Dalian Venture Workshop Technology Service Co., Ltd.: Business Incubation in China
(6 pages of text)
Founded in 2012 in Dalian, Liaoning Province, China, Dalian Venture Workshop Technology Service Co., Ltd. (Venture Workshop) was a business incubator that provided early stage start-ups with incubation and investment services. In 2014, China identified Venture Workshop as a “state-level technology business incubator.” By 2017, Venture Workshop had become the largest incubator in Northeast China. However, behind its prosperity, it had faced years of losses. Since its establishment in 2012, its only source of income was the fees it charged for renting office space to start-ups. Its standard rates were far lower than market prices, which made it difficult for Venture Workshop to generate sufficient income. In February 2018, the chairman of Venture Workshop needed to increase Venture Workshop's income and avoid subsequent years of losses. What was the best strategy to pursue?
This case is intended for graduate and executive courses in entrepreneurial management. The case will help students familiarize themselves with the development of business incubators in China and how incubators support start-ups. Working through the case will give students the opportunity to understand the following:
- The standards incubators use for screening start-ups.
- The services incubators provide for start-ups, including infrastructure, business support, and mediation services.
- The income channels for incubators, including office space rental fees, service fees, and return on investment.
China, Small, 2018
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