1. Feasibility Study for establishing Agri Business Incubator in IIAM By SM. KARUPPANCHETTY Manager, Agri Business Incubator & Deputy COO, Agri Science Park – ICRISAT FEBRUARY-2007

3. Introduction The various approaches of supporting enterprises are Business Development Centre Business Incubation Technology Park Convergent or hybrid models Industry Cluster Business incubators have been proven to be an effective way of fostering sustainable business growth and stimulating entrepreneurship

4. Management and strategy advice Supply of one or several types of finance and search for complementary financing Personal networks Eventually: Hosting and administrative assistance Financial resources Prototype and market testing Access to commercial markets Eventually: Long-term strategic partnerships Eventually: Access to business angels and venture capitalists Concept testing Technical advice and support Intellectual property advice Seed capital Basic management advice Eventually: Access to business angels and venture capitalists Hosting and shared services Administrative assistance Consulting Eventually: Coaching –training- networking Access to finance Offering Technological start-ups generally ICT related Internal and external projects, generally related to the activity of the company. Projects internal to institutions prior to company creation External projects Small commercial craft or service companies. In some cases, high-tech companies Targets Profits by selling stocks from a portfolio of companies allowing risks to be spread Co-operation between companies within the portfolio Develop entrepreneurial spirit among employees – keep talents Monitoring - access to new technologies and to new markets Profits Commercialisation of technologies Development of entrepreneurial spirit Civic responsibility Image New sources of finance Job creation Reindustrialisation /revitalisation Economic development Support t o particular target groups or industries Development of SMEs and clusters Objectives High-Tech High-Tech High-Tech Mixed-uses Main Activity For Profit For Profit Non-profit Non-profit Goal Private Investors’ Incubators Corporate Incubators Academic and Scientific Incubators Local Economic Development Incubators

5. High levels of consolidation and restructuring of the sector Still looking for a successful model Testing the concept in numerous companies Likely to develop Rapid development under the aegis of public programs Regular development Increasing territorial coverage Trends Quality of projects & sourcing Level and conditions of the incubator payment in comparison with provided services Valuation of the incubator’s participation at entry and at liquidation Durability of the incubator Strategic position of the incubator for the corporate structure Management independence and ability to mobilize internal resources Durability of the of the incubator’s mission Conflicts about the objectives between the owners / the managers of start-up or the company Legitimacy inside the institution Legal status, governance, independence and operational flexibility Income sources Management quality Access to external resources and networks Durability –lack of resources stability Quality of management and provided-services - dependent on the quality of the manager Governance, risk of conflicts about the objectives, bureaucratic red tape, time spent in negotiating with the different partners Key Problems Legal services, public relations, recruiting, etc Access to industrial networks Strategic advice Coaching Hosti Access to industrial networks Strategic advice Coaching Hosti

7. When establishing the incubator, the management institution should be clear about the program benefits expected by stakeholders and the community. It is also essential that the institution is well aware of the reasons or motives prompting the incubator’s establishment

9. Defining the Incubator’s Focus Definition of the incubator’s focus determines the structure and types of services offered. An incubator can be classified as Traditional Incubator Technology-based Incubator Mixed Incubator Social Incubator Agribusiness Incubator Sectoral Incubator Key Issues Definition of the incubator’s focus must consider the local circumstances in which the incubator is to operate and the region’s strategic objectives Vocation Weaknesses Potential Leading Institution Entrepreneurial Culture:

11. Business opportunities : ABI IIAM Consumer Food Biscuits Bread & buns Popcorns Cashew apple Jams Squashes Roller Flour Mills Tomato Sauce & Ketchup Desiccated Coconut Industrial ACTIVATED CARBON ACTIVATED CHARCOAL ANIMAL GLUE MODIFIED STARCH HYDROGENATED CASTOR OIL CASEIN Ethanol Agro Inputs BIO-PESTICIDES BIO-FERTILIZERS Fertilizer mixtures Seed Industries

13. Defining the Stage of Enterprises to be supported through ABI IIAM The process of creating and developing Businesses Conception Emerging Growth Consolidation

15. Defining the ABI IIAM Location The best definition of the preferred location is choosing an area that satisfies the incubator’s current and future needs. The location depends on the incubator’s focus, since the companies’ activities may demand characteristics found in few of the region’s localities. Urban Suburban Rural Key Issues Infrastructure Flexibility: Focus: Master Plan

16. Defining the Organizational Structure of ABI IIAM To define a structure that makes management of the incubator possible. There are two groups of activities generally present in an incubator: Those related to operation of the incubator as an independent organization (a business); and Those related to developing the incubated companies. This normally composed of three managerial levels Board of Directors : Incubator Management Consultant Committee:

18. Revenue Model for ABI IIAM Revenue from tenants Rents/lease Revenue from sharing in client success-equity/royalty On-going government or donor funding Membership fee/Franchisee fee Service charge- Consultancy/Testing etc.,