Implementation Guidelines for Processing Manufacturing TBI Model

36 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators

6.3. Implementation Guidelines for Processing Manufacturing TBI Model

6.3.1. Initiation Organization and Recruitment of Management Staff

TBI management team is key to the success and sustainability of the TBI. Therefore, TBI founders need to choose TBI management team carefully. The management team needs to meet the following requirements: 1. Understand the concept of a business TBI and development. 2. Combines people from multidisciplinary such as processing, manufacturing, and economics. 3. Consists of people who are skilled and competent in their respective fields. 4. Teamwork that can work together. 5. Dedicated to the development of business TBIs and SME incubatees. TBI organizational structure for new TBI is best to be flexible, in which each person has a clear job duties, but allows collaboration and co-management if the other staff is absent or getting overloaded with task. Notes: Assistant managers could be as many as a TBI need, but it is recommended that a new TBI starts with a lean management. Examples of Personnel Qualification and Job Description No Position Educational Qualifications Job description 1 Manager Minimum Master degree in related Technology 1. Manage and responsible for the whole operation of the TBI. 2. Networking with the resources institutions and the other TBIs nationally and internationally. 3. Set up strategy policies with the assistant manag- ers internally, and with the Board Advisory Committee, etc ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 37 No Position Educational Qualifications Job description 2 Assistant Manager Program Minimum Bachelor degree in Related industrial Technology 1. Formulation and Implementation Program, 2. Conduct recruitment for new incubatees. 3. Design and run the consultancy pattern for each incubatee based on their own needs. 4. Assistance in Production Technology, IPRetc. 5. Develop SOPs 3 Assistant Manager Business Minimum Bachelor degree in Business Management 1. Develop proposal for funding sponsor 2. Preparation of Business Plan 3. Mentoring business management and Financial Consulting 4. Finance Accessibility, marketing, networking etc. 5. Develop SOPs 4 Administration staff Minimum diploma degree in economic management Manage administration and Finance TBI 5 Technician Minimum Diploma degree in engineering Maintaining for TBI building and facilities including machinery and production equipment TBI Manager and Management Staffs TBI manager and management staffs should have a high commitment in running the TBI operations and work full time at the TBI as full staff. Mentors Mentors could be chosen by outsourcing based on expertise needed, practitioners, graduated and successful incubatees. Mentors must have technical expertise in the field of production, as well as practical business management so that will be very helpful in incubation activities.

6.3.2. Start Operation Recruitment of TBI Managers

TBI manager recruitment process can consider the following process: i. Prepare job description of the processing and manufacturing TBI manager ii. Identify and prepare minimum qualifications. This includes education, experience, basic knowledge on processing and manufacturing business, personal character, etc. iii. Prepare and announce vacancy on related media iv. Preparing application screening criteria and process. v. Prepare questions for interviews vi. Conduct interview by team selection vii. Make decision and conduct reference check on the selected candidate viii. Conduct orientation program and training program ix. Probation period Training for TBI Managers As a Management Team that serves to provide the incubationcoaching for incubatees, promoting the TBI, forming networks with stakeholders, government, industry, banking and markets, every team member needs to gain skills as a speaker and persuasive ideas presenter. 38 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators The training materials for capacity building of TBI managers could be adopted from the infoDev- World Bank Training Program, among others are Business TBI Basics and Principles, Incubatee Recruitment and Evaluation, Managing Business TBI, Mentoring Program, and Financing for TBI. Preparation of Regulations and SOPs for Incubation Program Regulations and SOPs inside a TBI should be made to keep the harmony and continuity between TBI, incubatees, as well as other stakeholders in the incubation programs and activities. Regulations must fulfill the rights and obligations of each party as listed in the Incubatee Agreement. Some SOPs should be developed including like the SOP for Incubatees Selection, SOP for Incubation activities, and SOP for Finance Facilitation. Legal Aspect TBI must have a clear legal framework, by a decree issued by the host institution be it a university, government unit, or other institution where the TBI is founded. i. Fulfilling of legal requirement of TBI establishment Internal and external requirements • Permits from related authorities • Environmental impact ii. Policy endorsement from institution • Selection guidelines abide to related policy and regulations • Mentoring during incubation process • Tenant incubation services agreementsTenant Lease agreements. This agreement generally covers the following: - The space and facilities to be provided and procedures for modification - The pricing policies for space and services such as IT, equipment, common services, etc. - Payment modalitiestypes - Duration of the contract including options for early exitextension subject to the terms of the overall graduation policy - Procedures for setting development objectives and monitoring progress towards these objectives - Exit policy if progress milestones aren’t met or non-compliance with other contractual obligations Incubatees Recruitment Selection and Recruitment of incubateesare the most important stages in incubation activities in order to create successful incubatees forward. Some of the requirements of prospective incubatees TBI include: 1. College graduates S1, S2, S3, 2. Have great ideas to create innovative products 3. The business has been running at least 1 year 4. Possessing both strong motivation and characters as entrepreneurs 5. Owning business plans with excellent prospect of product. ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 39 The following chart presents an example of Incubatees Selection process. Start Incubation Incubation may consist of 3 stages:1 Pre-incubation, 2 Incubation, and 3 Post-Incubation. Pre-Incubation Pre-incubation stage begins with empowerment theory, the activities in the classroom, simulations and business testimonials. In this stage, incubatees will be trained with several materialstopics as follows: a. Production and processing technology b. Method of making a business plan c. Organizing business, d. Business management, including marketing and finance, control techniques, monitoring and evaluation. e. Development of innovative and entrepreneurial spirit Incubation IncubationMentoring activities include consultation for production technology, business management, marketing, business plan preparation, legal aspects, financing facilitation, exhibition, business meeting etc. a. For technology, the TBI helps in transferring the technology transfer from universities to the incubatee. b. For incubatees who need additional loan, TBIs facilitate the financing of the program either from the government or other financial sources such as banks, to support the development of incubatee business. c. Since the businesses in the field of processing and manufacturing have high risks, the incubation period could be done for 3years. d. Development of co-incubation program and soft landing. 40 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators Incubatees Exit Strategy Exits can be seen from the two 2 aspects, namely “Pass” and “Exit”. Pass means Incubatees who graduated during the incubation period means that the incubatee’s business has been able to evolve independently so that they could get out of the TBI and continue the business activities outside the TBI. While “Exit” means that the incubate failed and removed from the TBI before the incubation period is complete. Some of the criteria or indicators of “pass” SME incubatees are the increase in terms of : a. Improving the quality and competitiveness of products b. Increase production capacity c. Improved work ethic, including the addition of labor d. Marketing area expansion Exit policy for incubatees in various milestones is written in the contract between TBI and incubates. Post incubation Post incubation program include: 1 Marketing outreach: national and international, 2 Access to market, 3 Access to finance, and 4 Consultation

6.3.3. Incubator Development Ecosystem Development

In order to achieve long-term sustainable success, TBI should consider the whole ecosystem that ideally will grow processing and manufacturing incubateesto its maximum performance. TBI should has strong network with within the ecosystem to bring the incubatees to later stage of growth. ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 41 Networking Establishment of networks is one of the key success of an TBI. Example of the important networks: Networks Roles Government Policy, Grant Programs Financial Institution Soft loan with low interest University, R n D Center - Access topilot plant, equipment, and labs - Access to technology - Access to experts and researchers National and international organiza- tion National : AIBI International : APIN, infoDev, AABI, SPICA, Inwent etc - Capacity building training for the TBI managers - Business Matching - Annual Meeting - Grant Programs, - Networking Other TBI Co incubation program Industry, Industrial Association, STP Provide candidates of buyers and customers

6.4. Implementation Guidelines for Virtual TBI Model