Incubation did not begin in Bahrain and the region until the early 21st century, it has now become at the core of the entrepreneurship ecosystem.
The concept of business incubation dates back to 1959 in the U.S.A. where Joseph Mancuso established the Batavia Industrial Center, in Batavia New York. Although it was a successful concept, incubation did not spread further until the 1980s and also expanded into UK and Europe. Incubation did not begin in Bahrain and the region until the early 21st century, it has now become at the core of the entrepreneurship ecosystem.
So what is business incubation really all about? Is it simply cheap rent? Unfortunately, there is a common misconception of the aims of a business incubator as being the place where a business owner can avail of below market rental fees, whereas there is much more involved. Business incubators are a support mechanism for businesses to help accelerate the successful development of start-up companies by providing an array of and expanding businesses that also may require a supportive environment in order for them to grown and flourish. Our incubator centers do offer below market rates that are in some cases subsidized, but the support services is what really provides the value to an entrepreneur at the very early stages of their business.
The concept of business incubation dates back to 1959 in the U.S.A. where Joseph Mancuso established the Batavia Industrial Center, in Batavia New York.
Many may discount the value of shared facilities, networking capabilities, and the access to guidance, coaching, and training and only focus on the financial rewards of low rent, but we have seen that the key to success for startups is the guidance and support they receive through coaching, networking, and mentorship. All of these services are readily available when a business is a part of an incubator center. Most incubator centers have an extensive network of support organizations and other incubators locally, regionally, and internationally which can all be accessed by the businesses that reside at the center. Furthermore, networking begins within the center itself where businesses are neighbors with other businesses, and who can understand an entrepreneur better than another entrepreneur? Mentorship is always key for startups and most incubator facilities also provide mentorship programs and alongside business guidance many have also incorporated coaching as a more advanced method for enabling entrepreneurs toward their goals and overcoming challenges.
The work of business incubators is not always easily measured and most often can go unnoticed, but they truly provide an environment conducive of graduating success. In 2013 two sisters approached Bahrain Development Bank (BDB) to start up their own retail business, which stemmed from the realization of a gap in the market and an innate passion for the concept. The sisters held strong entrepreneurial competencies, and required some guidance and support to start their business. At that time the first women incubator center in the region was in its final stages to be launched and the sisters were recommended to start up there rather than locate in the market, although that was their initial plan. The sisters located their retail shop in Riyadat and in October 2013, Pachachic was born at Riyadat (women incubator center in Bahrain). Although both Pachachic and Riyadat were fledglings the supporting ecosystem the incubator had to offer the business assisted this startup to be able to grow into what we proudly see as a successful home accessories retail outlet in Bahrain.
The support extended to Pachachic through incubation was very subtle other than the most obvious low rent, the guidance and support through the team of coaches provided them unlimited amount of guidance where required. Most successful entrepreneurs do not require spoon feeding, but when they require support the environment of an incubator becomes like a family nest where you can reach out to fellow businesses or the incubator staff to find solutions or look at ways to enhance, grow, and expand.
The work of business incubators is not always easily measured and most often can go unnoticed, but they truly provide an environment conducive of graduating success.
For most startup businesses the first 3 years are critical in determining its success and its ability to grow. Pachachic truly remained focused on their goals and did not fail to realize that for them to be able to sustain during the startup years they needed to develop a growth strategy which included devising proper systems so that the business did not only depend on them solely. The sisters focused on delivering quality and service and were not afraid to reach out for help and assistance whenever required. There close relationships with their coaches and mentors allowed them to become aware of all various programs and services that could support them and their business. That is why when they were looking to grow out of Riyadat earlier than the usual incubation period, they were well aware of the retail incubation program. The retail incubation program offers entrepreneurs predominantly in this sector the abiiity to avail of incubation support programs and schemes at a location of their choice, which is more suitable for their business. Most retail businesses depend highly on location for their success, even in the early years and unfortunately most of them may not be able to afford. The retail incubation program was developed by BDB Development Services Division to support businesses with such needs- and Pachachic was our first example of a graduate of incubation into retail incubation toward the successful growth of the business.
Pachachic are now present in Seef Mall Bahrain and are a part of the Rowad Retail Incubation program where they not only have access to subsidized rent, but to a myriad of support services namely bespoke coaching programs and access to a vast support network. The passion, determination, and trust the two sisters all attributed to their current success and we hope to see many more successful stories of growth and graduation from the incubator centers.
Riyadat does face empty nest syndrome when their fledglings graduate, but being a part of the retail program leaves Pachachic still close to home through the support network. Seeing businesses leave the incubator now paves the way for other businesses to enter the support environment and to startup and grow!