Nourishment for the piggy bank: facilitation of external financing in incubators

Document type: Journal Articles
Article type: Original article
Peer reviewed: Yes
Author(s): Lise Aaboen, Hans Löfsten, Lars Bengtsson
Title: Nourishment for the piggy bank: facilitation of external financing in incubators
Translated title: Pengar i spargrisen:inkubatorers facilitering av extern finansiering
Journal: International Journal of Technology Transfer and Commercialisation
Year: 2011
Volume: 10
Issue: 3/4
Pagination: 354-374
ISSN: 1470-6075
Publisher: Inderscience
URI/DOI: 10.1504/IJTTC.2011.040895
Organization: Blekinge Institute of Technology
Department: School of Management (Sektionen för management)
School of Management S- 371 79 Karlskrona
+46 455 38 50 00
http://www.bth.se/mam/
Authors e-mail: lars.bengtsson@bth.se
Language: English
Abstract: In this paper, we argue that incubators facilitate access to external financing for their incubatees. Incubators use a wide range of activities to facilitate the accessing of external financing from public and private sources.
We have grouped these into two sets of activities. The general activities aim to develop the conditions for external financing through information, education of incubatees, network-building and lobbying activities. The specific activities aim to assist the individual incubatee in their pursuit of external finance through help in application procedures, establishing need for capital, making contacts with the best public or private investor, etc. Based on the survey data, we have also shown that it is more common for incubatees to attract external capital compared to non-incubator firms. The incubatees seem especially successful in attracting public capital. The incubatees also attract more private external capital, however, the observed frequency of private capital in the incubatees are low.
Summary in Swedish: Företag i inkubatorer attraherar lättare externt kapital än liknande företag ej lokaliserade i inkubatorer
Subject: Business Administration\Organization
Keywords: business incubators; new technology-based firms; NTBFs; financing; liabilities of newness; facilitation.
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