CENTRE PLUS NEWS No. 5, 2013

SERVICES FOR BUSINESS (Business Incubators)What is a business incubator? What are the benefits of it?

Business incubator is a public institution operating in the ter-ritory of a county or in the ter-ritory of a few municipalities, which on favorable conditions rents out premises, technical and office equipment, and pro-vides business information, consulting and training servic-es for incubated entities. The main objective of BI is to sup-port the owners of startup busi-nesses, to promote the creation of new workplaces, to reduce the risks for operating com-panies and to help companies which have good business ide-as, but financially are weak to reach a level, when they can engage in economic and com-mercial activities, and compete in the market independently.In accordance with their goals business incubators organize complex assistance to startup entrepreneurs:- Rent out their property (premises, office equipment)- Provide information, consult-ing and training services and organize dissemination events- Provide office (telephone, fax, document prepara-tion, translation, multipli-cation, internet connection, etc.) and advertising services

-Organize exhibitions, pres-entations and mediate in finding financial spon-sors and foreign partnersThe services of business incuba-tors are paid, but the prices are minimal and reach about 200 LTLper month. Incubated compa-nies who start their business at incubator get rent discounts for the first three years: in the first year - 75 percent, in the second year - 50 percent and in the third year - 25 percent of the rent fee.

Who can benefit from the ser-vices of business incubator?

The procedures and selection criteria for incubation of enti-ties are established by the rules of business incubator. Resi-dents who have a business li-censes (during the period, when the license is valid), micro and small enterprises can be incu-bated in business incubators.

Decision about the adoption of the company is made at shareholders’ meeting. The main criteria for determin-ing whether the company will be adopted by the busi-ness incubator are as follows:- A company is engaged in ac-tivities which promote the crea-tion of new workplaces- The heads of a company have original ideas, after realization of which the new areas of ac-tivities will be assimilated and new services will be offered- A company produces the right products for export or provides services which are marketable in a city or region- A company produces of high value-added goods and services- A company implements scien-tific discoveries and technologi-cal innovationsA period for incubated company to operate in a business incuba-tor is determined by the contract and can last up to five years.

Centre Plius News No.5, 2013

. At the end of the period the incubated company must leave the incubator. Entity which left the business incubator, when the incubated period ended may be granted associate mem-ber status. To become associ-ate members of BI may also economic operators who are not in it yet, but want to be the members of business incuba-tor. Associate members can use some services offered by the incubator (information, ad-vice, training etc.) in their favor.

Currently these incubators are operating in Lithuania:

Alytus Business Incubator (Merkinės str. 2a, Alytus), Re-gional Science Park at Kaunas University of Technology, (Stu-dentų str. 65, Kaunas), Kazlų Rūdos Business Incubator (S. Daukanto str. 19, Kazlų Rūda), Šiauliai Business Incubator (Aušros avenua 66a, Šiauliai), Telšiai County Business Incu-bator ( Seda str. 34, Telšiai), Vil-nijos Business Incubator (Pra-monės str. 97, Vilnius), Ignalina Atomic Power-station Regional Business Incubator (Taikos pr. 7, Visaginas) Saulėteko slėnis (Sunrise Valley) (Saulėtekio avenue 15 (3rd floor).Startup is another important program for business begin-ners. Its programs are ongo-ing initiatives to promote en-trepreneurship in Lithuania. They introduce business ide-as, help to find same-mind-ed people and partners, give opportunities to consult with business mentors and present possibilities to invest in your young businesses (pitching).

Ongoing initiatives in promot-ing entrepreneurship:- The Startup Kitchen is a project for active young people who want to implement innovative and socially responsible business ideas. The project is open to all - even those without ideas. At open lectures and conferences you can get useful information, which may give you a good idea for a new start. More informa-tion: www.thestartupkitchen.lt - “Verslauk” is a national busi-ness plan competition, which takes place each year in the fall. The competition encour-ages young people to turn their ideas into successful business-es, and the best entrepreneurs can win cash grants for their business start-up. More in-formation: www.verslauk.lt - StartupHighway is a 13 week acceleration program that combines € 14K in funding,

business advice from our in-ternational network of mentors and access to essential resources for starting up. More informa-tion: www.startuphighway.com

Business incubators and Startups provide manifold help for start-up entrepreneurs in Lithuania, both Lithuanians and foreigners living in Lithuania. Do not miss the opportunity to take advan-tage of the services provided.

Useful links:

http://www.startbusiness.lt/ www.krvi.lt http://www.sunrisevalley.lt/ http://www.verslovartai.lt/ http://www.lvpa.lt/Puslapiai/VersloInkubatoriai.aspx http://www.tavi.lt/ http://inkubatorius.lt/ http://www.startuplithuania.lt/

Centre Plius News No.5, 2013

“Main goal of business incubators is to support startup entrepreneurs, to promote

the creation of workplaces and enable financially weak companies independently to

engage in economic and commercial activities, as well as to compete in the market.”

Currently, Lithuania has six business incubators – in Kau-nas, Šiauliai, Kazlų Rūda, Telši-ai, Alytus and Ignalina. They offer services both to Lithuani-an and third-country nationals. Citizen of Iran R. S. said that he had not heard about business incubators until he participated in an advertising event. How-ever, for Iranian it seemed too complicated, so when he was starting his own business he did not turn for help: “You need to have a clear idea and a plan, when you turn to them. For the person of my kind it seemed too complicated.” R. S. said that he had heard that sometimes the ideas brought were copied and poached. Iranian prefers to turn to a business consultant and pay the money instead of using ser-vices that are not clear. “Or may-be people are afraid of things that they do not know. At the moment I think so”, noted R. S.

According to the director of Telšiai Business Incubator Vir-ginia Jasevičienė, primarily they provide services for young en-trepreneurs of Telšiai county and only then for foreigners. How-ever, the number of third-coun-try nationals is increasing:“More often appeal foreign-ers from Russia, Ukraine and Moldova. There are only a few from other countries.” First of all they establish and develop communication, when a per-son is still in his home country.

Telšiai Business Incubator closely cooperates with em-bassies, where Economic at-taches get all the information. If there is an interested, they delegate it to the incubator.

Physical distance is a factor that prevents business process: “We have already noticed that providing services to persons that reside abroad takes a lot of time. Although informa-tion technology is advanced, but the advice would be more effective if carried out on the spot. We have noticed, when third-country nationals come to Lithuania, there is a significant acceleration of cooperation.”

Usually immigrants turn to Telšiai BI for business start-up and legal issues. Business ideas are related to the pharmaceu-tical sector. V. Jasevičienė re-membered only one occasion, when it was set up the joint business by citizens of Moldo-va and Lithuania, while all oth-er businesses were unilateral.According to the director of Ka-zlų Rūda Business Incubator Meirita Tamašauskienė, the most important function of a business incubator is to help startup en-trepreneurs. “Our incubator not only provides industrial and of-fice space for rent on favorable conditions, but also rents office equipment, provides copying, binding, scanning services”,

The newspaper is published, implementing the project “Consultation and information centre PLUS” according the European Fund for the

Integration of third-country nationals, annual Programme 2012

CENTRE PLUS · A.Smetonos street 5, room No 302 · VilniusTel.: 85 261 74 82 / 8 605 77 245

Email: centre@tja.lt · www.facebook.com (search for: Centre Plus)Working days: Monday to Friday · Opening hours: 11:30 to 15:30

and 16:30 to 20:30

Centre Plius News No.5 2013

said M. Tamašauskienė. She pointed out that most of for-eigners were from Belarus. She remembered only one case, when the joint Lithua-nian-Iranian business was set up: “We were consulting both businessmen about account-ing, business planning, invest-ment, and legal issues. It was interesting to watch the pro-cess and improve my skills as well”, said M. Tamašauskienė. Director professed that she was disappointed with third-coun-try nationals, because there were many cases, when they registered a company, got an address, but there was not real activities: “When facing the increasing number of nega-tive experiences and fictitious businesses, we decided that the first business year baskets must belong to Lithuanian entre-preneurs and only then for for-eigners. It is sad, but negative experiences determine guide-line of work”, said the director. Manager of Šiauliai Business Incubator Rita Vilkaitė was glad

that they had already had the third project, where the target group was the third-country nationals. “Our first project in 2009 “The promotion and in-tegration of highly qualified third-country nationals in Nor-dic region of Lithuania” was successful and was followed by the second and the third”,said R. Vilkaitė. However, the beginning of the project the manager remembered as a slug-gish process: “In the beginning it was difficult with the target group, but later it became easier. Now we have loyal customers who had benefited from our ser-vices and are using them until

now.” R. Vilkaitė pointed that in order to attract customers you could not sit and wait. Šiauliai BI organizes workshops, sem-inars and events. “Information is distributed in all possible ways: we have a web site and also directly interact with com-panies which had employed the third-country nationals”, shared the project manager.

Now business incubators more often orient their services to-wards foreigners and expand access to them because the pro-cess of migration is increasing and it is essential to meet the needs of coming foreigners.