is providing the desired level of customer satisfaction.
• Marketing more than any other business function, deals with customer. Creating customer value and satisfaction are the heart of modern marketing. 

The societal marketing concept

The societal marketing concept holds that the organization should determine the needs, wants and interests of target market. It should then deliver superior value to customers in a way maintain or improves the customers and the society is well being

Service marketing

One of the outcomes of the growing importance of services in the global economy has been the realization among marketers that managing a service requires  fundamentally different way of operating the business when compared to producing and selling goods. Services marketing is marketing based on relationships and values. It may be used to market a service or a product. Marketing a service- base business is different from marketing a goods-base business.

A service is different from a product because it doesn't have physical characteristics like the product. In the service sector all the operators have more or less the same service but the only thing that is going to make the difference of one service organization from the other is the customer attention and human touch provided by the organization. Services are economic activities that create value and provide benefits for customers’ specific time and places, as a result of bringing about a desired change in - or on behalf of – the recipient of the services.

Characteristics of a service

1.  Lack of ownership: You cannot own and store a service like you can a product. Services are used or hired for a period of time. For example when buying a ticket to the USA the service last may be 9hours each way, but consumers want and expect excellent service for that time. Because you can measure the duration of the service consumers become more demanding of it.

2. Intangibility: You cannot hold or touch a service unlike a product. In saying that although services are intangible the experience consumers obtain from the service has a impact on how they will perceive it. What do customer perceive from customer service? The location and the inner presentation of where they are purchasing the service?

3. Inseparability: Services cannot be separated from the service providers .a product when produced can be taken away from the producer. However a service is produced at or near the point of purchase. Take visiting a restaurant, you order your meal, the waiting and delivery of the meal, the service provided by the waiter/ress is all apart of the service production process and is inseparable, the staff in a restaurant are as apart of the process as well as the quality of food provided.

4. Perishibility: Services last a specific time and cannot be stored like a product for later use. If travelling by train, coach or air the services will only last the duration of the journey. The service is developed and used almost simultaneously. Again because of this time constraint consumers demand more.  

5. Heterogeneity: It is very difficult to make each service experience identical. If travelling by plane the service quality may differ from the first time you travelled by that airline to the second, because the airhostess is more or less experienced. A concert performed by a group on two nights may differ in slight ways because it is very difficult to standardize every dance move. Generally systems and procedures are put into place to make sure the service provided is consistent all the time, training in service organizations is essential for this, however in saying this there will always be subtle differences. 

The major difference in the education of services marketing versus regular marketing is that instead of the traditional “ 4 p’s,” product, price, place, promotion there are three additional “p’s,” consisting of people, physical evidence, and process.

Customer satisfaction

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business.

 In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

            Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace.

            Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviours such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other services against which the customer can compare the organization's services.

            The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured.

Concept of customer satisfaction and factors affecting customer satisfaction

Customer satisfaction depends on a products/services perceived performance in delivering value relative to buyers expectations. If the products/services performance matches expectations of the buyer, he is satisfied. If the performance exceeds expectations, the buyer is delighted. Outstanding companies go out of their customers satisfied. Satisfied customers make repeat purchases and they tell others about their experiences with the products/ services. The key is to customer expectations with company performance.

Smart companies aim to attract customers by promising only what they can deliver. Customer satisfaction is closely linked to quality. In recent years, many companies have adopted Total Quality Management(TQM) programmer designed to constantly improve the quality of their products, services and marketing processes, quality has a direct impact on product performance and hence on Customer satisfaction.

            In the narrowest sense, quality can be defined as “freedom from defects” but most customer-centered companies go beyond this narrow definition of quality in terms of Customer satisfaction. Quality begins with customer needs and ends with customer satisfaction. The extent to which products perceived performance matches buyers expectations he is satisfied. If the products performance falls short of expectations, the buyer is dissatisfied.

                                                           CHAPTER-III

RESEARCH METHODOLOGY

Introduction    

            The term 'research' refers to a critical, careful and exhaustive investigation or inquiry of experimentation or examination having as its aim the revision of accepted conclusion, in the light of newly discovered facts, Research is essentially a systematic enquiry seeking facts through objective verifiable methods in order to discover the relationship among them.

STATEMENT OF THE PROBLEM

The effectiveness of the services is an important factor for maintaining the customers.  As the incubators are service providers, it doesn’t have a physical characteristics like product so it can be only assessed by customer satisfaction. The measurement of customer satisfaction is a rapidly growing area of marketing research. So to know the effectiveness the level of satisfaction with the services from the perspective of clients are also important and as well as the efficiency of the organization to provide their services. Here in this report the study is based on the effectiveness of the services provided by the organization to their customers and also about the customer satisfaction.

OBJECTIVES OF THE STUDY

·         To study the effectiveness of the services provided by the Technology Business Incubator

·         To study about the satisfaction level of the customers’ of Technology Business Incubator

·         To know the Technopark’s benefit from Technology Business Incubator

·         To make suggestions to improve the services of Technology Business Incubator

SCOPE OF THE STUDY

                          The study is conducted to know the effectiveness of the services provided by the Technology Business Incubator. It enables to get through the support services offered by T-TBI to the entrepreneurs. It helps to understand the managerial excellence in motivating entrepreneurship. It also helps to know about the customer satisfaction about the services. The study undertaken at T-TBI seeks to answer all the above mentioned objectives.

AREA OF STUDY

            The area of the study is limited to incubation companies of TECHNOPARK, KERALA.

RESEARCH DESIGN

Research may be defined as the objective and systematic method of finding solution to a problem. It gives a structured picture for the management process like decision making and planning. In accordance with data collection, methodology gives a true path to find solution to a certain problem. Research methodology is a plan for collecting and utilizing data so that desired information can be obtained with sufficient precision. It includes the plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering method(s), the instruments to be used/created, how the instruments will be administered, and how the information will be organized and analyzed.

TYPES OF RESEARCH DESIGN

Here descriptive research is used to conduct the study. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic. Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Descriptive research design is a scientific method which involves observing and describing the behavior of a subject without influencing it in any way.

LIMITATIONS

• The time allotted for the study was not enough to have an in-depth analysis
• Most of the customers refuse to give details as they believe it will affect them.
• The workers are very busy on their work, so it was difficult to collect data.

·         The sample size may not be able to represent the entire customers.

DATA COLLECTION FROM SECONDARY SOURCES

                Company’s internal records, publications, journals, website are the main secondary sources used. Reports showing the latest developments and changes in the overall organization were also used for the study

DATA COLLECTION FROM PRIMARY SOURCES

               Primary source used here is questionnaire. Questionnaire supplied to the customers helped to know their experience of the services with respect to all the factors that constitute the effectiveness of the services.

SAMPLING TECHNIQUES

              Sampling is the process of selecting a sufficient number of elements from the population, so that a study of the sample and an understanding of its properties or characteristics would make it possible for us to generalize such properties or characteristics to the population elements.

Population

             The population consists of customers’ of the T-TBI

 Method of sample

The method of sampling adopted was convenience sampling.

Sample size

The sample size was 100.

DATA COLLECTION METHOD

            Questionnaire method was used to collect the data. The respondents were Incubation companies in TECHNOPARK, KERALA.

TOOLS FOR ANALYSIS

            The collected data is analyzed by using tool as follows:

§  Percentage Analysis

§  Weighted average method

§  Chi-square test

CHAPTER-IV

ANALYSIS & INTERPRETATION

Table: 4.1

Following table shows the age group in which the respondents belong to.

Age	Frequency	Percentage
20-25	38	38
26-30	34	34
31-35	16	16
36-40	10	10
Above 40	2	2
Total	100	100

Source – Primary data

Interpretation:

 From the total number of respondents, 38% belong to the age group of 20-25, 34% belong to the age group of 26-30, 16% belong to the age group of 31-35 and10% belong to the age group of 36-40, 2% of the respondents belong to the age group above 40.

Chart: 4.1

Following chart shows the age group in which the respondents belong to:

Table: 4.2

Distribution table showing the gender of respondents:

Choice	Frequency	Percentage
Male	72	72
Female	28	28
Total	100	100

Source – Primary data

Interpretation:

            The above table shows that 72% of the respondents were male and 28% of the respondents were female.

Chart: 4.2

Distribution chart showing the gender of respondents:

                                             

                                           

                                                    Table: 4.3

Following table shows the Educational Qualification of Respondents:

Choice	Frequency	Percentage
Up to HSE	0	0
Degree	57	57
P.G	36	36
Others (Specify)	7	7
Total	100	100

                    

Source – Primary data

Interpretation:

            No one of the respondents had been qualified up to HSE, 57% of the respondents had been qualified with degree, and 36% of the respondents are qualified with P.G, 7% of respondents are with other qualifications.

                                                  Chart: 4.3

Following chart shows the Educational Qualification of Respondents:

Table: 4.4

Following table shows the working experience of respondents:

Choice	Frequency	Percentage
Below 1year	41	41
1-2years	28	28
2-3 years	22	22
Above3 years	9	9
Total	100	100

Source – Primary data

Interpretation:

            From the table, 41% of the respondents have experience below 1year, 28% of the respondents belongs to 1-2years, and 22% of the respondents belongs to 2-3 years, 9% of respondents belongs to experience above 3 years.

Chart: 4.4

Following chart shows the working experience of respondents:

                                                   Table: 4.5                

  Following table shows various types of services incubatees received from T-TBI

Choice	Frequency	Percentage
Consulting services & Infrastructural Facility[CS&IF]	28	28
Entrepreneurial Training, Infrastructural Facility& Business support services [ET&IF&BSS]	51	51
Other services	21	21
Total	100	100

Source – Primary data

Interpretation:

The above table shows that 28% of the respondents respond that the incubatees receives consulting services and infrastructural facility, 51% respond that they receive entrepreneurial training, infrastructural facility and business support services, and 21% respond that they receive other services.

                                          Chart: 4.5

Following chart shows various types of services incubatees received from T-TBI

                                                 

Table: 4.6

Following table shows how the incubatees rate the importance and the effectiveness of individual type of assistance services provided by the T-TBI programmes.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Excellent	24	24	4	96
Good	64	64	3	192
Average	12	12	2	24
Poor	0	0	1	0
Total	100	100		312

Mean value=312/100=3.12

Source – Primary data

Interpretation:

            By applying weighted average scale, the mean value is 3.12 which shows that the incubatees rate the importance and the effectiveness of individual type of assistance services provided by the T-TBI programmes as good.

                                               

                                                        Chart: 4.6

Following chart shows how the incubatees rate the importance and the effectiveness of individual type of assistance services provided by the T-TBI programmes.

                                                                          

                                                     

Table: 4.7

Following table shows how incubatees rate the Research and Development facilities provided by T-TBI for Innovators.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Excellent	8	8	4	32
Good	72	72	3	216
Average	20	20	2	40
Poor	0	0	1	0
Total	100	100		288

Mean value=288/100=2.88

Source – Primary data

Interpretation:

                   By applying weighted average scale, the mean value is 2.88 which shows that the incubatees rate the research and development facilities provided by the T-TBI for innovators as average.

Chart: 4.7

Following chart shows how incubatees rate the Research and Development facilities provided by T-TBI for Innovators.

Table: 4.8

Following table shows how incubatees rate about the building facilities provided by the T-TBI.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Excellent	34	34	4	136
Good	52	52	3	156
Average	14	14	2	28
Poor	0	0	1	0
Total	100	100		320

Mean value=320/100=3.20

Source – Primary data

Interpretation:

                   By applying weighted average scale, the mean value is 3.20 which shows that the incubatees rate the builing facilities provided by the T-TBI as good.

Chart: 4.8

Following chart shows how incubatees rate about the building facilities provided by the T-TBI.

Table: 4.9

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Excellent	4	4	4	16
Good	60	60	3	180
Average	32	32	2	64
Poor	4	4	1	4
Total	100	100		264

 Following table shows how incubatees rate the milestone-based operational guidance and technical assistance provided by T-TBI.

Mean value=264/100=2.64

Source – Primary data

Interpretation:

                   By applying weighted average scale, the mean value is 2.64 which shows that the incubatees rate the milestone-based operational guidance and technical assistance provided by T-TBI as average.

Chart: 4.9

Following chart shows how incubatees rate the milestone-based operational guidance and technical assistance provided by T-TBI.

                                                      

Table: 4.10

Following table shows the evaluation of the training/learning programmes provided by T-TBI to the Innovators.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Highly Satisfied	2	2	5	10
Satisfied	44	44	4	176
Moderately Satisfied	32	32	3	96
Dissatisfied	22	22	2	44
Highly Dissatisfied	0	0	1	0
Total	100	100		326

Mean value=326/100=3.26

Source – Primary data

Interpretation:

                   By applying Weighted Average Scale, the mean value is 3.26 which shows that the incubatees evaluated the training/learning programmes provided by T-TBI to the Innovators as satisfied.

Chart: 4.10

Following chart shows the evaluation of the training/learning programmes provided by T-TBI to the Innovators.

Table: 4.11

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Highly Satisfied	4	4	5	20
Satisfied	36	36	4	144
Moderately Satisfied	56	56	3	168
Dissatisfied	4	4	2	8
Highly Dissatisfied	0	0	1	0
Total	100	100		340

Following table shows how the incubatees rate the counseling programmes provided by T-TBI to the Innovators.

Mean value=340/100=3.40

Source – Primary data

Interpretation:

  By applying Weighted Average Scale, the mean value is 3.40 which shows that the incubatees rate the counselling programmes provided by T-TBI to the Innovators as satisfied.

Chart: 4.11

Following chart shows how the incubatees rate the counseling programmes provided by T-TBI to the Innovators.

Table: 4.12

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Highly Satisfied	4	4	5	20
Satisfied	28	28	4	112
Moderately Satisfied	60	60	3	180
Dissatisfied	8	8	2	16
Highly Dissatisfied	0	0	1	0
Total	100	100		328

Following table shows how the incubatees rate about the market research and product marketing assistance provided by T-TBI.

Mean value=340/100=3.40

Source – Primary data

Interpretation:

  By applying Weighted Average Scale, the mean value is 3.40 which shows that the incubatees rate the counselling programmes provided by T-TBI to the Innovators as satisfied.

Chart: 4.12

Following chart shows how the incubatees rate about the market research and product marketing assistance provided by T-TBI.

Table: 4.13

Following table shows how the incubatees rate the seed fund provided by T-TBI to support their business.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Highly Satisfied	4	4	5	20
Satisfied	56	56	4	224
Moderately Satisfied	36	36	3	108
Dissatisfied	4	4	2	8
Highly Dissatisfied	0	0	1	0
Total	100	100		360

Mean value=360/100=3.60

Source – Primary data

Interpretation:

  By applying Weighted Average Scale, the mean value is 3.40 which shows that the incubatees rate the seed fund provided by T-TBI to support their business as satisfied.

Chart: 4.13

Following chart shows how the incubatees rate the seed fund provided by T-TBI to support their business.

Table: 4.14

Following table shows whether incubatees are interested in Angel Investment or venture capital?

Choice	Frequency	Percentage
Angel Investment	26	26
Venture Capital	74	74
Total	100	100

Source – Primary data

Interpretation:

            The above table shows that 26% of the incubatees are interested in Angel investment and 74% are interested in Venture caital.

Chart: 4.14

Following table shows whether incubatees are interested in Angel Investment or venture capital?

Table: 4.15

Following table shows how much time does the incubatees expect to spend in the incubation.

Choice	No: of Respondents	Percentage
0-5 months	6	6
5-12 months	10	10
1 year	52	52
2 year	20	20
3 year	12	12
Total	100	100

Source – Primary data

Interpretation:

            The above table shows that 6% of the incubatees expect 0-5months to spend in the incubation, 10% expect 5-12months of incubation, 52% expect 1year of incubation, 20% expect 2year of incubation & 12% expect 3year of incubation.

Chart: 4.15

Following chart shows how much time does the incubatees expect to spend in the incubation.

Table: 4.16

Following table shows the opinion of the incubatees about the support services provided by the incubator at the right time.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Highly Satisfied	41	41	5	205
Satisfied	34	34	4	136
Moderately Satisfied	21	21	3	63
Dissatisfied	4	4	2	8
Highly Dissatisfied	0	0	1	0
Total	100	100		412

Mean value=412/100=4.12

Source – Primary data

Interpretation:

  By applying Weighted Average Scale, the mean value is 4.12 which shows that the incubatees are highly satisfied with the support services provided by the incubator at the right time.

                        Chart: 4.16

Following chart shows the opinion of the incubatees about the support services provided by the incubator at the right time.

Table: 4.17

Following table shows the opinion of the incubatees about the T-TBI assistance in preparation of business plans.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Highly Satisfied	16	16	5	80
Satisfied	47	47	4	188
Moderately Satisfied	33	33	3	99
Dissatisfied	4	4	2	8
Highly Dissatisfied	0	0	1	0
Total	100	100		375

            Mean value=375/100=3.75

Source – Primary data

Interpretation:

  By applying Weighted Average Scale, the mean value is 3.75 which shows that the incubatees are satisfied with the T-TBI assistance in preparation of business plans.

                       

Chart: 4.17

Following chart shows the opinion of the incubatees about the T-TBI assistance in preparation of business plans.

Table: 4.18

Following table shows that satisfaction level of incubatees about the entry system of T-TBI.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Highly Satisfied	8	8	5	40
Satisfied	29	29	4	116
Moderately Satisfied	58	58	3	174
Dissatisfied	5	5	2	10
Highly Dissatisfied	0	0	1	0
Total	100	100		340

            Mean value=340/100=3.40

Source – Primary data

Interpretation:

  By applying Weighted Average Scale, the mean value is 3.40 which shows that the incubatees are satisfied with the entry system of T-TBI.

                        Chart: 4.18

Following table shows that satisfaction level of incubatees about the entry system of T-TBI.

Table: 4.19

Following table shows that whether the incubatees have any opportunity to network with similar business.

Choice	No: of Respondents	Percentage	Weighted Average Scale	Value
Strongly agree	19	19	5	95
Agree	74	74	4	296
Disagree	4	4	3	12
Strongly disagree	0	0	2	0
No comment	3	3	1	3
Total	100	100		406

Mean value=406/100=4.06

Source – Primary data

Interpretation:

            By applying Weighted Average Scale, the mean value is 4.06 which shows that the incubatees strongly agree that they have opportunity to network with similar business.

Chart: 4.19

Following table shows that whether the incubatees have any opportunity to network with similar business.

Table: 4.20

Following table shows that whether the incubatees are aware of the funding scheme from the government which is facilitated by T-TBI.

Choice	Frequency	Percentage
Yes	54	54
No	46	46
Total	100	100

Source – Primary data

Interpretation:

            The above table shows that 54% of the incubatees were aware of the funding scheme from the government which are facilitated by T-TBI & 46% of them were not.

Chart: 4.20

Following chart shows that whether the incubatees are aware of the funding scheme from the government which is facilitated by T-TBI.

Table: 4.21

Following table shows that whether the incubatees are aware about TePP funding provided by Department of Science and Industrial Research through T-TBI.

Choice	Frequency	Percentage
Yes	44	44
No	56	56
Total	100	100

         Source – Primary data

Interpretation:

            The above table shows that 44% of the incubatees were aware about TePP funding provided by Department of Science and Industrial Research through T-TBI & 56% of them were not.

Chart: 4.21

Following chart shows that whether the incubatees are aware about TePP funding provided by Department of Science and Industrial Research through T-TBI.

                                                    

                                                        

Table: 4.22

Following table shows that whether the incubatees are aware of Technology Idea Generator (TIG).

Choice	Frequency	Percentage
Yes	34	34
No	66	66
Total	100	100

Source – Primary data

Interpretation:

            The above table shows that 34% of the incubatees were aware of Technology Idea Generator (TIG) & 66% were not.

Chart: 4.22

Following chart shows that whether the incubatees are aware of Technology Idea Generator (TIG).

Table No:4.23

 Showing the association between satisfaction level of incubatees with the support services and time spend in incubation

Time spend in incubation	Satisfaction level of incubatees with the support services			Total
	Satisfied	Moderate	Dissatisfied
Below 1year	7	6	3	16
Above 1year	68	15	1	84
Total	75	21	4	100

H_o- Satisfaction level of incubatees with the support services has no significant influence over the time spend in incubation.

Table No:4.23

 Showing the application of chi-square test between satisfaction level of incubatees with the support services and time spend in incubation

O	E	(O-E)2	(O-E)2/E
7	(16*75)/100=12	25	2.083
6	(16*21)/100=3.36	6.9696	2.074
3	(16*4)/100=0.64	5.5696	8.7025
68	(84*75)/100=63	25	0.3968
15	(84*21)/100=17.64	6.9696	0.3951
1	(84*4)/100=3.36	5.5696	1.6576
Total			15.309

Calculated Value=15.309

Table Value at 0.05 significant level=5.991

Degrees of Freedom=2

Table value is less than the calculated value. So, hypothesis is rejected. Therefore, satisfaction level of incubatees with the support services has a significant influence over the time spend in incubation.

Table No:4.24

 Showing the association between satisfaction level of incubatees with the T-TBI assistance in preparation of business plans and time spend in incubation

Time spend in incubation	Satisfaction level of incubatees with the T-TBI assistance in preparation of business plans			Total
	Satisfied	Moderate	Dissatisfied
Below 1year	10	5	1	16
Above 1year	53	28	3	84
Total	63	33	4	100

H_o- Satisfaction level of incubatees with the T-TBI assistance in preparation of business plans has no significant influence over the time spend in incubation.

Table No:4.24

 Showing the application of chi-square test between satisfaction level of incubatees with the T-TBI assistance in preparation of business plans and time spend in incubation

O	E	(O-E)2	(O-E)2/E
10	(16*63)/100=10.08	0.0064	0.00063
5	(16*33)/100=5.28	0.0784	0.01484
1	(16*4)/100=0.64	0.1296	0.2025
53	(84*63)/100=52.92	0.0064	0.00012
28	(84*33)/100=27.72	0.0784	0.00283
3	(84*4)/100=3.36	0.1296	0.03857
Total			0.25949

Calculated Value=0.2594

Table Value at 0.05 significant level=5.991

Degrees of Freedom=2

Table value is greater than the calculated value. So, hypothesis is accepted. Therefore, satisfaction level of incubatees with the T-TBI assistance in preparation of business plans has no significant influence over the time spend in incubation.

Table No:4.25

 Showing the association between satisfaction level of incubatees with the T-TBI entry system and Investment opinion

Investment opinion	Satisfaction level of incubatees with the T-TBI entry system and Investment opinion			Total
	Satisfied	Moderate	Dissatisfied
Angel investment	6	17	3	26
Venture capital	31	41	2	74
Total	37	58	5	100

H_o- Satisfaction level of incubatees with the T-TBI entry system has no significant influence over the investment opinion

Table No:4.25

 Showing the application of chi-square test between satisfaction level of incubatees with the T-TBI entry system and Investment option

O	E	(O-E)2	(O-E)2/E
6	(26*37)/100=9.62	13.1044	1.3622
17	(26*58))/100=15.08	3.6864	0.2444
3	(26*5)/100=1.3	2.89	2.2231
31	(74*37)/100=27.38	13.1044	0.4786
41	(74*58)/100=42.92	3.6864	0.0859
2	(74*5)/100=3.7	2.89	0.78108
Total			5.17528

Calculated Value=5.175

Table Value at 0.05 significant level=5.991

Degrees of Freedom=2

Table value is greater than the calculated value. So, hypothesis is accepted. Therefore, satisfaction level of incubatees with the T-TBI entry system has no significant influence over the investment opinion.

CHAPTER-V

FINDINGS & SUGGESTIONS

FINDINGS:

From the analysis the researcher found that the effectiveness of services provided by T-TBI is good.

v  Majority of the incubatees responded were male within the age group of 20-25 who were qualified with degree and having experience below 1 year.

v  Majority of the incubatees responded that they receive Entrepreneurial Training, Infrastructural Facility& Business support services [ET&IF&BSS.

v  Most of the incubatees rated that the importance and the effectiveness of individual type of assistance services provided by the T-TBI programmes as good.

v  Majority of the incubatees rated the Research and Development facilities provided by T-TBI for Innovators is in average level.

v  Most of the incubatees rated about the building facilities provided by the T-TBI as good.

v  Majority of the incubatees rated the milestone-based operational guidance and technical assistance provided by T-TBI is in average level.

v  Most of the incubatees are satisfied with the evaluation of the training/learning programmes provided by T-TBI to the Innovators.

v  Majority of the incubatees are satisfied with the counseling programmes provided by T-TBI to the Innovators.

v  Most of the incubatees are satisfied with the market research and product marketing assistance provided by T-TBI.

v  Majority of the incubatees are satisfied with the seed fund provided by T-TBI to support their business.

v  Most of the incubatees are interested in venture capital.

v  Majority of the incubatees expect to spend 1 year in the incubation.

v  Most of the incubatees are highly satisfied about the support services provided by the incubator at the right time.

v  Majority of the incuatees are satisfied about the T-TBI assistance in preparation of business plans.

v  Most of the incubatees are satisfied about the entry system of T-TBI.

v  Majority of the incubatees strongly agree that have any opportunity to network with similar business.

v  Most of the incubatees are aware of the funding scheme from the government which is facilitated by T-TBI.

v  Majority of the incubatees are not aware about TePP funding provided by Department of Science and Industrial Research through T-TBI.

v  Most of the incubatees are not aware of Technology Idea Generator (TIG).

v  The researcher also found that the satisfaction level of incubatees with the support services has a significant influence over the time spend in incubation.

v  It is also found that the satisfaction level of incubatees with the T-TBI assistance in preparation of business plans has no significant influence over the time spend in incubation.

v  Finally, the researcher found that the satisfaction level of incubatees with the T-TBI entry system has no significant influence over the investment opinion

SUGGESTIONS

1.      Proper communication between the incubatees and T-TBI should be enhanced for  increasing the level of satisfaction.

2.      It is good to conduct regular meetings with T-TBI to provide guidance to improve the start-up company’s projects and should give proper guidance for financial management.

3.      Marketing expert guidance team should be started to help the new incubator to sell out their  product or services.

4.      More emphasis should given on business promotion.

5.      Better power management should be done.

6.      More support and advices about the business plans and the rules and regulations regarding it helps the start-up company to grow fastly.

7.      More awareness about T-TBI funding schemes should be given because most of them are not aware of it.

8.      Give periodic training/learning programmes to the incubatees for their improvement.

9.      The infrastructure facility should be increased, the parking facility should be increased.

10. Minor works should be done with more care.

11. A suggestion box can be introduced in the T-TBI where the incubatees can put their complaints and suggestions, this helps improve the services provided by T-TBI.

.

CONCLUSION

As my experience I would like to say that this study was very beneficial for me, I found that the entire experience very rewarding. I could get a good idea about the Effectiveness of the services provided by T-TBI.

The T-TBI has a wide range of service. It has more customized services and the company ensures quality in almost all of its services.

Based on the interviews and questionnaire, information many of the strengths and areas of improvement for business incubation in T-TBI. A business incubators today have many internal and external resources and tools to help new business grow and prosper. The internal mentoring and coaching resources available to the clients are invaluable to any new business. Businesses want to collaborate and socialize with other businesses. Incubators provide a crucial role of growing new businesses. This project gives a result about the Effectiveness of the services provided by T-TBI. Also the project study helps to understand about the customer satisfaction.

Text Books

C.R.Kothari, Research Methodology, Wishva Prakashan 2001

D.D.Sharma, Research methods in business

Raj Agarwal, Business environment, Second Edition, Excel Books, 2002

Philip kotler, Marketing Management, 11^th edition, Prentice Hall India, 2003

Alex miller, Strategic Management, Third edition, IRWIN/Mc Graw Hill, 1998.

Websites

        

www.google.com

www.technopark.org

www.keralait.com

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