A specialist in the product development space, Tanul came on-board Afthonia in 2018, prior to which she was associated with Godrej Soaps, 123 India, Inox, VSNL, Reliance Communications, and PayMate across various roles and capacities. She is passionate about entrepreneurship and had also established an online food service startup named Eatelish in 2012.

Anybody can start-up in any part of the country today. India’s startup ecosystem has grown significantly beyond the hubs in Bengaluru, Gurugram and Mumbai, spreading its wings to tier-II and tier-III cities. In fact, 48 percent of all startups in the country are based out of tier-II & III cities, according to the Economic Survey 2022-23 that was recently tabled in the Parliament. One of the largest propellants of startups in these cities is ‘Incubation’. Behind the very successful stories of tier-II and tier-III startups is the might of incubators helping entrepreneurs build and scale businesses.

In simple terms, incubators are institutions or entities that help entrepreneurs in early stages to build their businesses. Today, most educational institutes of national repute such as IITs and NITs have incubators on campus to help students, alumni and faculty start-up. As the name suggests, incubators hand-hold entrepreneurs through the process of ideating, innovating, setting-up a business and even scaling-up. Over the initial months or even years, incubators help entrepreneurs take a strap from idea to reality.

Here are five reasons why incubators are the best things to happen to startups in tier-II and tier-III cities –

Access: If you are building a business, especially in a town, access is everything but can be limited. For early stage startups, mundane tasks such as finding an office space or access to the latest technology can be a challenge. Access to resources, funds, technology and even administrative support is key to the growth of a business. Incubators can help startups bridge any gaps in access to resources such as office space, administrative functions, education & mentorship, access to investors & capital, and idea generation. Most incubators offer space and mentorship to up and coming entrepreneurs within their premises.

Mentorship: Starting a business can be challenging, and scaling-up is more so. Entrepreneurs often need a nudge in the right direction from experts, investors and guides. Almost all entrepreneurs will agree that mentorship is one of the greatest advantages of an incubation program. Industry experts & investors regularly interact with startups and guide them on market requirements, product development, launch strategies, funds-raising plans, scaling plans and much more. Incubators bring-in a host of such mentors and guides to startups under one roof. For technology startups, on-campus faculty members provide a great deal of guidance and help fine tune any glitches.

Networking is a key advantage that incubators offer to their startups, especially in tier-II and tier-III cities where it can be difficult to find support and partnership

Networking: Startups need an ecosystem to thrive. This ecosystem often consists of technologists, investors, sponsors, collaborators and industry. Incubators provide startups with avenues to access and create this ecosystem. Incubators host events such as startup mixers and investor summits where startups can find additional resources such as financial support, partnerships and collaborations. Incubators also help startups find other startups within the industry so they can work in partnership to create new ideas. Networking is a key advantage that incubators offer to their startups, especially in tier-II and tier-III cities where it can be difficult to find support and partnership.

Funds: While tier-II and tier-III cities are home to a huge number of startups, they received just 1.4 percent of the cumulative funding between 2019 and 2022, according to Tracxn. Funds can be challenging to procure in non-metro cities where investors are few and far apart. For startups, funds are indispensable at every stage. However, seed funds and initial growth funds are needed to build the foundation of a startup. Incubators provide early stage startups with these seed funds and initial growth funds. Incubators also help startups secure funds from various government schemes and programs for startups at various stages. Incubators also introduce startups to various foundations & organizations across industries that invest in startups and have programs for accelerations. Additionally, they also open the doors for startups to accelerators, venture capitalists and angel investors.

Special Tools: In most cases, startups accepted into incubator programs relocate to a specific geographic area to take advantage of the resources and opportunities provided by the incubator. Incubators provide startups with specialized tools needed for startups to grow and innovate. Startups incubated on campus have access to state-of-the-art laboratories to innovate and give shape to their ideas. Another advantage that incubators offer is the exposure to potential customers, partners and investors that they may not have had access to otherwise, especially in a non-metro city. Incubators also provide access to compliance services from professionals such as accountants and lawyers.