The Hindu Business Line : Focus on `business incubator' system in Kerala

THE Industries Department of the State Government has drawn up a blueprint of the "business incubator" system that it intends to put in place as a means to promote small and medium industries in the State.

The proposed system is so designed as to provide a network of supporting services to the entrepreneurs to convert new and innovative technologies into products and market them. The sectors that have been identified for introduction of business incubators include low-end information technology, biotechnology, electronics and food processing.

According to officials in the Industries Department, a business incubator will have different cells to take care of aspects such as business consultancy, technology, finance, marketing and business facilitation. They will work in coordination to help the entrepreneur successfully launch the venture.

A "business consultation resource group" will be the first point of contact for the entrepreneur at the incubator. The group is responsible for sourcing and developing project ideas and profiles and scaling them appropriately, if required.

It will act as an interface mechanism between research and development institutions and investors and provide consultancy on various aspects of the industry. Another role of the group will be the identification of products.

A "technology resource group" will enter the scene after a viable business plan and product has been identified. It will realistically assess the prevailing scenario and the proposed product. The technology gap between the existing and envisaged will be closely studied so as to select the right technology and machinery.

The cell will also go into aspects such as "what technology, at what cost", productivity, environmental concerns and re-engineering, if required.

The next in line is "finance resource group", which will help the nascent firms in their initial attempts to mobilise funds. The group will interact with venture capitalists and also facilitate one-to-one negotiations between the parties.

In the area of marketing, a "marketing facilitation resource group" will provide the basic tie-ups to ensure an effective sales network for the products in the incubator. Besides, the group will try to create business linkages with companies in related fields elsewhere.

Finally, a "business facilitation resource group" will deal with the infrastructural services and logistical needs of the companies in the incubator. It is also expected to make available service like legal advice and inputs regarding financial management and controls.

The department has initiated steps to establish an incubator at the food processing park of Kerala Industrial Infrastructure Development Corporation (Kinfra) at Kakkancherry in Malappuram district. The incubator is being implemented by the Agency for Development of Food Processing Industries, an arm of Kinfra.