Business Incubation Strategy of High-Tech Venture Firms in a Science Park - Technopolis: Best Practices for Science and Technology Cities - page 146

Fig. 3 Model of venture start-up in a Science park

Figure 3 shows the Model of Business Incubation in a science park. It is nec-
essary to gain a more complete understanding of the relationship between a
venture business and a science park and to suggest the policy implications for
nurturing venture business. We assumed the following basic hypothesis on the
postulated model: venture capital and other infrastructure can help explain the
encouragement of entrepreneurship and hatching venture business in the science
town. We also assumed that part of venture business through stimulation of
entrepreneurship could be explained by activities of infrastructure, such as BI
technology commercialization center, venture capital, and so on.
The model explains the hatching process of venture business in a science park
or town. It includes the formation of stimulating activities for entrepreneurship in
venture start-up, and the success of venture business.
It is important for high-tech venture firms to take sufficient support from the
infrastructure to survive as successful firms in the market. Business Incubator
should provide financial assistance to small businesses. It takes the form of seed
capital, which can be either debt or equity capital, and varies in amount depending
on the condition of the small business and the risk involved. There are two kinds of
sponsorship for the BI. City-sponsored incubator should provide a business finance
coordinator in the building to work with businesses to seek outside seed capital.
The revolving fund administrator could act as a finance coordinator as well as a
direct provider of funds. Such financial assistance is crucial to the success of a