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Articles and news from ACCN on entrepreneurship, innovation, and the everyday life of those who build businesses.

Historic industrial warehouse, the first incubator concept

What are incubators, and how did they emerge?

A business incubator — or simply an incubator — can be a project or a company structured to create and develop other companies or businesses, supporting them in the earliest stages of their lives or in their restructuring stages.

The concept of incubating or assisting began in the United States in 1959, when Joseph Mancuso opened the Batavia Industrial Center, a partitioned warehouse in Batavia, New York. The process expanded in the 1980s and soon spread across the United Kingdom and Europe, in many different formats — innovation centers, research hubs, technology parks, and business-recycling centers.

In Brazil, the first incubators appeared in the mid-1980s through the initiative of Professor Linaldo Cavalcanti, then president of the CNPq, who created five foundations in Campina Grande (PB), Manaus (AM), São Carlos (SP), Porto Alegre (RS), and Florianópolis (SC).

Consolidation in Rio de Janeiro came with the International Seminar of 1987, when the National Association of Entities Promoting Advanced Technology Enterprises (ANPROTEC) emerged.

Only from 2007 did Brazil set aside the notion that incubation was exclusive to technology businesses, coming to understand that the incubation model was essential to the success of new businesses and of those needing renewal. Today, according to the National Business Incubation Association, it is estimated that there are more than 10,000 incubated companies around the world, 4,000 of them in Brazil.

Growth chart over the city skyline

Why and when to incubate

According to research from the US Economic Development Administration, which funds incubation programs across several continents, starting a business without a detailed, careful analysis of every point and particularity — and, no less important, without a business and investment plan — is the cause of more than 40% of business closures, a figure nearly doubled when it comes to Brazil and Latin-language countries.

Beyond all the reasons set out in the 8 pillars our Association offers, together with the featured tools and the figures already mentioned, incubation processes generate, in the places where they are established, growth points that — according to the World Bank and the finance departments of large organizations such as UNIDO — can reach 1,400% economic growth over a 10-year period, notably including:

  • creation of jobs and wealth;
  • fostering of the entrepreneurial community;
  • commercialization of technology;
  • diversification of the local economy;
  • building or accelerating the growth of industries and other local and surrounding sectors;
  • creation and retention of businesses;
  • revitalization of the community.

It is worth noting that, in many countries, incubation programs are mostly government-funded as part of an economic-development strategy. A standout is the birthplace itself, the United States, which — in addition to full government incentive — encourages investment groups and private initiatives to allocate resources to incubated businesses.

A green seedling sprouting in hands, growth amid crisis

Entrepreneurship and innovation in times of crisis

Do you know what a business incubator is? It can be understood as a mechanism that stimulates the creation of enterprises, helping the entrepreneur both in developing the business and in creating and producing a new product. A business incubator has the same purpose as a maternity ward: it creates a protective environment for the business, ensuring gradual, sustained growth.

It is in this context that the business incubator plays a major role, all the more so given the current market landscape. A crisis is also a moment of opportunity — to discover talent and combine skills, knowledge, and the will to make things happen. With this outlook of continuous discovery and change, ACCN Business Incubator plays an important role in innovation, where entrepreneurial action contributes to more jobs, more income, and consequently economic and social development. With a distinctive methodology, ACCN keeps beating the crisis and generating successful companies, offering just the right support and setting objectives and goals more precisely and coherently.

The search for guidance and support for enterprises has become a constant need these days. During incubation, the incubator carries out periodic follow-up to assess the companies' level of development. Success in entrepreneurship is tied to change, and every change is a matter of choice. It is extremely important to have, in that partnership, a successful incubator, since this attracts more resources to the incubated companies and adds credibility to them. And you — what are you waiting for to take your idea off the page and start your great project with us?

An empty retail store with no customers

Consumer wanted

Amid so many difficulties and the setbacks of the economy, inflamed by the endless political crisis, the retail shopkeeper — a true tightrope walker — keeps doing their part, seeking a way out where there seems to be none, fighting to keep jobs and their own business alive. On top of that, commerce must still face the unfair competition of the informal market, which punishes those who pay taxes and generate jobs, and outdated laws and regulations that no longer make sense today. All of it expensive, useless bureaucratic demands, at a time when the country's watchwords are growth and development to keep the virtuous circle of a battered economy turning — an economy that, to recover, must count on the expansion of productive sectors, ever more crushed by measures that ignore the difficulties companies face.

Such a scenario shows how much the productive sectors, especially commerce, are being severely penalized by the political and economic crisis, which created a highly adverse environment for the consumer. Because of this, the customer has vanished from the stores, pushed away by rising unemployment, high inflation, and lack of credit. A recent survey by Boa Vista SCPC (the Central Credit Protection Service) reveals a worrying figure: upon clearing their name from the negative registry, 84% of consumers said they do not intend to make new purchases in the next three months.

That old premise that the lower the price, the more consumers — and thus market growth, full stores, guaranteed profits, and happy customers — needs to be reconsidered given the current picture. In truth, the consumer has vanished. There is no mood, no willingness, and no money, however great the merchants' efforts to attract them.

A connected consumer using a smartphone

Changing habits — how to win over the increasingly demanding, connected consumer

In the wake of rapid technological transformations and the ever-greater reach of digital media, retail has been undergoing profound changes worldwide. If knowing the customer well was important before, it has now become even more necessary — a matter of survival. Understanding these changes, spotting opportunities, and implementing actions to win over the consumer is the permanent challenge of retail companies and brands. In Brazil, beyond the strong influence of technological innovation, the political and economic landscape is also a decisive factor in the changing habits of a consumer who is more demanding, better informed, and more attentive to spending.

Uncertain of what lies ahead, the consumer holds back, avoids spending beyond what is needed, swaps preferred brands for cheaper ones or ones with added value, and invests only in what really matters to them. They do not want to give up their standard of living, but they must decide with balance in times of economic uncertainty. With this outlook, the consumer is reinventing themselves — and so are brands, to serve them according to their new desires.

What you want to say, what you believe in, and how you make the world better

According to TrendWatching, an agency that identifies and analyzes consumer trends in more than 180 countries, the future still belongs to those who believe in progress — and progress comes through innovation. In an interview with Endeavor Brasil, TrendWatching's trends strategist for South and Central America, Luciana Stein, listed five aspects that should serve, more than ever, as pillars for innovation: transparency, aspiration, positive impact, tolerance, and empowerment. She argues that, by drawing on one or more of these "truths," a company grounds its innovation in something meaningful and lasting.

Transparency — A Havas survey of more than 10,000 consumers worldwide found that, for 78% of them, it is "somewhat or very important for a company to be transparent," and 70% said they now "make a point of knowing more about the companies they buy from." The line between what is internal and external to the business is disappearing: internal processes, culture, and values are public property and part of the brand. This means speaking the consumers' language — fast, practical, informal — and connecting them to their peers, because they trust one another's information more than yours.

Aspiration — With the rise of social media, the pursuit of status grows and intensifies, alongside the emergence of a truly global middle class. More than the ambition to have, aspiration is about being: more beautiful, healthier, smarter, with more followers. How can you use your expertise to get closer to this consumer? Again, one answer is to connect your consumers to one another.

Positive impact — Acting with transparency and ethics, investing in innovation models that prioritize the environment and social well-being, is the path for companies seeking longevity. Creating positive impact and positive brand value is what places a brand in the future.

Tolerance — Of different social contexts, lifestyles, choices, and identities. Many brands have already noticed this and signal the change to their consumers through new products, campaigns, and advertising built on tolerance for differences.

Empowerment — According to Luciana Stein, this is the most far-reaching truth, as it encompasses the others. "We are in the middle of an epic power shift, moving from institutions — read government, media, and big companies — to the individual," she noted. "By putting one of these truths into practice, a company empowers individuals to take control of their lives, their shared spaces, and institutions, as well as their own future." And she concludes: "Which, in turn, is the best way to guarantee a bright future for your brand."

Source: Revista O Lojista, May/June 2017.

The largest networking event ever held in the world

Launch of BNI groups in Rio de Janeiro. On October 14, 2016, the first 4 groups of entrepreneurs will be launched in the city of Rio de Janeiro. On this single day, we will announce to society the start of operations of 4 teams: BNI 2Connect, BNI Alpha, BNI Fiduciam, and BNI Atitude. We will host more than 1,500 entrepreneurs and professionals from various sectors of the city and region, in the largest BNI event ever organized.

BNI — Business Network International — is the largest and most successful business-referral organization in the world. For more than 31 years, thousands of entrepreneurs worldwide have committed to their groups to build valuable, lasting relationships of trust, providing high-quality services or products. The essence of BNI lies in the qualified exchange of business opportunities, through the sharing of knowledge and experience with partners and investors.

Entrepreneurs at the Onda Empreendedora launch

Launch of Onda Empreendedora

On October 18, 2017, we held the launch of the 2nd phase of Onda Empreendedora, a regional entrepreneurial ecosystem, bringing together more than 50 entrepreneurs at the CDL in Niterói.

See all the photos from this event on our Facebook page.

Impressionist watercolor of Rio de Janeiro

De León in Rio

For the first time in Brazil, the impressionist works of Uruguayan painter Marcelo de León, brought here by ACCN. His works, in canvas and watercolor, portray the local beauty of places around the world and have already been exhibited in more than 12 countries — and will be shown in galleries and malls in Rio de Janeiro.

De León will also create live paintings and watercolors of landmarks and landscapes, which can be personalized. Those who appreciate fine art and wish to own one or more works may reserve a finished piece or the privilege of unique, special works made exclusively. We have a limited number of 20 personalized works.

Anyone interested may contact us, and we will make a reservation with the person responsible for the Montevideo–Rio Connection project via the email contato@accn.com.br or by phone at +55 (21) 2502-0624 and +55 (21) 98194-0540.

Ana Tex New Media Workshop

Ana Tex New Media Workshop

Our director, Luiz Birman, had the pleasure of presenting ACCN — Cidade Nova Commercial Association — to the entrepreneurs attending the Ana Tex New Media Workshop. Much of the business community is unaware of the purpose of a business incubator and its positive commercial impact.

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