Business incubation and external financing are essential for the success of a new venture. Business incubators and student incubators commonly provide a range of services such as free or subsidised premises, access to laboratories and research facilities, prototyping, IT, secretarial support and networking. They also provide additional services such as mentoring, coaching and training.

Different models of incubation facilities exist, ranging from facilities on campus, within departments or in separate locations, to off-campus spaces, sometimes within science and technology parks. Alumni-tenants can be important knowledge partners for the incubator and its tenant firms, serving as marketing channels, network intermediaries, tutors, sponsors and investors. Many HEIs have on-campus incubation facilities that:

• Offer free or subsidised premises for student businesses
• Provide access to laboratories
• Research facilities and IT services
• Coaching, mentoring and training

Those HEIs that have onsite facilities need to ensure that students are aware of them and that they have access to the services they need. To raise awareness about available services, incubators could work with academic staff to raise their profile on- and off-campus and undertake outreach campaigns through the campus media (e.g., newspapers, radio, e-newsletters).

Higher education institutions that do not have on-campus incubators can be effective at supporting student entrepreneurs by building linkages with off-campus incubators and start-up support services. However, HEIs need to promote these relationships on campus so students are aware of this possibility, and academic staff and career centres can direct students to the appropriate support services.

External financing, which is also available through incubators and accelerators, allows investment for feasibility and market studies, product and prototype development such as proof of concept funding, for initial production or for offering the founders some living income before their first revenues are generated. Facilitating access to private financing, for both student and graduate entrepreneurs, is essential to help HEIs develop an entrepreneurial ecosystem. Different approaches are used in HEIs and this is often determined by the local context and the strength of the local economy. Possible approaches include:

• Bringing student entrepreneurs and investors together in networking events
• Building relationships with local financiers to facilitate access to microcredit for student and graduate entrepreneurs
• Educating about the potential of crowdfunding
• Business competitions and pitching events, where students must sell their ideas to professional businesspeople and investors in a very short time period

Events and competitions can award prizes which offer an incentive for students to participate. Larger HEIs may have the resources to create seed funds for student businesses and award funds through a competitive process.