Policy for ‘Business Incubation Centers’ in line with HEC policy 2021

Introduction and Objectives:

Business Incubation is a business support process to accelerate the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. By integrating students, entrepreneurs, and universities; business incubators have the most significant impact on the economy when tied to universities.

Vision:

Prepare a generation as Job Provider rather Job Seekers

Mission:

To establish an entrepreneurial hub for; Development of an innovative ecosystems, fostering an entrepreneurial spirit within academia to ensure consistent supply of investable projects.

Slogan:

Ideas can nestle; dreams can jostle.

Objectives:

• Supporting the development of an innovative ecosystem at university.
• Fostering an entrepreneurial spirit at university and encouraging students and faculty to create new enterprises.

Structure of Business Incubation Centre:

1. Business Incubation Centre Director is responsible for the overall directional instructions and planning to ensure the continuous supply of investable projects both from students as well university staff.
2. The Business Incubator Manager is responsible for the oversight of daily operations of the business incubator including but not limited to; marketing the facility and recruiting new tenants, providing support to existing tenants, facilitating training for tenants and aspiring entrepreneurs and developing infrastructure which supports and encourages economic development in Country.
3. Business Incubation Centre will remain engaged in early stage incubation of startups. The following allied facilities and strengths are required by The University of Faisalabad;
• Readiness in terms of innovation through incubation, financial capacity, strategic commitment proven through a viable business plan and sustainability model.
• Expertise in virtual incubation will be an added advantage.
• Be in a position to use allocated funds for initial setup of the incubators as per approved plan and agreement of the Corporate Advisory Board.
4. In case, Business Incubation Centre at The University of Faisalabad design any consortium, the partnering universities/ corporate firms will support the Business Incubation Centre through Human Resource, logistics and physical services along with supervisory support to incubator.
5. The Business Incubation Centre Corporate Advisory Board (or similarly named) will comprise of at least 07 Members coming from the Private Sector and ORIC / BIC management. The Vice Chancellor and an Eminent Business/Industry Leader will serve as Co-Chairs of the Corporate Advisory Board.

Performance of Business Incubation Centre:

The following Key Performance Indicators on a yearly basis shall be and which can be validated through annual onsite visits and become the basis of performance of Business Incubation Centre;

1. Number of Faculty Startups Encouraged / Opportunities Discussed.
2. Number of Faculty Startups Created / Startup Revenue Earned by Faculty Startups.
3. Number of Jobs Created and Retained over 2 years of Faculty Startup Founding.
4. Number of Student / Alumni Startups Created.
5. Startup Revenue Earned by Student / Alumni Startups.
6. Number of Students Placed in University Startups.
7. Funding Secured for Faculty / Student / Alumni Startups.
8. Business Incubation Centre’s available facilities and human resource.
9. Startup Business Plan / Pitching Competition / Boot-camps.
10. Number of License Agreements, NDA, MTAs, Consultancy Agreements, IP Rights signed by Startups.
11. Venture Capitalist / Angel Investment / Seed Funding ensured by Startups.
12. University Awareness Seminars / Entrepreneurial Awareness Campaigns / Investor.
13. Connect Events / Open Houses for promotion of Entrepreneurial Spirit among students, researchers and faculty members.
14. These Key Performance Indicators (KPIs) include a mix of input, process, output, and outcome measures. This list shall evolve every 3 years to account for new and emerging needs of the Business Incubation Centre.

Incubatee Selection Procedure:

1. The incubate selection is a critical activity. Business Incubation Centre must exercise extreme caution in inducting the right incubatee based on its established criteria, resources and availability of services necessary for efficient and successful completion of the project. There will be four selection procedures, as below;
• Through Business Plan Competition (winners of BPC will be incubated).
• Through routine incubatee selection procedure, i.e. advertising call for proposals (CFPs) conducting pitching event, conducting selection committee meeting, final selection, starting incubation process.
• Call for Business Plan.
• Call on Industrial requirement.
2. The major parameters which are to be considered for the selection of a right incubatee are as;
• Necessity/Need of the product or services.
• Proves of need of the product/service.
• Ability to identify the target market.
• Unit economics (what it is now and what it could be).
• Is the idea backed by some research or market survey?
• Legal aspects.
• Strong sales and marketing plan.
• Team quality.
• Market depth and size.
• Game changing ability.
• Global or domestic.
• Experience of team members.
• Pre-feasibility.
• Ability to create jobs and provision of business plans.
• Technology readiness and innovative projects.
• The Incubatee being a new startup or complementary to existing firms.
• Be able to contribute towards operating expenses.
• High growth potential and social impact.
• Relevant professional experience and education.
3. The selection committee will include;
• The Business Incubation Managers.
• One academic expert.
• One industrial expert.
• One representative from Quality Enhancement Cell-QEC

Graduation or Exit Criteria for Incubated Startups:

1. The Incubatee will be graduated out of the incubator once it meets the following criteria;
• Incubatee has successfully completed / followed the syllabi set by the BIC as graduation criteria.
• Incubatee has spent 12 months at the incubator and the project hasn’t completed yet. An additional 6-12 months could be given by the incubator manager if he/she feels that the project can be completed by then, based upon the deliverables.
• Incubatee has successfully achieved the business targets and objectives or developed the prototype and has found an investor or venture capitalist to either buy it or take it to the production stage.
• If Incubatee fails to meet set targets twice in a calendar year.
• If the review committee decides that the project is no longer viable.
• If Incubatee violates the tenancy agreement.

Business Incubation Centre Management:

1. BIC Director / Manager, ideally be a business graduate with 10 years plus managerial experience preferably in entrepreneurial / corporate / incubation management environment. He / She should also be familiar with latest practices in incubation programs and have demonstrable quality of mentorship and driving innovative startups. Each Manager shall be responsible, in consultation with the Vice Chancellor, for appointing his/her team to deliver his/her respective Key Performance Indicators-KPIs.
2. The BIC Manager in consultation with the VC and BIC Corporate Advisory Board may hire dedicated Human Resource and support team for effective functioning of BIC which may include, Startups Support Executive(s), Admin & Finance Executive(s), and Office Assistant(s).

Terms of Reference for BIC Corporate Advisory Board:

1. The BIC Corporate Advisory Board shall be governed by the following terms of references;
• The Corporate Advisory Board-CAB will be the governing body for the BIC and will provide strategic leadership and governance oversight. The CAB will provide dedicated advice for decisions and actions to be taken in accordance with the objectives, approach and scope of the BIC.
• The CAB will continuously review the performance of BIC in line with the devised KPIs and strategic plan and guide the BIC leadership by providing effective oversight and evaluations.
• The Corporate Advisory Board will;
• Devise and approve the 5-year strategic plan for the BIC and ensure its proper compliance.
• Review and approve the recommendations for implementation of initiatives for better achievement of BIC objectives.
• Review periodic monitoring reports on the basis of KPIs and give pieces of advice the BIC leadership, accordingly.
• Provide policy guidance to BIC leadership.
• Ensure that BIC’s activities and initiatives are coordinated with other relevant stakeholders, inside or outside the The University of Faisalabad.
• Bridge the gap between academia and industry and provide crucial advice on matters to promote university-industry linkages and commercialization.
• Any other matter relevant to the better functioning of the BIC.
2. It will be ensured that the CAB members have expertise in dealing with roles and responsibilities associated with the better performance of BIC and will clearly state their conflict of interest in any matter impairing the proper functioning of BIC.

Post Incubation Guidelines:

The BIC will maintain a two-way relationship with its graduated startups. This will include but not limited to:

• Providing support in business management and mentoring to graduated startups for initial two years of live environment, including facilitation and guidance regarding firm registration, registration with tax regulatory bodies, marketing, business development, HR, etc.
• Periodically meeting with the startups so as to ascertain the diverse needs and challenges to be addressed by the BIC through its incubation program.
• The graduated startups and companies may also provide internship / employment opportunities for BIC incubatee / fresh graduates.
• Involve and disseminate venture-capital / seed-funding / angle investment opportunities for the graduated companies and actively assist them in raising of funding resources.
• Establishment of network of graduated startups and organizing periodical meetings with existing incubatee for their grooming and mentoring thus creating a dynamic environment through which all stakeholders can benefit.

Startup Guidelines for Faculty:

In case of a startup where the original c originates with a faculty members of The University of Faisalabad, following guidelines will be adopted;

• The BIC will help in determining whether granting rights to the startup is the best mode for commercialization as opposed to a licensing agreement with a third-party.
• The University of Faisalabad shall develop and introduce Intellectual Property Right-IPR protection/spin-off policies and guidelines to safeguard the interest of its researchers and faculty-members.
• The startup will ensure that the entrepreneurial activity must be balanced and should be initiated after careful review of proposed relationships.
• The University of Faisalabad and its faculty member will have the responsibility to optimize technology transfer and mitigate any conflict of interest, conflict of commitment when licensing IPR to a startup is being considered.
• The faculty-members will categorically disclose any interest in the startup and will serve only in advisory or consultative roles in the company. Moreover, the faculty member will also be responsible for separating university duties from personal financial interests in the startup company.
• The faculty-led startup company may also, under very specific circumstances, support relevant research projects at The University of Faisalabad, subject to the terms and conditions of The University of Faisalabad.