In
the process of realizing a project or business idea, entrepreneurs face
numerous problems in different subjects such as legal, economic, technological,
etc. It is very difficult for entrepreneurs to cope with these problems alone
and to establish and successfully maintain their companies. However, successful
entrepreneurs, who find solutions to important problems in our lives are also contributing to the national economy. Recognizing this important economic and
social contribution, public and private organizations have started to solve the
problems of entrepreneurs in different processes and support entrepreneurs in
many ways by establishing pre-incubation centers, incubation centers and acceleration
programs. The main feature that distinguishes pre-incubation centers,
incubation centers and acceleration programs from each other is that they are
suitable for entrepreneurs in different processes.
Pre-incubation Phase
Pre-incubation
is the process that usually involves a technology-focused business idea or
project, where startups that have started working alone or with a team but have
not been incorporated to make this idea come true. Entrepreneurs in the
pre-incubation process need specific training, mentoring and consultancy
services to understand whether their ideas are viable, commercializable,
scalable, etc. Pre-incubation centers provide these opportunities to
early-stage entrepreneurs for an average of six months to a year. In addition
to these, the physical facilities needed by entrepreneurs such as open offices
and common working areas are provided to entrepreneurs by pre-incubation
centers. The duration of these opportunities provided to entrepreneurs also
varies according to which sector the entrepreneurs will operate in. While
software-focused startups are expected to complete this phase in an average of
six months, this period may be longer for startups operating in the health
vertical.
Entrepreneurs
set up an accurate and applicable business plan by clarifying their ideas with
the support they receive in pre-incubation centers. At this stage, the number
of entrepreneurs who change their business idea and turn to a more feasible
business idea by taking advantage of the knowledge and experience of mentors
and consultants is quite high. In the pre-incubation phase, the important thing
is to establish a team that can do the job and to makes the right business plan
that will save money. At the end of the pre-incubation, entrepreneurs are ready
to go into company with a correct and detailed business plan and implement
their plans. After that, they continue their work with the incubation process. Since
the pre-incubation process is an early stage, entrepreneurs often receive
financial support from government agencies such as TÜBİTAK and KOSGEB. Venture
capital funds and angel investors rarely invest at this stage. The ITU Çekirdek
and ANAÇ pre-incubation centers are examples of pre-incubation centers that
successfully carry out the pre-incubation phase in our country.
Incubation Phase
At the end of the pre-incubation period, entrepreneurs who complete the business
plan and are ready for incorporation, start the incubation phase. During the
incubation period, entrepreneurs continue to need physical facilities and
training, consultancy and mentoring services, similar to the pre-incubation
phases. These needs of entrepreneurs are met while in the incubation center. The
length of the incubation period varies between 1-3 years depending on the
sector of the enterprise. Startups that take longer to obtain certificates and
patents in sectors such as health, food, etc. spend longer incubation periods
than software companies.
Entrepreneurs
set up their companies at the incubation stage and produce their minimum viable
product. At this stage, the technical support that entrepreneurs need,
especially when developing products, are provided by incubation centers. After
the product is developed, the commercialization of the product, which is one of
the most difficult stages of the enterprise process and management, begins. The
main reason why this stage is difficult is that commercialization efforts are
costly. Due to the costs incurred, the financing needs of companies increase
and they need to find new supports. This process can work differently depending
on the sector the entrepreneurs are in or the product they develop. For
example, licenses and certificates create serious costs for entrepreneurs in
the health field.
It
is easier for startups to receive investments from angel investors and venture
capital funds during the incubation phase compared to the pre-incubation
process. Incubation centers support companies in their investment search
processes by organizing meet-ups, demoday events, so that their companies are
visible and find investments.
In
our country, there are many incubation centers supported by the state or
private sector and the number of these centers is increasing day by day. ODTÜ
ATOM incubation center, Boğaziçi HayalEt incubation center and TEB enterprise
house can be considered as good examples for incubation centers.
Entrepreneurs
who stand out with their business plans and the capabilities of their teams and
who have high awareness of the functioning of the entrepreneurship ecosystem
can skip the pre-incubation stage and settle directly in the incubation center.
Acceleration Phase
Acceleration
is the process in which the problems of companies that have created their
products, have started commercialization studies but have difficulties in
gaining market share and globalization and these problems can be solved with
the help of acceleration programs during this phase. The concept of
acceleration can be considered as a new model for the entrepreneurship world. The
first acceleration program in the world was Y Combinator, which was established
in 2005 and is still working. It is not correct to describe it as a continuation
of the incubation phases because it is a new model and constantly renews itself
according to the needs of entrepreneurs. Acceleration programs are quite
different from pre-incubation and incubation processes. Institutions that
organize the program usually restrict the duration of the program to 6-12
months and want all companies to start the program at the same time. Thus, all
companies participate in the same trainings and events at the same time and
appear before investors at the same time. This situation ensures that
competition and interaction between companies is high.
Since
the products of the companies participating in the accelerator programs are
ready and commercialization studies have started, these companies usually start
to earn income. In addition, since it is possible to compare the sales,
turnover, profit, etc. expectations of the company with the realized values at
this stage, these companies attract the attention of venture capital funds and
angel investors. Private companies and funds not only invest in accelerator
companies, but also often organize acceleration programs. Bayer and Türkiye İş
Bankası acceleration program (WorkUp) are examples of these companies.
To
sum up, Entrepreneurs differ from hierarchically structured private
institutions that make slow decisions with their innovative business ideas,
fast and flexible structures. Because of these features, they are in an
important position both economically and socially. Therefore, it is very
important that the entrepreneurs are supported by the state and the private
sector according to the stage they are in, namely, the business plans, the
status of the product they have developed, their commercialization status, etc.
When startups get the necessary support, it can be a very profitable investment
for their investors. Because of these, the budgets and numbers of both the
entrepreneurship ecosystem and pre-incubation, incubation centers and
acceleration programs will continue to increase, thus their importance in the
economy will increase even more.
