**2. Economic development instruments**

There are several economic development tools that can be used in conjunction with the incubation of start-ups, which will be addressed in the following subsections.

#### **2.1 Small business financing**

For entrepreneurs, money is a resource but not an end in itself. It is true that an innovative idea needs capital to subsist. It is also true that a large number of businesses fail due to lack of adequate funding. However, other resources are equally vital to entrepreneurial success, such as specialized work teams and sales and

distribution capabilities. Having financial capacity is not (always) a guarantee that the appropriate resources are put together in the right way and at the right time.

Initial or seed financing programs can take a variety of forms and are often used in combination with the most effective incubators. Small loans from investment funds (made up of grants from the government and/or local government), with below-market interest rates, are provided to support the creation of new businesses [9]. As the loans are paid, the money of the fund is reinvested in subsequent deals. The incubators can also help start-ups incubated to obtain financing, first linking up with business angels and venture capital investors and on the other hand giving technical support in the preparation of documents and presentations.

Business angels invest in small start-ups or entrepreneurs, can have multiple origins (including family or friends of the entrepreneur), and invest in one go to boost the business or make a continuous injection of money to support the company in the early stages more difficult. Venture capital consists of investor financing for start-ups and small businesses that are believed to have long-term growth potential. For companies that do not have access to the capital market, venture capital is an essential source of money. The risk is typically high for investors, but they have intervention in company decisions, which is a disadvantage for the company funded.

Business angels offer advantages compared to venture capital: business angels invest in the early stage of the business, that is, they help start-ups take their first steps in the market, while venture capital investors bet on the viability of the business and can profit from the business by the investment. In this sense, business angels are the opposite of venture capital investors.

Another way for entrepreneurs to get the resources they need or use is through crowdfunding, which is a process directed at individuals to raise funds to finance a specific cause or project in return for a variety of rewards. Thus, we can say that crowdfunding bases its dynamics on raising funds to finance a business or a project: (i) in exchange for share capital; (ii) in exchange for tangible, non-monetary rewards, such as a product finished; or (iii) in exchange for a financial return at a future date.

#### **2.2 Industrial parks**

Although not essential to the effective operation of a small business incubator, there are benefits to locating it within municipal industrial parks. The incubator can provide a space with the necessary infrastructure at the lowest cost and close to similar start-ups. The industrial park also wins with the installation of the incubator, as it enhances the local demonstration effect for the creation of other start-ups. Incubators can also be installed in old abandoned facilities (state, military, and industrial) to stimulate local development [10].

#### **2.3 Professional qualification**

Employment and skill development programs enhance local qualifications, increasing individuals' willingness to develop innovative start-ups or collaborate on incubated start-ups. The existence of qualified human resources at the level of high technology facilitates the development of start-ups.

#### **2.4 Entrepreneurial training**

Programs aimed at the emergence of local entrepreneurs are directly complementary to the start-up incubators. These programs provide the necessary skills

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studies [1, 11].

*Business Incubator and Economic Development DOI: http://dx.doi.org/10.5772/intechopen.88562*

thereby contributing to economic growth.

of knowledge and learning in the classroom.

oriented to practice and action in a turbulent environment.

**4. Creating business in a turbulent environment**

**3. Education in the development of entrepreneurship**

competences needs verified in society and in business fabric.

manage start-ups.

**2.5 Investment in education**

and competencies—for example, marketing, financial planning, hiring and human resource management, information systems and strategy—to successfully build and

In addition to entrepreneurship training, investing in local education infrastructure is a boon to the development of start-ups. Educational institutions provide the human resource base crucial to economic development. Thus, higher education institutions can create a series of synergies with the community—for example, service delivery and the development of strategic partnerships—increasing the effectiveness of start-up incubators. Universities are sources of new ideas to create start-ups of high technology and with differentiated value for society. The faculty can, on the one hand, provide students with the necessary skills to encourage the creation of start-ups and, on the other hand, provide services to the community,

Education plays a vital role in the development of entrepreneurship in society.

Currently, there is a great difficulty in obtaining a job where the knowledge acquired in a higher education course can be applied, through the conclusion of a stable employment contract, and with a remuneration proportional to the education effort carried out as a personal investment. Therefore, it is imperative to adapt the education system to the challenges in the labor market. Therefore, rather than teaching someone to work for entrepreneurs, it will be necessary to pass on knowledge in order to encourage the emergence of new entrepreneurs in the community. The university as a reference in entrepreneurship education contributes to the preparation of future economic actors through the execution of programs in entrepreneurship. This allows you to impart knowledge and techniques that facilitate the creation of a business and simultaneously encourage students to create new business. In this way it is possible to increase the entrepreneurial potential of the students, but few start new business during and after the conclusion of the

In this sense, the entrepreneurial education constitutes a challenge, on the one hand, to the institutions of higher education in what concerns the design and implantation of incubation in articulated network with diverse economic actors and, on the other hand, to the traditional pedagogical methodology of transmission

Therefore, entrepreneurship education aims at increasing students' awareness of the various aspects of business creation, emphasizing a philosophy of learning

Entrepreneurs are challenging existing competitive assumptions by creating value for consumers through new forms of business. This created value may lead

Being the curricular structure of higher education courses—first and second cycles—is a good indicator of the relationship between the training provided (knowledge transmitted) in educational institutions and the technical skills and and competencies—for example, marketing, financial planning, hiring and human resource management, information systems and strategy—to successfully build and manage start-ups.
