Business Incubator for Rural Entrepreneurs

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Business Incubator for Rural Entrepreneurs

• October 4th, 2007
• Hanoi, Vietnam
• Wichai Saretawekul
• Program Manager
• Kenan Institute Asia

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Topics

• Background
• Project Information
• Objectives
• Processes
• Key Achievements
• Lessons Learned
• Challenges

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Background

• Be awarded infoDev grant in 2004
• Planning Phase for a business incubator in
  Thailand
• Partnered with the Office of Vocational Education
  Commission (OVEC)

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Background (cont.)

• Site visits to 10 vocational colleges in 5
  regions
• Provision of business incubation seminar,
  business plan workshop, and incubator manager
  training

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Project Information

• In 2006, K.I.Asia was awarded the second grant
• Implementation phase for a pilot business
  incubator in Thailand
• Planning phase for pilot business incubator in
  Laos and Cambodia
• Partnership with Lao National Chamber of Commerce
  Industry and Siem Reap Chamber of Commerce
• Selected one vocational college for a pilot
  business incubator

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Business model
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Project Information (cont.)

• Suratthani Vocational College

Source http//www.mapsofworld.com
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Project Information (cont.)

• About 645 km. by road from Bangkok
• Occupies an area of approximately 12,891.4 sq.
  km.
• Most incomes depend on agriculture, services and
  trade respectively.
• Per Capita GPP was shown 97,936 baht in 2005.

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Why Suratthani Vocational College?

• Strategic Location
• Full of facilities and experimental equipment
• ICT supported
• Strong network with government agencies, private
  enterprises, and local community

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Why Suratthani Vocational College?

• Quality human resources
• Well-known in the community due to its long
  establishment
• Achieves plenty of academic awards

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Objectives

• To be a pilot business incubator for vocational
  colleges in Thailand.
• To assist vocational school graduates and rural
  community members to succeed in realizing their
  goals of starting a successful business.

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Objectives (cont.)

• To assist needy, aspiring entrepreneurs who
  typically lack the funds to implement their
  business plans.
• To educate them on best business practices and
  promote and implement ICT skills.

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Objectives (cont.)

• To strengthen local capacity within business
  incubator and rural community to promote
  ICT-enabled innovation and the appropriation of
  ICT, both hi- and low-tech.

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Management Model
K.I.Asia
Incubator Clients
Incubator Managers (3)
Business Incubator Management Team
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Processes
Pre Incubation Period
Preparation Period
Incubation Period
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Processes (cont.)
Preparation Period
Incubator Management Team
Business Incubator
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Process (cont.)
Food (3) - Thai style crab cakes steamed
fish curry cake - Herbal/Cereal beverage -
Pastry
Craft (4) - Batik (2) - Glass painting
- Soap carving
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Incubator Clients
Service (5) - Thai massage - Graphic
design - Flower arrangement (3)
Applicants
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Incubator Clients
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Incubator Clients
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Incubator Clients
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Processes (cont.)
Pre Incubation Period
Orientation
Business Plan Training
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Processes (cont.)
Incubation Period
Monthly Meeting
Incubator Clients Visit
Kasetsart University Business Incubator Center
Chulalongkorn Business Incubator
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Visit of Deputy Minister of Education
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Key Achievements (Incubator Clients)

• Better understanding of needed business skills
• Improved ICT/computer skills in related to
  product design
• Improved technical skills
• Reduced production costs
• Raised clients confidence

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Key Achievements (Incubator Clients)

• Significant increase of customers
• Increase of average monthly income
• The brand name and product packaging has been
  created
• Network with other incubators clients in the same
  business type

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Key Achievements (Incubator Clients)
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Key Achievements

• Close cooperation with OVEC
• Increased internal capacity of K.I.Asia and
  vocational college
• Networking with organizations in Thailand and
  internationally
• Incorporated ICT use into the business model
  which targets rural communities

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Lessons Learned

• Networking and cooperation are fundamental to an
  effective incubator
• Seminars and trainings are crucial
• Even in a fully supported incubator, it is vital
  to charge tenants some fee to ensure commitment

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Lessons Learned (cont.)

• An incubator manager must have support from the
  community
• ICT utilization must be implemented from the
  early stages of an SMEs growth
• The right incubator manager is essential to
  success

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Lessons Learned (cont.)

• The government needs to be informed about the
  benefits of business incubation and how to
  properly measure its effects

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Challenges

• Make entrepreneurs understand what the business
  incubator is and how it can assist them.
• Analyze what the community and each entrepreneur
  really needs.

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Challenges (cont.)

• Persuade entrepreneurs to utilize technology and
  ICT in their business.
• Ability of the business incubator to sustain
  itself.
• Entrepreneur lacks personal economic resources,
  business literacy/education

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K.I.Asia Partners
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Thank You

• Kenan Institute Asia
• Partnering for Sustainable Development
• Email wichais_at_kiasia.org