University Business Incubators: Fostering Entrepreneurship in Palestine

In the dynamic landscape of Palestine's universities, the role of universities must transcend the boundaries of traditional academia. As pillars of innovation and entrepreneurship, university business incubators must transform how higher education institutions contribute to economic growth, innovation, and youth empowerment. These business hubs, innovation spaces, and incubators should nurture a culture of innovation and enterprise. 

This article sheds light on the important functions, challenges, and collaborative efforts of university business incubators in Palestine. As a starting point for our blog, we define incubators as collaborative spaces within academic institutions that nurture and support startups by providing resources, training, mentorship, and networking opportunities, enabling aspiring entrepreneurs to develop and refine their ideas into viable businesses. 

The Evolution of University Incubators

In 2007, the concept of university-based business incubators entered Palestine's entrepreneurial landscape, initiated through centers of excellence within universities such as Palestine Polytechnic University in Hebron, the Islamic University in Gaza, and An-Najah National University in Nablus. Palestine's Information and Communications Technology Incubator (PICTI) played a key role in bringing this concept to reality during that period. However, the sustainability of these incubators faced intermittent challenges, with some experiencing extended periods of inactivity. This trend persisted until new initiatives emerged in 2010, driven by additional university-based incubators led by Birzeit University. These endeavors were generously supported by funding from the SPARK Foundation.

These university-based incubators required considerable time to shape the entrepreneurial mindset within the universities. This involved not only cultivating and nurturing human resources but also establishing a network of trainers and business mentors proficient in incubation system management. The ultimate goal was to offer comprehensive services, spanning from idea generation to seed funding and incubation services.

After 2011, incubators made significant progress, widening their support beyond the confines of university campuses and targeting entrepreneurs aged 18 to 35, emphasizing on empowering women across all age groups.

According to the Palestinian Entrepreneurship Index III, released in 2021, university-based incubators constitute 40% of the total incubators operating in Palestine. This statistic demonstrates their importance within the Palestinian entrepreneurial ecosystem.  

Mapping the Present: The State of Palestinian University Incubators

Palestinian higher education institutions have been striving beyond academia to become important parts of the entrepreneurship ecosystem. They're focusing on enterprising teaching methods and fostering innovative thinking. The shift is also noticeable in universities' strategic plans and their updated vision statements related to entrepreneurship. A good example is Palestine Polytechnic University's vision, which is articulated as "Towards a Science, Technology, and Innovation Entrepreneurial University."

The importance of these incubators lies not only in their role in providing essential resources such as mentorship and shared spaces needed to shape ideas into viable, real-world ventures, but also in their capacity to instill a culture of innovation within the academic community. As students and researchers engage more closely with the entrepreneurial process, they gain invaluable insights into problem-solving, risk-taking, and adaptability.

By fostering an environment that encourages innovation and supporting technological advancements, Palestinian university business incubators have a really important job of supporting students and graduates to pursue their entrepreneurial dreams providing access to physical infrastructure and resources, as well as experts coaches and mentors.

Incubators also facilitate access to networks and potential partners, in addition to the training programs, workshops, and bootcamps they provide to equip entrepreneurs with the necessary skills and competencies for running the startup successfully. Beyond nurturing early-stage startups, these incubators also act as a stepping stone, guiding promising startups into later-stage and more advanced support systems like accelerators or advanced-stage incubators.

An important role that is overlooked within universities is bridging the gap between academia and industry. By translating academic research into viable, marketable products or services, university business incubators enable the research commercialization of cutting-edge ideas. This reinforces the practical relevance of academic research, ensuring that theoretical knowledge finds tangible applications in the real world, thereby contributing to the overall advancement of entrepreneurship and innovation in Palestine.

It is worth noting that Palestinian university business incubators have implemented numerous programs aimed at supporting young entrepreneurs, resulting in the graduation of thousands of potential entrepreneurs. While not all of them achieved their full potential during the students' time at the university (further research and study is needed on this issue), many graduates from these programs have gained the essential skills and competencies necessary to work on more mature businesses after graduation.  

Various challenges affect incubators efforts to foster entrepreneurship, these include:

• Limited funding: This puts the sustainability of these incubators at risk. Since these organizations heavily rely on university funds to cover their main operating costs, the stoppage of funding programs from international donors could disrupt their operations and activities. 
• Startups and entrepreneurs need to recognize the value of incubators: Many young entrepreneurs evaluate university incubators based on their ability to secure grants and provide seed funds for them. 
• Shortage of qualified staff to run these incubators: University incubators often struggle with expertise and operate with a small number of staff which often harms their capacity and competitive value. 
• Cultural hurdles: Fear of taking risks can discourage new entrepreneurs, which might hold back startups, especially for women who face extra obstacles due to prevailing gender dynamics.
• Lack of clear governmental affiliation: The question arises whether these incubators fall under the jurisdiction of the Ministry of Entrepreneurship and Empowerment, the Ministry of Higher Education and Scientific Research, the Higher Council for Innovation and Excellence, or others. The lack of clarity can lead to confusion and prevent support and attribution.
• The private sector's uncertainty regarding higher education outcomes and their refusal to take risks in investing in startups prevents the growth of spinoffs. This mindset also prevents academia from collaborating with businesses and impedes the flow of innovation, technology transfer, and industry exposure.
• While Palestinian universities have established business incubators on their campuses, their primary operations remain rooted in the conventional academic sphere. However, there are a few exceptions among certain university-affiliated incubators.

Overcoming these cultural, social, and policy barriers requires not only educational efforts to change mindsets, but also creating an environment that supports innovation and risk-taking.

To further enhance the impact of university-based business incubators in Palestine, overcome challenges, and contribute significantly to the growth of entrepreneurship and innovation in the country, we strongly endorse the implementation of the following recommendations:

• Enhance funding opportunities: To ensure university-based business incubators’ sustainability, exploring diverse funding sources beyond relying solely on international donors is crucial. This could involve collaborating with private sector partners and the government to secure consistent financial support for their operations.
• Invest in human resources: Address the shortage of qualified staff by investing in training and attracting experienced professionals to manage and mentor within the incubators. At the same time, emphasizing the necessity to rely on the accumulated expertise of the sector's workforce.
• Promote risk-taking culture: Overcoming the fear of taking risks is essential for fostering entrepreneurship. Implement initiatives that motivate the private sector to engage in entrepreneurship by embracing well-calculated risks and fostering innovative thinking.
• Clarify governmental oversight: Establish clear guidelines regarding the government's role in overseeing university-based incubators. Defining whether these incubators fall under the Ministry of Entrepreneurship and Empowerment, the Ministry of Higher Education, or other relevant bodies will provide clarity, prevent confusion, and enable effective collaboration.