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Research & D evelopment nowadays is the most important thing in business. Reliable base concept; “Man is always interested about business because of money involving and the hard work”.

Definitely, this will be the solution of unemployment as a simple way. Indonesia, famously known by its abundant in resident has great potential to be developed country, but it still doesn’t happen! Indonesia has more than 50% unskilled labor caused bad competitiveness rank in business. Editorial overview about ‘Global Competitiveness Report’ year 2003-2004 marked Indonesia as 72nd rank from 102 countries in the world although 60th position in the year 2002-2003.

Meanwhile, making business and entrepreneurship are our concern. This can be included in the implementation small business in Indonesia and the other countries. Few home-based businesses as included small business follow Gateway Computers growth from garage to Fortune 500 Company, yet a 1994 survey found that 125,000 Oklahoma home-based businesses generated over $3 billion in income. Central Statistic Bureau shows us about 99.99 % business in Indonesia dominated by small business enterprises. This phenomenon is relevant to the facts that a lot of labor in Indonesia concentrated in this sector of business.

Small business sector can rely on economic development in Indonesia. In order for communities to expand job opportunities and the local tax base, state and local policy makers typically have relied on three economic development choices: (1) attract outside businesses, (2) expand existing businesses, and (3) develop new businesses. The success of each of these three choices has varied. While attracting outside businesses is a great idea, the “big bang” approach is often a big bust because, at most, only one community in ten is successful (Scudder & Rettig, 1989).

This condition make the issue of making business is the most important. Making business as small business is ideally adopted by one institution which can help continuously growing that small business. We can take the analogous as baby still need nutrition from his mother. The baby must be thought until he can adapt or socialite with the environments. The Small business is the baby which is next called “tenant” whose is guided by Business Incubator.

Teresa Gillotti and Ryan Ziegelbauer, American business experts give definition of Business incubators as facilities that provide small, entrepreneurial businesses with affordable space, shared support and business development services. They can help young businesses during their start-up period when they are most financially vulnerable. While not a panacea for a community’s economic struggles, incubators can provide a boost to small business (tenant) and promote entrepreneurship.

University is the right place to get new idea and innovation which can make new business, of course it means creating jobs. Application of the business theory and the attention to be entrepreneur from student at university must be driven with the build of business incubators, the place where small businesses and young entrepreneurs born. This is the reason why Economica interest to have a research about “The Role Business Incubator Making Small Business”. We want to inspire people about building business incubator.

In reality, Massachusetts Institute of Technology (MIT) build The New Orleans Business Incubator Center (NOBIC) which will address critical business retention needs with the long-term goal of facilitating new jobs, public revenue, and economic development opportunities for New Orleans. The University of North Carolina has Small Business & Technology Development Center which is the same concept with business incubator.

Indonesia has several business incubators which have a lot of tenants. As our research, some of them have succeeded with the profit more than 1 billions. They are guided by business incubators in the universities like IPB (Institut Pertanian Bogor), Ikopin (Institut Perkoperasian Indonesia), ITB (Institut Teknologi Bandung), UNPAD (Universitas Padjajaran), Universitas Pancasila, Universitas Gunadarma, etc.

One of the most significance Business Incubator is to guide the tenants until they can make bounce up profit. For example, average tenants in IPB has profit about 200 billions a year, with the product; Nata De Coco ; Sayur Mayur (Letus) “Fresh Pacet” ; Embrio mushroom ; Cattlement cultivation Patin’s fish ; “Zoom Computer”. In University of Indonesia (UI), there was a tenant which has been company until now and growth fast to be PT Medixe Sekawan Utama with the product baby’s incubator. The distribution spread almost all regions in Indonesia. In ITB, there are more tenants whose result functional product for many people needs, just like internet link, website, robot, tooth machine drill. Most of the input comes from local.

There are seven components of a successful incubator from Colin Barrow’s Incubators: A Realist's Guide to the World's New Business Accelerators. There must be:

  • Clear and Well Communicated Goals.
  • Incubator Manager.
  • Business Services.
  • Shared Resources.
  • Physical Space.
  • Financing.
  • Application and Acceptance Process.

Automatically, this can be the solution to improve economic development from university as the loyalty of build residents. We wish the research about business incubator will continue and this concept will be generally used by the universities in Indonesia to shape brighter future for u, for us, and for our generation


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