Do you have the heart of an entrepreneur? Are you bursting with ideas and willing to take the plunge to start your own business? Then you should know about business incubators! These institutions can be hugely beneficial to young entrepreneurs who are new on the market.
Luxembourg may have a favourable environment for start-ups, but new businesses can quickly find themselves overwhelmed by the multitude of questions they have to answer. Questions like: What financing do I have access to? Which legal form should I choose? How am I going to manage my accounts? Where should I set up my business? How can I attract my clientele? Etc.
Business incubators exist to help new start-ups, and they can be an indispensable form of support throughout your company’s launch phase.
An incubator is a support structure that provides assistance to young companies in the early stages of their development. The goal is to help them become established and self-sufficient by granting access to a range of services, resources and even knowledge (office space, financial or legal advice, equipment, mentoring, etc.).
Incubators can be public entities, i.e. created by government bodies (chambers of commerce, chambers of trade, etc.) or by research or teaching institutions looking to familiarise their students with entrepreneurship and help launch their projects. Incubators can also be private initiatives set up by large businesses, banks or investors.
Business incubators bring a number of real advantages for budding start-ups:
Business incubators provide a turnkey service, where all the useful facilities and tools you need to create a company are under one roof.
Given these benefits, it can be tempting for young entrepreneurs to turn to an incubator when just starting out. However, there are also disadvantages that you need to be aware of:
Business incubators provide a turnkey service, where all the useful facilities and tools you need to create a company are under one roof. All you have to do is get in the door.
In order to benefit from the advantages offered by an incubator throughout the start-up phase of your company (which can vary from a few months to several years), you’ll often have to convince a panel that your business project is worthwhile.
To succeed, you’ll need to know the incubator’s entry criteria (sector of activity, target phase of development, etc.) and the admission procedure (application, pitch, etc.).
It’s important to remember that incubators may offer their services in exchange for a fee or provide capital against shares in the companies they support.
It all comes down to timing. Each one operates at a different stage of the company’s lifecycle, from creation to development.
Couveuses d’entreprise are pre-incubation facilities that offer training and advice in how to be an entrepreneur. Their main purpose is to test your business activity or project on a large scale before it’s officially launched in order to determine its viability. You can then start looking for clients and legally sending invoices under the couveuse for a short time.
Then you have incubators, which deal with companies that have just been created and support them during the start-up phase by providing access to things like office space, equipment and advice.
Next come business accelerators, which work with existing companies that are already self-sufficient but need an extra boost. Their clients are usually companies that would benefit from mentoring, investors, business angels, venture capitalists, etc.
The number of incubators in Luxembourg has increased in recent years, and they support entrepreneurs from a range of different sectors. Let’s have a look at some of the country’s main players:
Image: myLIFE
When it comes to investing, it’s advisable to take the long view and to follow…
Have you ever been to a meeting that seems to drag on with no meaningful…
In a hyperconnected world that constantly demands our attention through messages, notifications and alerts, it’s…
What distinguishes a manager from a leader? What are the rules of leadership, what mistakes…
Just launched a new product or service, or created an online store? Want to stand…
Lack of working capital can constrain the growth of many early-stage businesses. Founders may have…