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University of Wales

Trinity Saint David

Dissertation

MBA SBMA7049-L

Evaluating Business Incubation Services : A Case Study of Business Incubation Program (BIP) in Nepal

UWL MBA Entrepreneurship

Submitted by Uran.joshi@gmail.com

Submitted to Dr. Stanley Lees

Declaration i

This dissertation is submitted in fulfillment of the MBA Entrepreneurship of University of Wales Trinity Saint David at College of Technology London. I hereby declare that this dissertation is result of my own research and inputs ,all sources are duly acknowledged and no portion of the work referred to in this dissertation has been submitted in support of any application for another degree or qualification of this or any other university or institute of learning.

Uran Joshi UWL MBA Entrepreneurship 26th October 2010

Acknowledgment

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I would like to take this opportunity to express my appreciation to my Supervisor Dr. Stanley lees for attention, guidance and insight. My gratitude also goes to Ms. Rakshya Aryal, Mr. Rabindra Kumar Neupane, Er. pradeep Jha for support and valuable suggestions during research. I would also like to express special appreciation to Ms. Heema Rai, Mr. Harish Bhusal ,Mr. Shashi Bhattari and all Participant Incubatees of BIP for their full support in this research. I would also like to thank specially to Mrs. Simona and Mr. Adeel for full support in my study. Lastly, I sincerely would like to thank my Parents, my Family and Friends , Mr. Saurav Joshi, Ms. Mamta Amatya, for motivation and support during my study period.

Uran Joshi uran.joshi@gmail.com London,United Kingdom 26th October ,2011

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Abstract

Government from both developed and developing countries has recognized the mechanism of business incubation as way to support the development of micro, small and medium enterprises. A business incubation service is an appropriate tool for economic development which helps in job creation on one hand and less business failures on the other hand. Selection, Infrastructure, Business Support, Mediation ,Graduation are found to be the main incubator model components of business incubation This research aims to focus on evaluating the selection process , infrastructure services provided, business support provided, mediation and networking provided and graduation policy of Business incubation Program(BIP) operated by Government of Nepal. The research also aims to examine and identify the problems of growth facing by new start up firms in Nepal. The methodology consisted of data collection by questionnaire with selected key-informant from incubator and participant incubatees. Selection of clients was found to be based on strict criteria that are in alignment with the available resources and reasonable cost for development. The users of physical infrastructure provided by Business incubator was seen low. The major reason for not using was being enterprises located in different places of country. The business support was found to be reactive and episodic. The leadership training, financial management ,marketing management Accounting and taxation, business registration services were provided to all where as other business services were provided according to individual need. The mediation service provided by incubator was found to be rated highly by incubator (provider side) but was perceived less by incubatees side. All the mediation service was provided according to individual need of incubatees. The graduation policy was found to be flexible. After a certain period , with mutual agreement between incubator and incubatee ,the firm was graduated.

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List of Figures
Figure 1- Stages of Business Growth ( Greiner 1972) ......................................................... 4 Figure 2 -Stages of Business Growth, (Churchill and Lewis, 2007) ....................................... 4 Figure 3- Campbell,Kendrick,and Samuelson framework(Campbell et al.,1985) ................... 8 Figure 4 - Business Incubation Framework for Research (incorporating Churchil and Lewis Growth Stage, 1983 ............................................................................................................ 11 Figure 5-Age of Incubatees ................................................................................................. 22 Figure 6-Gender ratio .......................................................................................................... 22 Figure 7-Educational background........................................................................................ 23 Figure 8-Importance of Selection criteria as perceived by Incubator ................................... 24 Figure 9-Importance of Selection criteria as perceived by Incubator ................................... 24 Figure 10-Infrastructure users ................................................ Error! Bookmark not defined. Figure 11- Perceived Quality of Infrastructure service by Incubator.....Error! Bookmark not defined. Figure 12-Perceived Quality of Infrastructure service by Incubatees ...Error! Bookmark not defined. Figure 13-Perceived Quality of business Support by Incubator ......................................... 25 Figure 14-Perceived Quality of Business Support by Incubatees ........................................ 25 Figure 15-Perceived Mediation by Incubator .......................... Error! Bookmark not defined. Figure 16- Perceived Mediation by Incubatees....................... Error! Bookmark not defined. Figure 17-Incubatees Views on Mediation statements ........... Error! Bookmark not defined. Figure 18-Incubatees Views on Mediation Statements ........... Error! Bookmark not defined. Figure 19-Important criteria for Graduation as Perceived by Incubator ..... Error! Bookmark not defined. Figure 20-Important criteria for graduation as Perceived by Incubatees ............................ 27 Figure 21-Financial resource problem as perceived by Incubator..........Error! Bookmark not defined. Figure 22-Financial resource problem as perceived by Incubatees .......Error! Bookmark not defined. Figure 23-Marketing resource problem perceived by Incubator .............Error! Bookmark not defined. Figure 24- Marketing resource problem perceived by Incubatees .........Error! Bookmark not defined. Figure 25-operational/production problems perceived by Incubator .................................... 28 Figure 26-operational/production problem perceived by Incubatees......Error! Bookmark not defined. Figure 27-General management Problem perceived by Incubator ....................................... 28 Figure 28-General management Problem perceived by Incubatees .................................... 29 Figure 29 -Owner related problems perceived by Incubator ................................................ 29 Figure 30-Owner related problems perceived by Incubatees ............................................... 30 Figure 31-Perceived Effect of Business Incubation on Incubatees ........Error! Bookmark not defined. Figure 32-The success of business incubation perceived by Incubator .Error! Bookmark not defined.

Figure 33- measure of success of incubatee as perceived by Incubatees ... Error! Bookmark not defined.

List of Table
Table 1- Business Incubation Program Board Members,source (BIP, 2007) ....................... 20

Abbreviations
I/NGO ITPF DoCSI BIP FNCCI KUSoM NAST ITPF MoEST International/National Governmental Organization Information Technology Professional Forum Department of Cottage and Small Industries Business Incubation Program Federation of Nepal Chamber of Commerce & Industry Kathmandu University, School of Management National Association of Science & Technology Information Technology Professional Forum Ministry of Environment, Science & Technology

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Table of Contents
Acknowledgment ................................................................................................................ ii Abstract .............................................................................................................................. iv List of Figures ..................................................................................................................... v List of Table ........................................................................................................................ vi Abbreviations ..................................................................................................................... vi Chapter 1 . Introduction ..................................................................................................... 1 1.1 1.2 Background............................................................................................................. 1 Research Strategy .................................................................................................. 1

Chapter 2. Literature Review .............................................................................................. 3 2.1 Business Growth ........................................................................................................ 3 2.1.1 Factors Related to Business Growth .................................................................... 6 2.2 Business Incubation: Tool for Business Growth ........................................................... 6 2.3 Business Incubator ...................................................................................................... 7 2.4 Business Incubation .................................................................................................... 8 2.4.1 Selection ............................................................................................................... 8 2.4.2 Infrastructure ......................................................................................................... 9 2.4.3 Business support.................................................... Error! Bookmark not defined. 2.4.4 Mediation ............................................................... Error! Bookmark not defined. 2.4.5 Graduation ............................................................................................................ 9 2.5 Measure of Incubator Success .................................................................................... 9 2.6 Measures of Incubatee success. ............................................................................... 10 2.7 Business Incubation Framework for Research ........................................................... 10 Chapter 3. Methodology ................................................................................................... 12 3.1 Research Philosophy ................................................................................................. 12 3.1.1 Positivism............................................................................................................ 13

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3.1.2 Realism ............................................................................................................... 14 3.1.3 Phenomenology .................................................................................................. 14 3.2 Purpose of Research ................................................................................................. 15 3.2.1 Exploratory Studies ............................................................................................. 15 3.2.2 Descriptive Studies ................................................ Error! Bookmark not defined. 3.2.3 Explanatory Studies ............................................... Error! Bookmark not defined. 3.3 Research Strategy ..................................................................................................... 15 3.3.1 Experiment .......................................................................................................... 15 3.3.2 Survey................................................................................................................. 15 3.3.3 Case Study ......................................................................................................... 16 3.4 Research Conduct ..................................................................................................... 16 3.4.1 Primary Data Collection....................................................................................... 16 3.4.2 Secondary Data Collection .................................................................................. 17 3.5 Methodology in practice ............................................................................................. 18 Chapter 4: Findings .......................................................................................................... 20 4.1 Business Incubation program (BIP) ........................................................................... 20 4.2 Summary of Data Collection Experience.................................................................... 21 4.3 Findings ..................................................................................................................... 21 4.3.1 Incubatee Background Information ..................................................................... 22 4.3.2 Selection Policy ................................................................................................... 23 4.3.3 Infrastructure ....................................................................................................... 24 4.3.4 Business support................................................................................................. 24 4.3.5 Mediation ............................................................................................................ 26 4.3.6 Graduation Criteria .............................................................................................. 26 4.3.7 Problems of Growth ............................................... Error! Bookmark not defined. 4.3.8 Perceived Effect of Business Incubation on Incubatees ..................................... 30 4.3.9 Measure of Success of Business Incubation by Incubator. ....Error! Bookmark not defined. 4.3.10 Measure of Success of Incubatee firm as perceived by Incubatees................. 30 Chapter 5: Discussion and limitations ............................................................................ 30 5.1 Discussion ................................................................................................................. 30 5.2 Limitations ................................................................................................................. 30 Chapter 6: Conclusion and Recommendation ................................................................ 32 6.1 Conclusion................................................................................................................. 32 6.2 Reflections................................................................................................................. 32 6.3 Recommendations..................................................................................................... 32 viii

6.4 Contribution ............................................................................................................... 32 Bibliography ...................................................................................................................... 33 APPENDIX A- Key-Informant (Incubator) Survey Questionnaire ................................... 36 APPENDIX B- Participant Incubatee Survey Questionnaire .......................................... 44 APPENDIX C- List of Key- Informant ............................................................................... 48 APPENDIX D - List of Participant Incubatee.................................................................... 49 APPENDIX E -Records of Meeting ................................................................................... 50 APPENDIX F-Introduction Letter ..................................................................................... 55

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Chapter 1 . Introduction
1.1 Background
There have been some isolated and uncoordinated activities for enterprises promotion services in Nepal for past few decades. According to Nepal (2006), Notably ,the activities targeted for enterprise development are under government programs or through donor assisted projects. The programs ranges from technical and management training, counseling, information providing, credit facilities, infrastructure facilities through public sector. In year 2003, Information Technology Professional Forum (ITPF) initiated to assess the enterprise environment and design. The environment and need assessment study suggested about possible Business incubation program. In 2004-2005 ,with grant assistance by infoDev Incubator Initiative ,project of The World Bank, ITPF conducted a study named as Business Incubation Initiative in Nepal Project . the objective was to study the feasibility of Business Incubation Center (BIC) concept and identify possible stakeholders, and network for nurturing the economic growth of Nepal. The study suggested some models for BIC development . one was suggested as Business incubation center in Kathmandu under Department of Cottage and Small Industries, Government of Nepal. other one was suggested as Information Technology Park at Banepa , which would run under fund from Government. According to Incubator Initiative Planning Grant (2006) the Business Incubation Center, Kathmandu was established in 2007 under the lead role of Department of Cottage and Small Industry, Government of Nepal. It was administered by Government Development Committee Act, 2013 with a governing board comprising representation from the government, Academic Sector, Business Sector, Technical and Research Centers, I/NGOs and experts in the field of incubation. The initiation was taken by preparing a business plan to operate Business Incubation Program (BIP) under the DoCSI. Since then, the one and only Business Incubation Program in Nepal, is running in DoCSI premises located at Kathmandu, Nepal. The objectives of initiating the Business Incubation Program are to: To graduate successful enterprises providing incubating facilities. To improve and upgrade system and process in the areas of small and micro industries through innovation and new technology. To create demand for further business incubation services in other parts of Nepal through the demonstrative success of new enterprises. To create and enhance network of experts & mentor in management, marketing, finance, Communication and other technical skills to be utilized by clients. To create and enhance network of resource (laboratories, libraries, incubating space, finance, etc.) in the country for the possible use by clients.

1.2 Research Strategy


This study aims to evaluate Business incubation services and analyze the service provided with focus on case study of Business Incubation Program running in Nepal .The objectives of this study mainly are :

-To critically review the literature on incubation and business growth -To develop a instrument for evaluating the business incubation services in Nepal -To explore the challenges and opportunities to incubator organization and tenant companies -To recommend conditions in which business incubation services can provide greater benefit towards promoting successful enterprises in Nepal and other developing countries.

The study first aims to review the literature with focusing on business growth and the factors related to business growth of small business. The study will also study working framework models and success measures of business incubation suggested by various authors . The methodology incorporates interview administered questionnaire for Primary data collection with selected keyinformants from Incubator and Participant Incubatees of Business Incubation Program. Chapter 4 consists of findings from data collection which are interpreted and evaluated with weighted factor analysis. Further analysis and discussions over the issues around the literature review and in practice seen are discussed with limitations of study in chapter 5. Lastly, chapter 6 summarizes the study with conclusion and some recommendations as thought important.

Chapter 2. Literature Review


2.1 Business Growth
Freel (1999) as cited by Beaver, 2002 states that the person or entrepreneur that enters small business ownership can be classified as the one who go into self-employment to pursue their own interest and the one who go into small business ownership with desire to develop business, achieve growth ,increase employment and grow into a medium-sized or large firm. The former are predominantly lifestyle businesses ( Burns and Dewhurst,1996). They dont display any aspiration to grow or develop beyond a certain size and complexion and mainly concerned with survival and maintenance of lifestyle. The latter type will be concerned with growth and expansion.

Those small firms who desire to achieve growth and enterprise development will be affected by different factors related opportunity sets, managerial abilities and resources. Storey (1994) as cited in Beaver (2002) mentions the background and access to resources, nature of firm, and the strategic decisions taken by firm are three key influence on growth rate of small independent firms.

Growth models are useful in benchmarking and draw lessons for survival and growth of firms characterized with similar business features and operating in similar business climate (Poutziouris, Binks and Bruce, 1999). Much of early theoretical work on business growth and development of small firms are attempted in terms of stage , or life cycle ,models of firm growth. There are common problems which arise at similar stages of business development. These common problems can be organized into a framework which helps to deeper understanding of nature ,and problems of businesses.

Such an understanding of growth pattern of small firms and the factors that trigger growth aspirations or conversely hamper growth can aid in assessing current challenges. It can help in anticipating the key requirements at various points, during the start-up period and the need for delegation and changes in their managerial roles (Churchil and Lewis, 2007).

The most commonly cited stage models of business growth are those developed by Greiner(1972) and Churchill and Lewis(1983). Greiner (1972) offers a five-stage framework for business development but considering the managerial changes faced by founder. The phases are Growth through Creativity, Growth through Direction, Growth through Delegation, Growth through Coordination, and Growth through Collaboration.

Figure 1- Stages of Business Growth ( Greiner 1972)

Fig. 1 represents the stages of business growth of Greiner model. Each growth phase is followed by crisis that shows need of changes in way of managing business if it has to continue to grow. If crisis cannot be overcome then there is possibility of failure. The length of time in each phase depends on nature of firm and industry.
Figure 2 -Stages of Business Growth, (Churchill and Lewis, 2007)

Churchill and Lewis (1983) model Fig 2 link marketing, people and financial management issues. The five stages are Existence, Survival, Success, Take-Off, and Maturity. The key factor which affects the success or failure in different stages of its life is developed as attributes of Owner-manager and Resources.

Stage I: Existence In this stage the problem faced by business is obtaining customer and delivering of product. The companys first strategy is to remain alive. the owner is the one who performs the entire important task and makes decision. If company is unable to get sufficient customer acceptance or cannot deliver product ,owner closes the business as capital runs out . those companies who can remain in business become stage II survival business. Stage II: Survival In this stage ,the business is now a workable business entity. The business provides and satisfies the customers sufficiently with products or service. now the key problems have shifted to relationship between revenue and expenses than mere existence. In this stage, the company grows in size, the profitability also increases and moves to stage III. Most of companies remain at survival stage, earns marginal returns on invested time and capital , and eventually leave business after the owner retires or gives up. Stage III: Success There are alterative options for owner in this stage. The owner can either exploit the companys achievements and expand or keep the company stable and profitable.Thus, a key issue is whether to use the company as a platform for growtha sub stage III-G companyor as a means of support for the owners as they completely or partially disengage from the companymaking it a sub stage III-D company. In this stage, the company has very good economic condition. The size and product market penetration is above average and earns profit. The company can stay in this stage for long time unless the external business environment changes, and reduce its competitive abilities. In success growth sub stage the owner assesses the resources and decides for growth of company. The owner arranges cash using borrowing power and risks for financial growth. The owner is thus far more active in all phases of the companys affairs than in the disengagement aspect of this phase. If it is successful, the III-G company proceeds into Stage IV. Indeed, III-G is often the first attempt at growing before commitment to a growth strategy. If the III-G company is unsuccessful, the causes may be detected in time for the company to shift to III-D. If not, retrenchment to the Survival Stage may be possible prior to bankruptcy or a distress sale.

Stage IV: Take-off In this stage the key problems are how to grow rapidly and how to finance that growth. One problem may be owner faces problem in delegating responsibility to others in a fast growing and increasingly complex enterprise, controlling the performance and managerial effectiveness. Other problem may be to satisfy the demand growth in cash and cash flow. There is needed to be competent to handle organization (divisionalized-usually in either sales or production) in a growing and complex business environment. In most cases, the business who are in success stage finds hard to achieve success in stage IV .they find problems in cash management, or finds the growth rate was too fast. They are unable to delegate effectively. Stage V: Resource Maturity The priority of the company in this stage is to get control over the financial success due to rapid growth .it also gets advantage of small size with flexibility and entrepreneurial spirit. The need of professional services arises. The company can upgrade its motive by using tools like budgets, strategic planning .all changes should not stifle its entrepreneurial qualities. (Churchil and Lewis, 2007) Notably, Storey (1994) and Burns and Harrison(1996) has acknowledged some criticisms. Most small business experiences little or no growth and therefore never reaches stage 3,4,5 described in the models. Gray (1993) also states that these models do not provide an explanation of why the firm was founded in the first place and what relation there is between the founding motivations and objectives and subsequent development. The models do not allow for a backward movement along the continuum or for the skipping of stages depending on the operating context of firm. The models do not permit firms to exhibit characteristics from one or more stage to become hybrids. The classifications of various stages do not reflect the operational and strategic realities and capabilities of firms in relation its chosen market and sector. Although highly critical, Gray (1993) acknowledges that if they are used with some selectivity, they are capable of shedding some lights on aspects of the small business growth. 2.1.1 Factors Related to Business Growth

2.2 Business Incubation: Tool for Business Growth


Business incubation models assume the philosophy that when there is guidance and support from fellow business experts and mentors, it creates positive environment for entrepreneurs to thrive their business. Like a real Incubator for hatching chickens from eggs, the business incubation houses can act as an incubator machine that provide essential environment to knowledge and resource constraint entrepreneurs for growth.. (Nepal, 2006). McAdam and Marlow, (2008) has emphasis that , durability and growth of new small firms overcoming problems can be ensured via business incubators as they provide managed business facilities , attract external investors and professional support advisors. Most researcher like Kuratko and LaFollette (1987); Lumpkin and Ireland (1988); Markley and McNamara (1995);Rice (1992); as cited in Hackett and Dilts, (2004b) assumes that 6

business incubation services can be appropriate tool for economic development which will help in job creation on one hand and less business failures on the other hand. Lalkaka (1997) explains the government from both developed and developing countries has recognizing the mechanism of business incubation as way to support the development of micro, small and medium enterprises. (Monkman, 2009) has reported that there are various motivations for establishing business incubation services around the world. It shows that the motivations have been: Creating local jobs Fostering entrepreneurial climate To Commercialize technology To diversify local economies To accelerate local industry growth To retain firms in community to encourage minority or women entrepreneurship To generate revenue To identify potential spin-ins or spin-outs To generate benefits for sponsors Revitalize distressed neighborhood To move people from welfare to work

2.3 Business Incubator


While defining Incubator ,a large number of detailed and in many ways similar definitions have been put forward. Hackett and Dilts, 2004b states that: A business incubator is a shared office space facility that seeks to provide its incubatees (i.e. portfolio- or client- or tenant-companies) with a strategic, value-adding intervention system (i.e. business incubation) of monitoring and business assistance.

Peters et al., 2004, p. 83 mentions generally an incubator can be viewed as a support environment for start-up and fledgling companies. Zimmerer and Scarborough, 2005 defines business incubator as, A business incubator is an organization that combines low-cost, flexible rental space with a multitude of support services for its small business residents. From various authors attention on business incubator, we can conclude that following components are the particular key elements; Shared office space which are for creating favorable condition to incubates A shared business support services Professional advice, mentoring and coaching Networking with external and internal business environment

Moreover (UKBI, 2010) focuses incubator as not only a mission statement ,shared office facility,infrastructure but is also a network of individuals and organization which includes incubator manager ,staff ,incubator management board,incubatees,industrial contact and service providers. It states that incubator can significantly reduce cost for start up to achieve growth by reducing the time span that it often takes. Norrman and Anna, 2008 has tries to identify the business incubator concept as different from science parks ,technology parks . They are distinguishable. They are generally designed for supporting mature firms . But business incubator are the ones who helps the ventures on early stages ,immature potential ideas to develop into viable companies.

2.4 Business Incubation


From the reviewed literature, Selection, Infrastructure, Business Support, Mediation ,Graduation seems to be the main incubator model components ( Hackett and Dilts, 2004b; Peters et al., 2004). 2.4.1 Selection Selection refers to decisions concerning which ventures to accept for entry and which to reject. (Hackett and Dilts, 2004) describes it as challege to differentiate firms which are promising and need business incubation.It requires good understanding of market and process of new business creation. (Holovnia et al., 2008) states that incubator should have clear vision for screeening of client .There should be early evaluation of company for prospective succesful business. It is worth while to carefully consider about selection criteria as it may have later on effect upon the resources and reputation as well. Campbell et al. (1985) as cited in Hackett and Dilts, 2004b emphasis the value of diagnosis of business needs and the selection and monitoring application of business service is important for provision of financing and access to incubation network as well. The effect can be seen ultimately in growth of business of tenant or incubatee as shown in figure 3
Figure 3- Campbell,Kendrick,and Samuelson framework(Campbell et al.,1985)

Norman and Anna (2008) have suggested appropriate selection criteria as two approaches: Idea focused approach and Entrepreneur-focus approach.

For an idea-focus approach, incubator managers should be able to evaluate the viability and feasibility of idea. Relevant technological knowledge and knowledge regarding product ,market and profit potential is a must. For entrepreneur-focus approach, it is required to evaluate the experiences, skills, characteristics and driving forces of entrepreneurs. The ability to judge personality as well as knowledge of more general business development is also sought. As discussed by Clarisse et al. (2005) cited in Norrman and Anna, (2008) other two approach: picking-the-winners approach and survival-of-the-fittest approach are other selection criteria. In the picking-the-winners approach, incubator managers try to identify a few potentially successful ventures . In the survival-of-the-fittest approach, incubator managers apply less rigid selection criteria, take on a larger number of firms and rely on markets to provide the selection processes that over time will separate winners from losers. Combination of these two types of approaches of the selection component gives four selection strategies., which are likely to result in very different incubator portfolios of incubatees. Survival of the fittest & idea. This strategy will gather a large no of idea owners with immature ideas which may be from wide range of fields. Survival-of-the-fittest & entrepreneur. This strategy will collect diverse ventures consisting of entrepreneurs/teams with strong driving forces. Picking-the-winners & idea. This strategy will select highly screened ideas mostly within a narrow technological area and are found commonly started from institutions. Picking-the-winners & entrepreneur. This strategy will gather handpicked and well evaluated entrepreneurs and generally the idea is linked with research.

2.4.2 Infrastructure The infrastructure covers all the business premises, office facilities and administrative services that an Incubator provides. Most incubators seems to supply or provide generally same set of administrative services including office space, amenities, equipments as well as office services like reception and clerical. (Rice, 2002); (Lalkaka, 1997) 2.4.5 Graduation Graduation is related to exit policies, i.e. decisions concerning under what circumstances incubatees should leave the incubator. Most incubators have formal exit rules requiring incubatees to leave the incubator after 3-5 years selection. Monkman (2009) mentions that Graduation policies have become more sophisticated over the years. Graduation polices have been based on business-related benchmarks rather than time limits. Clients achieving milestones, outgrowing space, spending maximum time etc have been some of factors guiding graduation policies.

2.5 Measure of Incubator Success


Framework developed by National Business Framework (NBIF) recognizes that there is no single model or template for running and structuring of business incubation .The combination of internal and external factors to each business incubation service are different so it is

problem to have common one size fits all Framework for benchmarking of business incubation environments. (UKBI, 2010) Previous research has been found to focus primarily on identifying suitable criteria and indicators to measure outcomes. However , the fact is that no two incubators are alike (Allen and McCluskey, 1990, p. 64). Incubators articulate objectives differently depending upon their sponsors interests (Mian, 1996b, p. 194) or at least make different priorities within the same basic goals, and that goals vary from one organization to another. Incubator performance can be defined as the extent to which incubator outcomes correspond to incubator goals (Norrman and Anna, 2008). According to (Hackett and Dilts, 2004b),Incubator goal may be set on following basis: The incubators primary financial sponsorship Public/non-profit/university/privately Whether incubatees are spin-offs or start-ups- spin-off/ start-up The business focus of the incubatees - Product development/Manufacturing/Mixeduse The business focus of the incubator Property Development/Business Assistant.

The Indicator of measure of success may be different for different goals .for example ,the no of employees may be good indicator if the goal is to create jobs while growth in sales may be indicator for measuring success of incubator whose goal is to commercialize new idea. The fact is that the incubator most of time has multiple stake holders with different interests and goal ,so incubator may have multiple goals according to stakeholders.(OECD, 1997). Campbell and Allen (1987) has set milestones for measures of incubator success as creation of a strong and responsive business consultation network, participation of financial institutions in capitalization of incubatees, and trade relation development of incubatees.

2.6 Measures of Incubatee success.


One of simple measure of incubatee success is graduation from incubator with developed sustainable business setup. The growth and development seen also can be applied as measure of incubatee success. The growth measure may include increase no of jobs ,increase in sales over time,etc. one measure concern shown is while examining the incubatee survival rate ,it may no t be meaning full to compare with non incubated ventures . the use of selection criteria over incubatee result in selection bias.(Hackett and Dilts, 2004b)

2.7 Business Incubation Framework for Research


This literature review has identified selection, infrastructure, business support, mediation and graduation (Hackett and Dilts, 2004b) as main incubator model components for business incubation. . The incubators have objective and goals depending upon the sponsors and stakeholders interest. The ultimate goal of business incubator is to help the start ups to achieve its growth and result in more start-ups with fewer business failures. This support can be very crucial for start up and growing a new business. The performance and success of 10

different incubators is related to their incubator models, i.e. How they organize and manage the incubation process .however, the success of incubator tenants is not only dependent on the nature of these services, but also on how they are supplied. This research aims to focus on evaluating the selection process , infrastructure services provided, business support provided, mediation and networking provided and graduation policy of Business incubation Program(BIP) operated by Government of Nepal. The research also aims to examine and identify the problems of growth facing by new start up firms in Nepal. Business incubation Program (BIP) is the only non profit-mixed type Business incubator in Nepal which is nonprofits and run under lead role of Department of cottage industries.
Figure 4 - Business Incubation Framework for Research (incorporating Churchil and Lewis Growth Stage, 1983

Above literature review can be concluded in following notes and Business incubation framework (Fig-4) will guide for methodology and finding for this research . In different growth stages of a firm, there are several problems of growth which is developed as attributes of owner-manager and resources. General management, operations/production, finance and marketing are the known common growth constraints. Various authors have endorsed emphasis that overcoming of these problems can be ensured via business incubator as they provide managed business infrastructure, business support, and mediation and networking. Incubator can be measured as successful according to measured outcome .However the criteria and indicator may depend upon goal and objectives, incubator models. The criteria may be creation of job, growth in sales of incubatee ,creation of business network. Similarly ,the criteria like graduation from incubation, development of sustainable business structure, increase in number of jobs or 11

sales over time, product innovation, and incubator manager-incubatee relationship are the measure of incubatees success.

Chapter 3. Methodology
3.1 Research Philosophy
With purpose of finding a solution or answer to a specific problem ,business research is conducted. It is organized ,data-based ,critical and does a scientific inquiry or investigation of problem. (Sekaran, 2003). Even the purpose is answering a specific problem; it is a development of new knowledge so research philosophy is associated with development of knowledge and nature of that knowledge There are some important assumptions about the way of viewing world which research philosophy adopts. These assumptions govern the research strategies and methods. There has to be some practical considerations of philosophy as well. the major influencing factor is the relationship between knowledge and process of development of knowledge (Saunders, Lewis and Thornhill, 2007) The major ways of thinking about research philosophy are as follows: Epistemology Ontology Axiology Epistemology

i.Epistemology Epistemology is related with what is considered acceptable knowledge in field of study. The researcher who is more interested with finding facts is likely to have different approach and view on the way a research is to be performed than with the researcher who is interested with knowing feeling and attitudes. (Saunders, Lewis and Thornhill, 2007) ii.Ontology Ontology. Is more related with nature of reality. The questions of assumptions researches make about the way world operates and the commitment held to specific opinion. iii. Axiology Axiology studies about the judgments about values. Heron(1996) (as cited in Saunders, Lewis and Thornhill, 2007) states that researcher can show axiological skill by being

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compentent to demonstrate their values as foundation of making judgemnt aobut what research is being conductio and how they are doing it. There are mainly three branches of research philosophies in practice; Positivism Realism Phenomenology

3.1.1 Positivism This approach is based on philosophy of science and the approach is called as positivist approach. Robson(1993)as cited in (Saunders, Lewis and Thornhill, 1997)has listed five sequential stages through which positivist research goes: Deducting a hypothesis from theory Expressing the hypothesis in operational terms Testing operational hypothesis Examining the specific outcome of the inquiry. It will either tend to confirm theory or indicate the need for modification. If necessary ,modifying the theory in the light of findings. science has listed

Easterby-Smith et al.(1991) as cited in Saunders, Lewis and Thornhill, 1997 eight features of positivism:

Independence- The viewer is independent of what is being seen. Value-freedom-.the objective criteria are more deciding factor rather than human beliefs and intrests for choice of ways of studying . Casuality-.the motive of social science should be to find out the casual explanation and basic laws that explain regularites in human behaviour. Hypothetico-deductive - The final outcome of observations will point out truth or falsity of hypothesis. Operationalization - The concepts are needed to be worked in such a way that enables the facts to be measured quantitatively. Reductionism .The problems can be well understood and can have better view if it is reduced to simple possible elements. Generalization- The regularities in human social behavior can be generalized if sufficient size of sample is selected. Cross-sectional analysis- By making comparisons of differences across the samples ,regularities in human social behavior can be easily identified.

Positivism research philosophy is not quite applicable for my research as my research focuses on the evaluation of which cannot be scientifically proved as this philosophy supports . My research deals with tangible and intangible services, policies, problems facing, measure of success which are hard to prove by scientific basis. So, I reject this research philosophy. 13

3.1.2 Realism Realism is another epistemological position which relates to scientific enquiry. Realism is branch of epistemology which is similar to positivism in that it assumes a scientific approach to the development of knowledge. This assumption underpins the collection of data and the understanding of those data and the understanding of those data. The meaning becomes clearer when two forms of realism are contrasted. (Saunders, Lewis and Thornhill, 2007) Direct realism and Critical realism are two parts of Realism. Critical realist views that the experiences we have are sensations, and points out that our senses often deceive us. The direct realist on the other hand views as illusion; they are actually due to insufficient information. In order to be able to understand what is going on in social world, the social structures are to be understood which created the phenomena. Researcher can find what is not seen through practical and theoretical processes of social sciences. Dobson.2002 as cited in Saunders, Lewis and Thornhill, 2007 further clears the critcal realists position that knowledge of reality is a result of social conditioning and cannot be understood independently of the social actors involved in the knowledge derivation process.Another important point is direct realist perspective would suggest the world is relatively unchanging: that it operates in the business context. The critical realist on the other hand,would recognize the importance of mulit-level study.Each of these levels has the capacity to change the researchers understanding of that which is being studied (Saunders, Lewis and Thornhill, 2007). My research is to explore and evaluate on business incubation and business growth which comprises business services provided, problems of growth faced, measuring perceived effect and success. Direct realism and critical realism approach will help me to understand theoretical and real understanding on the topic deeper. level .Both philosophy are of important for my research. so I prefer this philosophy.

3.1.3 Phenomenology Phenomenology is an approach which is based on the way people experience social phenomenon in the world they live. (Saunders, Lewis and Thornhill, 1997). Phenomenology is characterized by a focus on the meaning that research subjects attach to social phenomena; an attempt by the researcher to understand what is happening and why it is happening. Easterby-smith et al., (1991) as cited in Saunders, Lewis and Thornhill, 1997 points out that researchers in this tradition are more likely to work with qualitative data and use a variety of methods to collect these data in order to establish different views of phenomenon.phenomenology approach is good at understanding social processes however researcher may have to live with the uncertainity that clear patterns may not emerge. My research aims is to have insight and evaluate a business incubation service .This also has to deal with connection to society, human behavior and experience for perfect understanding to the topic. The information to be derived from understanding the topic are fact basis and judgment basis as well. This approach will help me in some part to assess perceived effect of

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incubation but not as a whole .so I reject this approach as my primary approach for research.

3.2 Purpose of Research


Robson, (1993) as cited in Saunders, Lewis and Thornhill, 1997 has classified the purpose of research as exploratory ,descriptive and explanatory.

3.3 Research Strategy


The Research Strategy is a general plan of how to answer research question set. It will contain clear objectives, derived from research question; specify the source from which data collection is intended; consider the constraints which will be inevitable .crucially, it should reflect the fact for employing particular strategy. (Saunders, Lewis and Thornhill, 1997).Each strategy can be used for exploratory , descriptive and explanatory research. Some of these clearly belong to the deductive approach, others to the inductive approach. (Yin 2003 as cited in Saunders, Lewis and Thornhill, 2007).Robson(1993) lists the three traditional research strategies as: Experiment; Survey; Case Study;

3.3.1 Experiment Experiment is a research which owes much to the natural science. it is also featured strongly for social science research ,psychology as well (Saunders, Lewis and Thornhill, 1997). In experiment, the link between variables can be studied, and the magnitude of effect of one independent variable can be studied upon another dependent variable. (Hakim 2000).Experiment typically involves: Definition of a theoretical hypothesis; Selection of samples of individuals Allocation of samples to different experiments; Introduction of planned change on variables; Measurement on a small number of variables; Control of variables.

3.3.2 Survey Survey is tends to be used for exploratory and descriptive research. This strategy is common and popular strategy in business and management study. It is commonly used to answer who, what, where, how much and how many questions.The data is collected by using a questionnaire. The data collected are standardized and easily comparable. The data collected are quantitative data and can be analysis quantitatively using descriptive statistics.In addition ,the data collected can also be used to give suggestion about possible reasons for relationships between variables . However , There are other data collection techniques as well for survey strategy. (Saunders, Lewis and Thornhill, 2007). 15

3.3.3 Case Study Case study is a strategy for doing research which involves an empirical investigation of particular contemporary phenomenon within its real life context using multiple source of evidence. Robson (2002:178).The case study strategy gives use good understanding of the context of research and processes that are going on.( Morris and Wood 1991). The case study strategy also can give answers to the what, how and why questions so it is also a common approach for research strategy. Case study strategy is most often used in explanatory and exploratory research. The data collection techniques like interviews ,observation, documentary analysis, questionnaire etc and are likely to be used in combination. (Saunders, Lewis and Thornhill, 2007). In case study strategy it is also likely to need to use and triangulate multiple sources of data. My research aim is to evaluate business incubation services. The theoretical framework for business incubation will be studied with help of a business incubation service provider .the problems and real challenges that business incubator faces would be under consideration for deeper understanding. A study on a real business incubator in practice will help me to observe and analyze the phenomenon and real perspective of business incubation. So, for my research I have chosen a case study strategy where questionnaire will be supplied for data collection to both incubator and incubatees.

3.4 Research Conduct


For any research data collection is one of important phase.The data which we collect will help to support our view for finding of research.The ways of collecting data are; Primary data collection Secondary data collection

3.4.1 Primary Data Collection The new data which are completely new are primary data. The purpose of data is to answer the research questions or meet objectives of research.The ways to collect primary data are observation, semi structured interviews, in-depth interviews and questionnaires.The nature and area of research governs the selection of ways to collect data (Saunders, Lewis and Thornhill, 1997) Interview The discussion with a view of a purpose between two or more people is an interview (Kahn and Cannell, 1957, cited on Saunders, Lewis and Thornhill, 1997). The interview helps to collect a reliable data which are relevant to research questions and obtain the objectives.In structured interview ,the interview is based on predetermined and identical set of questions to sample interviewees.It is generally formal and standardized .the interviewer reads questions and answers from interviewee are recorded.

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In such interview, the respondents should not feel any partiality even in the tone of voice. Even voice inflection of interviewer may be cause of bias responses (Barath and Cannell, 1976, Benson, 1946).

The non-standardized interviews are semi-structured and unstructured interviews. The questions vary and have different themes in interview.It is generally suitable for omitting some questions for particular interview owing to the context and circumstances.The orders of questions, way of conversations can be changed in semi-structured interview. There is also chance of adding new question according to necessity (Saunders, Lewis and Thornhill, 1997) The unstructured interview doesnt have specific questions and time length and they are totally informal.This method is useful for exploring the depth of a general area of topic of interest so it is also called as in-depth interview. While using this method even research doesnt have pre-determined list of questions to ask but they have to be clear of area of topic to explore (Saunders, Lewis and Thornhill, 1997) Questionnaires One of best method to collect data is questionnaire method . There is room for being confident on same interpretation by respondents as it has standardized questions. (Robson, 1993, cited on Saunders, Lewis and Thornhill, 1997). Self administered questionnaires are one of best ways to collect data from respondents as they feel free to complete at their convenience.Questionnaires are also cost effective than face to face interview as there is no cost like travel and time .(Bachrack and Scoble, 1967). The self-administered questionnaires are sent by post and after it is completed by respondent, they return back by post or can also be delivered by hand and collected later at later time.The problem with mail survey is that there is low response rate which reduce accuracy in statistical analysis. There is also doubt that the returned questionnaire is same person or not. The interview administered questions on the other hand can be recorded either by using phone or structured interviews which can be taken by face to face interview with respondent.The physical presences will increase the reliability of data collected as physical presence dilutes the dilemma of whether the respondent is same person or not. however, there is also possibility that in presence of interviewer ,some respondent may response to please (Dillman, 1978, cited on Saunders, Lewis and Thornhill, 1997)

3.4.2 Secondary Data Collection The secondary data are the data which are collected by other for some purposes. (Hakim, 1982, cited on Saunders, Lewis and Thornhill, 1997)

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These data can be useful to answer the questions and research topic, so these data are also used by many researchers. The data may be in published or may be raw. It includes both quantitative and qualitative data. One source is Documentary which can be records, information in websites, articles, journals publications and the books published with information about organizations. Bryman (1989) cited on Saunders, Lewis and Thornhill, 1997).Other secondary data are non-written data like taped interviews, recorded audio and videos are also authentic source for research.The survey data which are collected by organizations ,government like consensus of population are also reliable data for research

3.5 Methodology in practice


The theoretical aspect of methodology is the foundation for any research which helps researchers to reach conclusion of the research objective and get the solution of research problem. There are various things in practice while following the steps of methodology for the validity of data. There has to be test for data collection method for reliability and authenticity of collected data.

Pilot Testing Pilot testing includes steps of checking the questionnaire with experts or friends before the questionnaires is handed or supplied to respondent .it is a vital step before the data collection takes place. This pilot testing helps to confirm unambiguous and refined questionnaire which are without flaws so that respondents would be easily understand questions and answers the questions easily (Saunders, Lewis and Thornhill, 1997) In my research, I have chosen questionnaires as way of collecting data, so pilot test was done for validity and reliability of data collected. The pilot test was done with my supervisor and it was checked and approved. In addition ,suggestions were also taken from friends by distributing to them for opinion. Question of reliability of finding My questionnaires include two separate sets of questions each for key-informant from incubator and participant incubatee which are related from sections of my literature review. In my understanding, these questions on the main subject matters are strong enough to give the answer to reach the objectives and finding of my research. After pilot testing, the questionnaires are handed to key-informant from incubator and participant incubatee by meeting in person . I have used Interview administered questionnaires as collecting primary data. My data collector assistant from made contact to incubator team and incubatee team. A prior written 18

acknowledgment letter was presented. An appointment was fixed at convenient location of respondent at convenient time before meeting and data was collected in meeting. The physical presence of interviewer and respondents confirms the respondent and other points, shared experiences and related notes can also be taken at the same time which is helpful for analysis of data. Thus, interview administered questionnaires helped in increasing the reliability on the collected data. Choosing Samples I have used Snowball Sampling for selecting key-informants from incubator which is choosing sample through contact or network. Firstly we need to contact with one or two members and the same members later identify further members (Saunders, Lewis and Thornhill, 1997). However, in this method, there may be chance that the respondent is likely to suggest the other respondent who is in touch with them or like them which may lead to biasness. (Lee 1993 cited in Saunders, Lewis and Thornhill, 2007). For participant

incubatee selection,. All of them were approached due to aim of research as sample was low in number i.e. 16.

Theoretical and practical both aspects of Methodology have equal importance for research papers. Acknowledging this fact, I have gone through careful planning to all aspects of research methodology. For reliable and authentic data ,the questionnaires were pilot tested. This blend of both aspects of methodology will help me to get better finding of my research .

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Chapter 4: Findings
4.1 Business Incubation program (BIP)
Business Incubation Program is a non-profit making organization under the ownership of government but strictly operated as a private organization with an autonomous management set-up. The BIP, Kathmandu, is located in the premises of DoCSI, within an available builtup space of over 6,000 sq. ft. With a mission of being a center of excellence. It is primarily focusing on the provision of proactive support and guidance tailor made for its clients through a range of in-house as well networked services such as subsidized flexible accommodation, logistics, testing and lab facilities, market and finance linkages and human resources who can mentor and guide clients to successfully transform start-up companies to a fast growing enterprise. It will also be a dynamic process for the production of future generation of fast growing innovative enterprises that will be able to stand up with the best and compete in the global market (Incubator Initiative Planning Grant, 2006). Government of Nepal has formed a Business Incubation Board having members from different industrial, science & technology, professional and experts from different sectors to run and guide this program at top most level. Current Board of Directors of this program is as follows:

Table 1- Business Incubation Program Board Members,source (BIP, 2007)

Business Incubation Program Board Members Name of organizations Director General, Department of Cottage & Small Industries (DoCSI) Federation of Nepal Chamber of Commerce & Industry (FNCCI) Kathmandu University, School of Management, (KUSoM) National Association of Science & Technology (NAST) Position Chairman Member Member Member

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Information Technology Professional Forum (ITPF) Ministry of Environment, Science & Technology (MoEST) Director, Department of Cottage & Small Industry (DoCSI)

Member Member MemberSecretary

The work of management team is supervised by one of Director level personnel as Program Chief appointed by DoCSI. Currently, the DoCSI is funding this program from its regular annual program budget. Program Chief and Management team are liable to present progress reports to BIP board members.

4.2 Summary of Data Collection Experience


Two set of questionnaire were prepared to be filled by pivot management persons from Business incubator and another to be filled by incubatees. An acknowledgment letter for data collection was provided to Business Incubation program .Business incubation program helped to make contact with incubatees for data collection. As the research subject was in different country, Nepal and data collection method was selected as face to face questionnaire response collection. Researcher was unable to be physically involved in data collection due to being in United Kingdom. So, A data collection assistant was carefully selected to help in data collection. The data collection assistant was a graduate of rural development and was well-informed about the research methodology. The questionnaires are in English and the respondents are native Nepali language speakers. So, The Data collection assistant translated each English medium question into Nepalese while performing the questionnaire session and the answers was again noted down in English language. A daily communication was set between researcher in United Kingdom and data collection assistant in Nepal to coordinate and facilitate data collection process.

To collect data from incubator management side, 3 key informant was selected who were involved directly into business incubation process. Altogether there were 16 incubatees with whom attempts were made to contact. The number of participating incubatees was 12. 4 of them were out of contact (2 of them were graduated incubatees and were not in contact with BIP recently. Remaining 2 incubatees were out of Kathmandu due to personal reasons.) All the issues, suggestions, comments and various personal experiences were also noted down during the filling of questionnaire.

4.3 Findings
In 2 sets of questionnaires for incubator and incubatees , the questions and statements were on 4 point scale. The participants were allowed to rate them . The participants from business incubator and incubatees were 3 and 12 respectively. So, number of key informant for Incubator (N) was 3 and number of participant ( N) was 12 for incubatees.

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For convenience of analysis ,Weighted Factor Analysis was used for each set of questions. The Weighted factor was assigned to each choice in question .lowest weight was assigned to least agreeing choice .Similarly, highest weight was assigned to most agreeing choice. All the questions were with 4 point scale so, Each choices were assigned as 1,2,3,4 weighted factor with starting from value of 1 with least agreeing choice toward most agreeing choice with value of 4.
(For example-Poor-1,Average-2,Good-3,Excellent-4)

Each question was then multiplied with Frequency of response which gave a minimum and maximum range. The response range hence was dependent on value of N (no of respondent). For response range of Incubator ,minimum was 3 and maximum was 12 as N=3. Similarly minimum response range for incubatees was 12 and maximum was 48 as N=12.

For Some choices of questions ,some incubatees did not respond as they had not deal with such business support, mediation service i.e. Number of response N was less than 12, .but N=12 was taken as number of respondent for all of graphical representation. Therefore The weighted factor was given as 2.5 (1<2.5< 4) for those unanswered responses and weighted factor analysis was carried on. 4.3.1 Incubatee Background Information a. Age Figure 5-Age of Incubatees

Age of Incubatees
13%

N=16
18-34 35-50 51-above

25%

62%

The total number of Incubatees under business incubation are 16 till date.5 of them were incubated as first batch in 2007 since the program started and are graduated from Business Incubation Program . 5 of them were under business incubation since 2008 and remaining 6 were under business incubation since 2009. In Nepal, the population of 15-64 age groups is 61.1% (CBS, Nepal 2011). High percentage of 18-34 age groups in business incubation was encouraging.

b. Gender
Figure 6-Gender ratio

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Gender ratio
N=16
19% 81% Male Female

The number of women in business was relatively less .There were only 3 females among total number of Incubatees. In Nepal, Women participation is generally low in all business activities where majority of women are active in house-hold activities. Women are always encouraged to actively participated in all business activities by government and nongovernment organizations. c.Education background
Figure 7-Educational background

Educational background
12% 38% 50%

N= 16
Under High School High school Graduate

The number of incubatee with high school education was found to be 8. The number of incubatee with graduate level of education was found to be 6 and 2 incubatee were with under high school level of education.

4.3.2 Selection Policy Selection of clients was based on strict criteria that are in alignment with the available resources and demand reasonable cost for development. After passing through a broad selection criteria, BIP Nepal provided a pre-incubation course for developing business plan of its incubatees. Between the time of business plan development, management team assessed their needs and prepared a work plans for serving them according to their needs. BIP Nepal support both type of incubates i.e. Virtual and In-house.

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Figure 8-Importance of Selection criteria as perceived by Incubator

Selection criteria as perceived by Incubator


Expected earning/expenditure Plans to implement Use of information technology Technical knowledge Creativity of idea Stage of idea/business Business proposal Family Background

Selection Criteria

5.25

7.5

9.75

12

Response Range (N=3)


Note-weighted factor: doesnt matter-1,moderate-2,Important-3,very important-

Figure 9-Importance of Selection criteria as perceived by Incubator

The response on importance of factors for selection gave knowledge on factors which were thought more important than others. Some factors were agreed more important than others. Business proposal, stage of idea, plans to implement and market potential was highly agreed upon as important .However, available resources and cost, and range of desired support was also seen as important. Family background, type of firm, employment history was found to be assumed less important. There was also suggestion by Key informant on basis of day to day activities that criteria of selection should also focus in commitment and willing to pay additional services.

4.3.3 Infrastructure The views about majority of infrastructure by incubatees were also nearly same as rated by key-informants from incubator but for fax. Phone and computer, it wasnt same. The incubatees perceived quality about fax, phone, and computer was also as of other infrastructure. the incubatees were of less need of these infrastructure so even these were available, these were used less .In, Nepal, small business do not use fax, and computer much due to low penetration of technology into business. The incubatees who were into production industries showed dissatisfaction over R& D facilities and stated that improvement in this particular infrastructure was vital and would help in their businesses . 4.3.4 Business support

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Figure 10-Perceived Quality of business Support by Incubator

Perceived Quality of Business Support by Incubator


Business registration services Secretarial services Export assistance Accounting and taxation Entrepreneurial development Legal issues HR management Marketing management

Business services

Financial management
Leadership training and coaching

5.25

7.5

9.75

12

Response range (N=3)


Note- weighted factor: Poor-1,Average-2,Good-3,Excellent-4

Figure 11-Perceived Quality of Business Support by Incubatees

Perceived Quality of Business Support by Incubatees


Business registration services

Secretarial services
Export assistance Accounting and taxation

Entrepreneurial development
Legal issues HR management Marketing management Financial management Leadership training and coaching

Business services

12

21

30

39

48

Response range (N=12)


Note- weighted factor: Poor-1,Average-2,Good-3,Excellent-4

The leadership training, financial management, marketing management, Accounting and taxation, business registration services were provided to all where as other business services were provided according to individual need. The key informant from business incubator tends to agree that the quality of business services was of average quality. HR management ,legal issues, Export assistance, and Secretarial services were found to be provided according to individual need. The business support was found to be reactive and episodic. most of time entrepreneur requested help dealing with crisis or problem. It was less continual and proactive as there was less intense intervention by incubator manager. As most of incubatees were startup with sole enterprises, export assistance, HR management was felt less important by incubatees. Some of incubatees were more satisfied for business support regarding Branding and patent. 25

An incubatee view - Incubation is good and would encourage many more entrepreneurs if it was publicized a little more. I am satisfied that I got various trainings/exposures. I also got technical support as incubation team arranged for an expert's visit to my field.

4.3.5 Mediation Incubatees Views on Mediation Statements


Mediation has helped incubatees obtain legitimacy and social acceptance. Mediation has helped increase the visibility, credibility and understandability of incubates in the eyes of external actors. Mediation has been able to influence changes in regulations and laws. Mediation has helped incubatee to understand and interpret regulations and law .

Mediation

12

21

30

39

48

Response range
Note: Weighted factor: Strongly Disagree-1, Disagree-2, Agree-3, Strongly Agree-4

The key informants from incubator and participant incubatees were seen agreeing on mediation statements on questionnaire .Even both side agreed that the mediation was not at desirable level. But it has helped morally being firms under Business incubation. As a direct effect of mediation, Incubatees has experienced they got faster services when approached to external companies, government offices for administrative and registration works.
An Incubatee view- Incubation has made my work faster and saved me cost . One example I can take of Registration of company. it would have taken me around Nepalese Rupees 6000 to register company. But since incubation office mediated, i could do the registration with the mandatory sum of 1000 as the communication was done between BIP and government authority for business registration. It also took me only 3 hours to do so. Otherwise, it would take 2-3 days minimum.

Since Business incubation is a new concept it has not been able to influence change in regulation and laws .Recently, due to approach and mediation from Business Incubation program, Business incubation has been in priority of New Industrial Policy of Nepal, 2010. 4.3.6 Graduation Criteria The graduation policy was found to be flexible. After a certain period ,with mutual agreement between incubator and incubatee ,the firm was graduated.

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Figure 12-Important criteria for graduation as Perceived by Incubatees

Important criteria as Perceived by Incubatees


Trading as independent business Time under incubation Profitability Sales turnover

Graduation criteria

12

21

30

39

48

Response Range N=(12)


Note- Weighted factor: Not at all-1, Less Important-2, Important-3, Very Important-4

Trading as independent business was perceived as an important factor to graduate by both key-informant from incubator and participants from incubatees. There seemed to be contrast in view on Time under incubation as an important factor. The response from incubator on Time under incubation was seemed perceived highly while incubates preferred it as low importance. The incubatees were ready to be under business incubation for longer period if it gives positive result in their growth.
An Incubatee View- I feel that I could graduate from incubation after I am able to establish a brand name for my produced bag products and gain some recognition in the market for it .

The key-informant from incubator and participant incubatees were seen much agreed on limited market information systems and research and Limited awareness and capacity for marketing as marketing resources problems faced in small business operation in Nepal. Both key-informants from incubator and participant incubatees perceived day to day survival focus as less important problem for growth. Growth in business is sought by most of business operating in Nepal. Other local problem faced by some incubatees were tax imposed by local authorities for marketing and promotion campaign, display board /hoarding board which added extra cost to their products.

c. Operational/Production problems

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Figure 13-operational/production problems perceived by Incubator

Perceived by Incubator
-Inadequate educated workforce -Poor work ethics

-Inadequate supply of infrastructure services


-Limited knowledge in manufacturing and distribution process

Operational/production problems 3 5.25 7.5 9.75 12

Response Range (N=3)


Note: Weighted factor: Strongly Disagree-1, Disagree-2, Agree-3, Strongly Agree-4

d. General management Problems


Figure 14-General management Problem perceived by Incubator

Perceived by Incubator
-Lack of technological sophistication -Corruption -Policy instability -Ineffective government bureaucracy -Government stability -Lack of government support -Crime and theft

General management Problem

5.25

7.5

9.75

12

Response Rate (N=3)


Note: Weighted factor: Strongly Disagree-1, Disagree-2, Agree-3, Strongly Agree-4

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Figure 15-General management Problem perceived by Incubatees

Perceived by Incubatees
-Lack of technological sophistication -Corruption -Policy instability -Ineffective government bureaucracy -Government stability -Lack of government support -Crime and theft

General management

12

21

30

39

48

Response Rate (N=12)


Note: Weighted factor: Strongly Disagree-1, Disagree-2, Agree-3, Strongly Agree-4

The key-informant from incubator and participant incubatees has pointed out Lack of technological sophistication, Policy instability, and Ineffective government bureaucracy as major general problems of growth for new start-up in Nepal. Corruption is also seen as big problem than crime and theft . Other general social problems that incubatees faced were found to be forceful charity, political labor union disrupting work, and force full charity by local mafia, etc. e. Owner Related Problems
Figure 16 -Owner related problems perceived by Incubator

Perceived by Incubator
-Family history

-Gender
-Lack of trainings -Lack of management abilities -Lack of motivation for growth -Lack of entrepreneurial culture -Resistance to modern management practice

Owner Related Problems

5.25

7.5

9.75

12

Response Range (N=3)


Note: Weighted factor: Strongly Disagree-1, Disagree-2, Agree-3, Strongly Agree-4

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Figure 17-Owner related problems perceived by Incubatees

Perceived by Incubatees
-Family history -Gender -Lack of trainings -Lack of management abilities -Lack of motivation for growth -Lack of entrepreneurial culture -Resistance to modern management practice

Owner Related Problems

12

21

30

39

48

Response Range (N=12)


Note: Weighted factor: Strongly Disagree-1, Disagree-2, Agree-3, Strongly Agree-4

Lack of entrepreneurial culture and resistance to modern management were found to be agreed by both key informants from incubator and participant incubatees. Lack of training, lack of management abilities and lack of motivation growth were perceived more by participant incubatees as owner related problems. The incubatees felt that these owner related problems were also problems for growth which can be overcome by training and support to interested ones. Gender and family history wasnt perceived as much bigger problem of growth by both key informants from incubator and participant incubatees.

4.3.8 Perceived Effect of Business Incubation on Incubatees

4.3.10 Measure of Success of Incubatee firm as perceived by Incubatees

Chapter 5: Discussion and limitations


5.1 Discussion 5.2 Limitations
The study had time constraint as it was to be conducted for 4 months. The literature review can point out other issues of Business incubation which were not discussed and was discarded. One of important limitation this research has is it doesnt discuss about the role of business incubation manager .various authors Holovnia et al., (2008);Jim Robbins(2002)

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have highlighted the effect of experience and capabilites of manager in Business incubation Process. This study has limted to business incubation service by Government of Nepal. It is not able to raise the enterprise development issues and efforts running in nepal from private initative or by non governmental organisation. The activities for enterprenurship development from them is scattared and unorganised but not negligible to ignore for Nepal. Another limitation in this research is that this research doesnt discuss about financial sustainability of business incubation center itself. The case study Business Incubation Center was government funded and the research was focused in evaluating the services provided and exploring the topic. The strategies that business incubation center incorporates for being financial sustainable have effects on business incubation process and a different framework or working model may arise as various authors like Richards 2002 has stated.

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Chapter 6: Conclusion and Recommendation


6.1 Conclusion
This research study leads to us following conclusion;

6.2 Reflections
If I were to do this research again, I would approach the research in some different ways. I feel the study of evaluation of business incubation services could also be done with focusing in supply and demand of business incubation services. The data collection could be more refined with use of different sets of questionnaires for graduated and under-incubation incubatees as there were seen some mixed responses. Some questions were seen less relevant to incubatees who were still under incubation. I would approach the primary respondents early .i learned to consider the factors which can delay the research process. Even the social factor like celebration of festival in between the data collection period interrupted the data collection process. This early consideration would have increased my sample size. Conducting a research staying in United Kingdom and exploring over the case study over another country, Nepal initially had some sort of lack of confidence and fear for not being able to grasp the real scenario. There was always fear that the questionnaire may not be well perceived by the respondents. So it was pilot tested before it was handed to respondents. Personally, the research study made me learn about the procedure of doing research. I learned the skill for forward plan and proposal planning also. I learned to coordinate with organization. I learned the skill for preparing an original piece of work on a defined and relevant topic.

6.3 Recommendations

6.4 Contribution
This research is the first research study over the Business Incubation Program (BIP). This study can help any interested individuals or organization to find about progress of business incubation scenario in Nepal. The stakeholders of Business Incubation Program can use this study to find about business incubation services provided. This study can also help researchers interested to find about initiatives in entrepreneurial development environment in Nepal.

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Bibliography
Beaver, G. (2002) Small Business,Entrepreneurship and Enterprise Development, 1st edition, Pearson Education Limited. Bergek, A. and Norrman, C. (2008) 'Incubator best practice: A framework', Technovation, vol. 28, no. 1-2, January-February, pp. 20-28. Burns, P. (2001) Entreprenurship and small business, 2nd edition, Palgrave macmillan.

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Churchil, N.C. and Lewis, V.L. (2007) The Five Stages of Small Business Growth, 28 Aug, [Online], Available: http://harvardbusinessonline.hbsp.harvard.edu/hbs.?articleID=83301&ml_action=getarticle&print=true [25 Jun 2011]. Department of Cottage and Small Industries, G.o.N. (2010), [Online], Available: http://incubation.gov.np/ [1 november 2010]. Hackett, S.M. and Dilts, D.M. (2004a) ' A real options-driven theory of business incubation', Journal of Technology Transfer, vol. 29, no. 1, pp. 41-54. Hackett, S.M. and Dilts, D.M. (2004b) 'A Systematic Review of Business Incubation Research', Journal of Technology Transfer, no. 29, pp. 55-82. Hannon, P.D. (2003) 'A conceptual development framework for management learning in the UK incubator sector', Education + Training, vol. 45, no. 8/9, pp. 449-460. Holovnia, N., Lanciani, K., Moran, Y. and Rosales, M. (2008) Recommendations for a Creative Business Incubator for the City of Worcester, [Online], Available: http://www.wpi.edu/Pubs/E-project/Available/E-project-122008202704/unrestricted/Recommendations_for_a_Creative_Business_Incubator_for_the_City_o f_Worcester.pdf [15 Nov 2010]. kuratko, d.F. and Hodgetts, R.M. (2004) 'Entrepreneurship:Theory,process,and practice' thomson south-western. Lalkaka, R. (1997) 'Lessons from International Experience for the Promotion of Business Incubation Systems in Emerging Economies', UNIDO.Discussion Paper No.3. McAdam, M. and Marlow, S. (2008) 'A preliminary investigation into networking activities within the university incubator', International Journal of Entrepreneurial Behaviour & Research , vol. 14, no. 4, pp. 219-241. Monkman, D. (2000) Impact of Business Incubation in the US Lessons for Developing Countries, [Online], Available: www.infodev.org/en/Document.896.pdf [10 Oct 2010]. Monkman, D. (2009) David Monkman - NBIA for infoDev, [Online], Available: www.infodev.org/en/Document.896.pdf [24 Aug 2011]. Monkman, D. (2010) Business Incubators and Their Role in Job Creation, [Online], Available: http://www.house.gov/smbiz/hearings/hearing-3-17-10-businessincubators/Monkman.pdf [29 Oct 2010]. Nepal, C. (2006) 'Economic Policy Network-Strategy for Promoting Business Incubation Centers in Nepal', in Draft Policy Paper 21, kathmandu: Asian Development Bank. Nepal, C. and Karki, B.R. (2005) National Workshop on Sub-national Innovation Systems and Technology Capacity Building, [Online], Available: http://www.unescap.org/tid/publication/indpub2323_part3nep.pdf [25 Aug 2011]. Paudel, M.S. (2006) National Workshop on Sub-national Innovation Systems and Technology Capacity Building Policies to Enhance Competitiveness of SMEs, [Online], 34

Available: http://www.nis.apctt.org/doc/china/Technical_Session_II/6%20%20Maheshwor%20Sharma%20Paudel%20country%20paper%20China.doc. [11 Nov 2010]. Paudel, M.S. (2006) 'SMEs in Nepal, It's Innovation Strategies ', Sub-national Innovation Systems and Technology Capacity Building Policies to Enhance Competitiveness of SMEs, 27-30 october. Peters, L., Rice, M. and Sundararajan, M. (2004) 'The Role of Incubators in the Entrepreneurial Process', Journal of Technology Transfer, vol. 29, pp. 83-91. Peters, L., Rice, M. and Sundararajan, M. (2004) ' The role of incubators in the entrepreneurial process. Journal of Technology Transfer 29 (1), 8391.', Journal of Technology Transfer , vol. 29, no. 1, p. 8391. Poutziouris, P., Binks, M. and Bruce, A. (1999) 'A problem-based phenomenological growth model for small manufacturing firms', Journal of Small Business and Enterprise Development, vol. 6, no. 2. Rice, M.P. (2002) 'Co-production of business assistance in business incubators An exploratory study', Journal of Business Venturing , vol. 17, pp. 163-187. Saunders, M., Lewis, P. and Thornhill, A. (1997) Research Methods for Business Students, 1st edition, Pitman Publishing. Saunders, M., Lewis, P. and Thornhill, A. (2007) Research Methods For Business Students, 4th edition, Pearson Education Limited. Sekaran, U. (2003) Research Methods For Business A skill Building Approach, 4th edition, John Wiley and Sons. Shaw, E. and Carter, S. (2007) 'Social entrepreneurship Theoretical antecedents and empirical analysis of entrepreneurial processes and outcomes', Journal of Small Business and Enterprise Development, vol. 14, no. 3, pp. 418-434. Storey, D.J. (1994) Understanding the small Business sector, 1st edition, Routledge. UKBI (2010) Business Incubation, [Online], Available: http://www.ukbi.co.uk/aboutukbi/business-incubation.aspx [1 november 2010]. Voisey, p., Gornall, L., Jones, P. and Thomas, B. (2006) 'The measurement of success in a business incubation project', Journal of Small Business and Enterprise Development, vol. 13, no. 3, pp. 454-468. Wickham, A.P. (1998) 'Strategic Entrepreneurship' FT Prentice Hall. Zimmerer, t.D. and scarborough, n.M. (2005) 'esssentials of entrepreneurship and small business management' pearson education ,inc.

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APPENDIX A-Key-Informant (Incubator) Survey Questionnaire PART-1 Key- informant Person nameDesignationSelection criteria
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1. How selection is done for Tenant Company? a. Referral b. Selection process. specify).

c. Others (please

3.Please rate the importance of following factors used for Selection Criteria.
Please tick the choices as appropriate Doesnt Matter Moderate Important Very Important

Family background Business proposal Stage of idea/business Creativity of idea

Technical knowledge Use of information technology Plans to implement Expected earning/expenditure

Range of desired support required Expected duration of support Market potential /commercialisation of idea Previous training experience

Employment history Patents/intellectual property Type of firm Available resources and cost Reservation by government

37

(marginalised/female /ethnic group)

Any comment (please specify) .

Infrastructure 1.Please rate the following infrastructures provided by incubator.


Cost of use Please tick as appropriate Furnished Unfurnished Please tick as appropriate

Free

Paying

Poor

Average

Good

Excellent

Office space Meeting room

Cost of use

Please tick as appropriate Shared Individual

Please tick as appropriate

Free

Paying

Poor

Average

Good

Excellent

Phone Fax Computer/ Internet/e mail Business postal address

Cost of use.

Please rate the service as appropriate

Free

Paying

Poor

Average

Good

Excellent

Loan equipment for business purposes


38

(laptops/projector/cameras)R & D facilities(facilities for designing, simulating and testing new products such as labs, servers)-

Any comment-(please specify)

Business support 1.Please rate the following business services provided Please rate the service as appropriate Provided Services (please tick Business as appropriate) service provided Provide Provided Never
d to all according to individual need provided Poor Average Good Excellent

a. Leadership training and coachingb. Financial managementc. Marketing managementd.HR managemente. Legal issues f. Entrepreneurial -development
Poor Average Good Excellent

g. Accounting and taxation


39

h. Export assistance i. Secretarial services j. Business registration services k. Others (please specify)

2.What is preferred approach to provide Business support ? please tick as appropriate a. Reactive and episodic- (entrepreneur requests help dealing with crisis or problem ) . b. Proactive and episodic counselling (manager engages entrepreneurs in informal ,ad hoc counselling). c. Continual and proactive counselling ( under review and intense aggressive intervention by incubator manager). d. Others (Please specify) .. 3.Any comment(please specify) .

Mediation and networking 1.Please rate the mediation and networking provided. Please rate the service as appropriate Provided Services (please tick as Mediation appropriate) and networking Provided Provided Never to all according provided provided
to individual need Poor Average Good Excellent

a. Mediation regarding partners-

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b. Mediation regarding customersc.Mediation regarding suppliers d. Mediation regarding employeese. Mediation regarding financiersf. Mediation regarding equity investmentg. Others (please specify) ..

2.Please Rate as appropriate for following statement.


Please tick as appropriate

Strongly Disagree SD

Disagree

Agree

Strongly Agree SA

a. Mediation has helped incubatee to understand and interpret regulations and law . b. Mediation has been able to influence

41

changes in regulations and laws. c. Mediation has helped increase the visibility, credibility and understandability of incubates in the eyes of external actors. d. Mediation has helped incubatees obtain legitimacy and social acceptance.

Graduation1.Please rank the importance of the following factors for graduation from incubation.
Please tick as appropriate Not at all less important Important Very important

Sales turnover Profitability Time under incubation Trading as independent business Others (please specify).

Problems of growth facing by small firms 1.Please rate the importance of following factors of problems of growth for new startup business in Nepal.
Please rate as appropriate Strongly Disagree Disagree Agree Strongly Agree

a. Financial resource problems-Lack of expertise in financial management

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- Access to finance -Cash and burrowing power -Tax rate -Inflation -Tax regulation -Others ( please specify)..

b. Marketing resource problems-Focus on day to day survival -Limited market information systems and research -Limited awareness and capacity for marketing activities -Others (please specify)..

c. Operational/production problems -Limited knowledge in manufacturing and distribution process -Inadequate supply of infrastructure services -Poor work ethics

SD

SA

-Inadequate educated workforce -Others (please specify)

d. General management problem43

-Crime and theft -Lack of government support -Government stability -Ineffective government bureaucracy -Policy instability -Corruption -Lack of technological sophistication -Others (please specify)..

e. Owner related problems -Resistance to modern management practice -Lack of entrepreneurial culture -Lack of motivation for growth -Lack of management abilities -Lack of trainings -Gender -Family history -Others (please specify). Measure of success of incubator-

APPENDIX B-Participant Incubatee Survey Questionnaire

Part 2 Incubatee information 1. Name2. Age44

3. 4. 5. 6. 7.

Gender - Male Education - High school Enterprise Name Enterprise Est. Date Enterprise industry type -

Female Undergraduate

Graduate

Infrastructure

Business support 1.Please rank the following business service provided


Please tick as appropriate Poor Average Good Excellent

Leadership training and coachingFinancial managementMarketing managementHr managementLegal issues Entrepreneurial development

Accounting and taxation Export assistance Secretarial services Business registration services Others ( Please specify)

2. Any comments (Please specify) Mediation and Networking

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1.Please rank the mediation and networking services provided by incubator.


Please tick as appropriate Poor Average Good Excellent

Mediation regarding partners Mediation regarding customersMediation regarding suppliersMediation regarding employeesMediation regarding financiersMediation regarding equity investmentsOthers (please specify).

2.Please rate following statement as appropriate.


Please tick as appropriate

Strongly Disagree

Disagree

Agree

Strongly Agree

a. Mediation has helped incubatee to understand and interpret regulations and law . b. Mediation has been able to influence changes in regulations and laws. c. Mediation has helped increase the visibility, credibility and understandability of incubates in the eyes of external actors. d. Mediation has helped incubatees obtain legitimacy and social acceptance.

3.Any Comments-(please specify) . Graduation-

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Problems of growth facing by small firms Perceived effect of incubation service provided to incubate 1.Please rate the following statement as appropriate
Please tick as appropriate.

Strongly Disagree

Disagree

Agree

Strongly Agree

1.Would not have progressed the business as quickly: slower growth . 2.Would have been less successful/not so professional or as competitive . 3.Would have not learned about issues in business . 4.would have taken longer (staff, businesses and network) 5.would be Less confident .

6.Very little would have changed 7.Would have spent more money on equipment/would have had to get quite a large loan 8.Would not have been taken seriously by larger businesses 9.Would not exist as a business/not trading 10.Would be less productive at home/lack of credibility within family resulting in less family support.

Measure of success of incubatee 1.Please rate the following statement as appropriate


47

Please tick as appropriate. Strongly Disagree Disagree Agree Strongly Agree

1.The sales turnover and profitability has been positive under business incubation 2. The enterprise has grown over incubation period.-stages of growth. 3.The firm has graduated leading to independent trading 4. Business skill/professionalism is improved

5. Confidence in self and business has increased. 6.Networking with peers has increased and productive. 7.There has been cost saving due to use of BI services. 8.There has been Positive Publicity to business.

2.Any Comments (Please specify).

APPENDIX C-List of Key- Informant


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SN NAME
1 Ms..Rakshya Aryal

DESIGNATION
Enterprise Development Officer,BIP

Association with BIP


2010- going on.

Mr. Rabindra K Neupane

-Ex Enterprise Development Officer ,BIP

2007-2009

-Lecturer of Small Business Management, Tribhuvan University -BDS Manager, FNCSI Nepal -Program Director,Integrated Management & Technology Research Center (Imatech)
3 Er. Pradeep Jha -Technical Officer, Government of NEPAL 2008-2010

APPENDIX D -List of Participant Incubatee


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SN Tenant
1 Anima Research Centre Himalayan udyog

firm owner
Visual & Ms. Service Sharma

incubation period

firm type
Visual house production

Anjana 2007-2009

agarbatti Mr. Hari Gopal 2007-2009 Shrestha Madhukar 2007-2009

Incence-stick prodution Production of ecofriendly improved cooking stove Alternative energy appliance production Designer dress production Macaroni production

Matri bhumi chulo jadan Mr udhyog K.C

Karnali technology Mr. Takka 2008 development Bahadur Nepali One peace fashion Ms. Sangita 2008 house Lama Kathmandu macaroni Mr. Shiva Hari 2008 industry pv. ltd Prasai

5 6

Ever Green Herbal and Mr. Gopal Kafle Cosmetic Products Pvt.Ltd. Nepal infopark Limited Pvt. Mr. Dhakal

2008

Herbal production

cosmetic

Saurav 2008

Online media content production Herbal production medicinal

Anamol Jadibuti Udhyog

Mr.Man Bahadur 2009 saud 2009

10 11 12

Pahadi Kshyetra Bikas Mr. Kashiraj Parisad Shiwakoti Bag Udhyog Pragati udhyog

Jatropa plantation Bags production Eductional production materials

Mr. Khadananda 2009 Shiwakoti

Hastakala Mr. Santi Raman 2009 Paneru

APPENDIX E -Records of Meeting

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Date- 28/6/2011 Summary of Discussion: -feedback of proposal given -acceptable with some modification -need to be precise about literature review and objective Work required by next meeting: -rewrite objective -literature review -foucus to find 2 author(book,journals for base of research) Date of next meeting: 4/7/2011 ,16:30 pm

Date- 4/7/2011 Summary of Discussion: -revise the focus of research and further development Work required by next meeting: -work on literature review more -focus on growth of companies Date of next meeting: 18/7/11 ,11:30 am

Date- 18/7/2011 Summary of Discussion: -body of literature review decided Work required by next meeting: -carry on literature review -topic business incubation need to be started Date of next meeting: 25/7/11 , 11:30 am

Date- 25/7/2011

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Summary of Discussion: -First half of literature review done Work required by next meeting: -look at important highlighted points -edit required parts Date of next meeting: 2/8/11

Date- 2/8/2011 Summary of Discussion: -main points of literature review discussed Work required by next meeting: -explain all the elements /issues of literature review -put into model -send over email Date of next meeting:8/8/2011

Date- 8/8/2011 Summary of Discussion: -summary model discussed

Work required by next meeting: -prepare and arrange together summary model -send over email

Date of next meeting:15/8/11

Date- 15/8/2011

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Summary of Discussion: -looked at summary model -summarise model Work required by next meeting: -final refinement needed -send over email Date of next meeting:22/8/11

Date- 22/8/2011 Summary of Discussion: -Discussed questionnaires preparation -looked at various model of questionaire drafts Work required by next meeting: Draft questions related to research objective Date of next meeting:2/9/11

Date- 2/9/2011 Summary of Discussion: - discussion over questionaire Work required by next meeting: -Draft judgment based questions that arises -draft Fact based questions that arises -send over email Date of next meeting:6/9/11

Date- 6/9/2011

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Summary of Discussion -questionaire and 4 point scale discussed Work required by next meeting: -Refinement over questionaire needed -send over email

Date of next meeting:19/9/2011

Date- 19/9/2011 Summary of Discussion: -Discussion over sets of questions -Discussion over layout of questions Work required by next meeting: -Refinement needed over questions -Modify question content -send over email Date of next meeting:23/9/2011

Date- 23/9/2011

Summary of Discussion -final discussion about questionaire was done Work required by next meeting: -final refinement needed to be done in questionaire -now focus in completing the methodology part.

Date of next meeting:6/10/2011

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Date- 06/10/2011 Summary of Discussion: -discussion about interpreting data -discussion about weighted mean -discussion about bar chart Work required by next meeting: -complete weighted mean in data obtained -start making graphical representations Date of next meeting:10/10/2011

Date- 10/10/2011

Summary of Discussion: -discussion about findings Work required by next meeting: -complete findings ,make all bargraphs Date of next meeting:17/10/2011

Date- 17/10/2011 Summary of Discussion: -discussion over findings,layout -amendment in topic of research -discuss over table of content

Work required -complete remaining works

APPENDIX F-Introduction Letter


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56

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