Check out an interview with the general coordinator of the ACATE incubator
Technological MIDI graduates, an incubator managed by the Santa Catarina Technology Companies Association (ACATE) and maintained by Sebrae/SC, expect a revenue increase of 63% for 2014, jumping from R$ 72.2 million to more than R$ 118 million. This group also expects to invest R$ 24.75 million in R&D this year, almost double the amount invested in the previous year (almost R$ 14.5 million). Already developing companies, which have 126 employees, expect an increase of more than 100% in revenue, closing 2014 with almost R$ 13 million. The numbers represent the total reported by 19 incubated companies and 32 of the 73 companies graduated in the Technological MIDI.
Despite the research data being encouraging, the general coordinator of the Technological MIDI, Gabriel Sant'Ana Palma Santos, in an interview with Portal ABES, highlights the difficulties and challenges of an incubator to support economically sustainable business models and promote the development of new companies.
– What are the main challenges for the management of an incubator?
One of the great challenges faced by incubators is the implementation of a sustainable economic model. Consolidating a permanent incubation program, with programs, courses, events, consulting and high-level support implies considerable costs. Another major challenge is the need for the incubator to continually adapt to two factors: a) the speed and dynamics of markets and technologies, which demand from incubators a continuous improvement of their processes and support, in order to accompany and encourage the development of incubated companies and; b) the need to offer a broad incubation program and support different companies, while the needs and demands are particular and individual. Offering the correct medicine, at the right dose and at the right time to each incubated company is a great challenge.
– What are the conditions that favor the development of incubated companies?
Participating in an incubation process means being inserted in an environment conducive to sharing knowledge, exchanging experiences, creating high-level networking, approaching investors, participating in courses, events, lectures, business missions, training programs, consulting , adequate physical space, among many other benefits. Maturity and learning from mistakes and successes are greatly enhanced within an incubator, which is concerned both with the development of the company and with the growth of the entrepreneurs themselves.
– What are the factors that still need to be improved for the development of these companies?
To ensure greater success in the incubation process, it is essential that the incubator has a well-defined evaluation methodology and constantly monitors the companies, so that there is a more assertive conduct in actions related to management processes: strategy, business model and project management, finance, customers, commercial and marketing, services, innovation, products, infrastructure and people. Incubated companies, in turn, have the challenge of joining efforts both for the development of their product or service and for the implementation or improvement of their management processes.
– How to guarantee the survival of a graduated company?
For a company to become a graduate, some aspects related to the consolidation of the business are usually analyzed, such as financial indicators, maturity of the products or services developed, market positioning, maturity of partners and management processes. In this way, it is possible to foresee greater preparation for competition in national and international markets and the existence of a wide network of contacts. However, there is no way to guarantee the long-term success of every company. This factor will be more conditioned by market factors and the management capacity of the partners, than by the incubator or the technology developed.
– What are the obstacles and facilities in raising funds (public and private)?
Small companies usually have difficulties in: the elaboration (writing) of projects for fundraising; the ability to offer financial compensation; proof of experience and maturity; the mitigation of business risks and the offering of real guarantees, in the case of financing. On the other hand, it can be said that there have never been so many resources available to companies in Brazil, whether public, such as public notices and financing lines, or private, through banks, angel investors and investment funds. In this second case, the greatest difficulty is proving the potential of the business and meeting the established forecasts and goals.
– Regarding public policies, what can still be done to encourage business incubation?
It is necessary for the government to support and realize the importance of incubators as support agents for new businesses and as transforming agents and drivers of the technology and innovation segment, fostering the generation of innovative and competitive companies,
An alternative to improve this scenario would be to encourage strategic partnerships, through programs and public notices to foster innovation in order to promote the development of startups.
Public policies aimed at micro and small companies directly impact the business life cycle, therefore, the tax burden needs to be simplified and bureaucracy to obtain resources minimized. This change will encourage the creation and survival of companies for a longer period of time, directly impacting local development and generating employment and income.
– Could you make a comparison between the innovation environment in Brazil and abroad? Where has Brazil advanced in recent years?
Each country has its own characteristics and specific models adapted to its markets or government. There are countries where the incubation process is directly linked to the financial support of public bodies, so that physical space and some specific benefits are offered to resident companies, as in the case of several Latin American countries. In other places, such as the United States, incubation is managed by the private sector, which is concerned with the financial return of each company in the short term and usually accelerates the incubation period in order to generate profitable businesses more quickly. Brazil is moving towards a mixed model between what is called an accelerator and what we traditionally know as a business incubator. This means that the incubation process takes an average of 2 to 4 years, in which companies start in pre-operational stages until they are able to test and introduce products or services to the market with relative success. Fortunately, Brazil is currently experiencing a more tolerant culture of failure and a growing number of investors approaching incubators and investing in Brazilian startups.
Despite the research data being encouraging, the general coordinator of the Technological MIDI, Gabriel Sant'Ana Palma Santos, in an interview with Portal ABES, highlights the difficulties and challenges of an incubator to support economically sustainable business models and promote the development of new companies.
– What are the main challenges for the management of an incubator?
One of the great challenges faced by incubators is the implementation of a sustainable economic model. Consolidating a permanent incubation program, with programs, courses, events, consulting and high-level support implies considerable costs. Another major challenge is the need for the incubator to continually adapt to two factors: a) the speed and dynamics of markets and technologies, which demand from incubators a continuous improvement of their processes and support, in order to accompany and encourage the development of incubated companies and; b) the need to offer a broad incubation program and support different companies, while the needs and demands are particular and individual. Offering the correct medicine, at the right dose and at the right time to each incubated company is a great challenge.
– What are the conditions that favor the development of incubated companies?
Participating in an incubation process means being inserted in an environment conducive to sharing knowledge, exchanging experiences, creating high-level networking, approaching investors, participating in courses, events, lectures, business missions, training programs, consulting , adequate physical space, among many other benefits. Maturity and learning from mistakes and successes are greatly enhanced within an incubator, which is concerned both with the development of the company and with the growth of the entrepreneurs themselves.
– What are the factors that still need to be improved for the development of these companies?
To ensure greater success in the incubation process, it is essential that the incubator has a well-defined evaluation methodology and constantly monitors the companies, so that there is a more assertive conduct in actions related to management processes: strategy, business model and project management, finance, customers, commercial and marketing, services, innovation, products, infrastructure and people. Incubated companies, in turn, have the challenge of joining efforts both for the development of their product or service and for the implementation or improvement of their management processes.
– How to guarantee the survival of a graduated company?
For a company to become a graduate, some aspects related to the consolidation of the business are usually analyzed, such as financial indicators, maturity of the products or services developed, market positioning, maturity of partners and management processes. In this way, it is possible to foresee greater preparation for competition in national and international markets and the existence of a wide network of contacts. However, there is no way to guarantee the long-term success of every company. This factor will be more conditioned by market factors and the management capacity of the partners, than by the incubator or the technology developed.
– What are the obstacles and facilities in raising funds (public and private)?
Small companies usually have difficulties in: the elaboration (writing) of projects for fundraising; the ability to offer financial compensation; proof of experience and maturity; the mitigation of business risks and the offering of real guarantees, in the case of financing. On the other hand, it can be said that there have never been so many resources available to companies in Brazil, whether public, such as public notices and financing lines, or private, through banks, angel investors and investment funds. In this second case, the greatest difficulty is proving the potential of the business and meeting the established forecasts and goals.
– Regarding public policies, what can still be done to encourage business incubation?
It is necessary for the government to support and realize the importance of incubators as support agents for new businesses and as transforming agents and drivers of the technology and innovation segment, fostering the generation of innovative and competitive companies,
An alternative to improve this scenario would be to encourage strategic partnerships, through programs and public notices to foster innovation in order to promote the development of startups.
Public policies aimed at micro and small companies directly impact the business life cycle, therefore, the tax burden needs to be simplified and bureaucracy to obtain resources minimized. This change will encourage the creation and survival of companies for a longer period of time, directly impacting local development and generating employment and income.
– Could you make a comparison between the innovation environment in Brazil and abroad? Where has Brazil advanced in recent years?
Each country has its own characteristics and specific models adapted to its markets or government. There are countries where the incubation process is directly linked to the financial support of public bodies, so that physical space and some specific benefits are offered to resident companies, as in the case of several Latin American countries. In other places, such as the United States, incubation is managed by the private sector, which is concerned with the financial return of each company in the short term and usually accelerates the incubation period in order to generate profitable businesses more quickly. Brazil is moving towards a mixed model between what is called an accelerator and what we traditionally know as a business incubator. This means that the incubation process takes an average of 2 to 4 years, in which companies start in pre-operational stages until they are able to test and introduce products or services to the market with relative success. Fortunately, Brazil is currently experiencing a more tolerant culture of failure and a growing number of investors approaching incubators and investing in Brazilian startups.
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