(Eds: Rehashing para 3 with correct attribution) Incubated startups better at topline growth: Report

Mumbai, Jan 16 (PTI) Startups that are incubated arebetter at clocking higher top-line growth than those launchedwithout such backing, says a study.According to the study, in over 40 per cent of thesampled incubators, growth rate of graduated companies interms of turnover has been more than 20 per cent, while 38 percent saw growth in the range of 10-20 per cent.The study by the Ahmedabad-based EntrepreneurshipDevelopment Institute of India (EDII) for the Department ofScience & Technology, has also compiled the best practicesfollowed across the world for incubators.The best practices include parameters like entrycriteria, selection process, pre- and post-incubationservices, infrastructure, human resources, performance,financials and exit strategy among others."The overall objective of the study is to assess theeffectiveness and sustainability of incubators, major issuesfaced by them and to evolve a comprehensive strategy forsustenance and growth of the incubation movement, keeping inview the global best practices in incubation space," said SBSareen, director at the Centre for Advancing and LaunchingEnterprises at EDII.The study is based on analysis of data received from29 incubators, their tenants and personal interactions with 10incubators chosen from across the country, he added.With a view to enhance effectiveness of incubation,some actions suggested by the study include promotingprivately-owned seed funds, promoting incubation clusters,localizing networking platforms, and help graduateentrepreneurs as investors for new incubators.It also suggests promoting incubators focused onemerging domains, and facilitating CSR fund routing tobusiness incubators and startups.The study observes that in about 40 per cent of thesampled incubators, clients graduated in less than 16 monthsafter entering the incubator, while in about half the sampledincubators, it took over 24 months.Further, in about half the sampled incubators, the average annual job creation by graduated companies has been less than 20 and in about just 7 per cent of them, the average annual job creation by graduated companies has been over 120.

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