Measuring the value of a business incubator through the alumni entrepreneurs

University essay from Lunds universitet/Byggproduktion

Abstract: Problem Formulation: The return on invest and value of a business incubator is usually calculated through financial figures from the incubators alumni companies. However, an incubator does not coach companies; it coaches people. Thereby it would be more interesting to measure value of the persons, the alumni entrepreneurs, who went through the incubation program. Purpose: Explore how an incubators value can be measured through the individuals who have gone through the incubation program Methodology: Inductive research approach. Literature review followed by qualitative data collection through interviews and surveys. Development of a measurement system which was partly tested through a case study Conclusion: A good measurement system should measure both financials and non-financials and be closely connected to the goal of the organization. Using the alumni entrepreneurs as starting point for measurements is relevant both according to large amount of literature and empirical evidence. But, what to measure and how to do it is not easy, and impact on total value as well as time and resources available needs to be considered.

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