How Pre-Incubation and Incubation in MBA Programs Drive Startup Success
India’s startup ecosystem is booming with 122 unicorns as of May 2025, these ventures have raised over $115 billion and boast a collective valuation of $363 billion, as per Inc42.com post.
While this signals a massive opportunity, it also reflects growing competition and complexity in the startup world. To thrive in such an environment, incubation and pre-incubation in MBA programs are proving to be game-changers for aspiring entrepreneurs.
Understanding Pre-Incubation
Pre-incubation in MBA programs acts as a launchpad for budding entrepreneurs still at the ideation stage. It’s designed to help students validate their ideas, build basic prototypes, and understand market needs through mentorship, access to networks, and foundational workshops.
Pre-incubation focuses on refining business models, assessing feasibility, and preparing students for more rigorous incubation phases. Think of it as the blueprinting stage, where creative sparks are channelled into structured concepts.
What is Incubation in MBA Programs?
Once an idea is validated and shaped during pre-incubation, it enters the incubation phase, a more intensive, resource-driven process that supports actual business execution. Here, startups receive access to co-working spaces, seed funding opportunities, technical mentorship, legal support, investor connections, and advanced business mentoring.
Incubation helps translate business plans into market-ready ventures and is often the stage where the company formally registers and begins generating revenue or seeking investments.
Key Differences Between Pre-Incubation and Incubation
Pre-Incubation
At this stage, the focus is on idea discovery and validation. Students explore real-world problems, brainstorm solutions, and test early assumptions with the help of mentors. It’s a low-risk environment to experiment, pivot, and evolve a viable concept. Emphasis is placed on learning lean startup principles, customer discovery, and market research.
Incubation
This phase involves business building and scaling. Entrepreneurs are provided with resources and structured programs to launch their ventures. The environment encourages fundraising, pilot launches, team building, and navigating early challenges. Incubation transforms a promising idea into an operational startup through hands-on support and market exposure.
| Feature | Pre-Incubation | Incubation |
|---|---|---|
| Stage of Idea | Ideation and Validation | Execution and Scaling |
| Focus | Problem discovery, prototype development | Business operations, market entry |
| Support Provided | Mentorship, training, and networking | Office space, funding, expert mentorship |
| Duration | Short-term (weeks to a few months) | Medium to long-term (6–18 months) |
| Outcome | Validated idea, early business model | Launched a startup, market-ready product/service |
The Success Stories of MIT-ADT Alumni with Entrepreneurial Ventures
At MIT Art, Design and Technology University (MIT-ADT), entrepreneurship isn’t just taught, it’s lived and practised. Our alumni like Ankita Shroff, co-founder of Sustain and Save, and Yash Parmar, founder of AUFLA, exemplify how MIT’s supportive ecosystem can transform ideas into impactful ventures.
Ankita Shroff (MIT-WPU, Class of 2006–2010, Computer Science) is a shining example of how early-stage support can spark lasting impact. As co-founder of Sustain and Save, Ankita leveraged the insights and entrepreneurial grooming she received at MIT-WPU to build a company that champions sustainability in the built environment. Sustain and Save offers consultancy and certification services to promote green building practices, demonstrating how socially responsible ventures can thrive with the right mentorship and backing.
Yash Parmar, a 2018 BBA graduate, is the founder of AUFLA, an innovative startup known for its smart electric cooker. His company gained global recognition by winning the Global LEAP Award in 2020 for energy efficiency. AUFLA aims to revolutionise home cooking with automated, safe, and user-friendly appliances, particularly designed to empower women. Yash’s journey underscores the role of structured incubation in turning a student-led idea into an award-winning, impact-driven business.
Role of Business Schools in Facilitating Startup Success
Business schools today are evolving into startup hubs, offering far more than academic degrees. They are actively shaping the next generation of founders through structured support systems and experiential learning platforms.
Dedicated Innovation & Entrepreneurship Cell
These in-house centres help identify, nurture, and support student-led startups right from ideation to execution, offering curated resources and dedicated faculty support.
Access to Mentors & Industry Experts
Students gain guidance from successful entrepreneurs, investors, and domain experts who provide practical insights and strategic advice that textbooks alone can’t deliver.
Incubation & Funding Opportunities
Business schools often collaborate with government and private accelerators, offering access to seed funding, incubation facilities, and investor networks.
Hands-on Learning Through Live Projects
Students are encouraged to work on real-world challenges, pitch their ideas to industry, and build MVPs, ensuring they learn by doing, not just by reading.
Legal and Compliance Support
From company registration to IP rights and regulatory compliance, schools offer dedicated sessions or legal clinics to help navigate the formalities of setting up a venture.
Networking and Pitch Events
Regular hackathons, demo days, and startup showcases connect student entrepreneurs with VCs, angel investors, and business leaders.
Skill-Development Workshops
These workshops focus on entrepreneurial essentials like business model design, marketing strategy, financial planning, and negotiation skills, equipping students to face startup realities with confidence.
Alumni Support & Peer Learning
A thriving alumni network often acts as a powerful support system, with former students sharing their journeys, failures, and learnings to inspire the current batch.
Why Startups Fail Without These Supports
According to TICE News, 90% of Indian startups fail within the first five years, often due to avoidable pitfalls such as poor market understanding, weak business models, lack of funding, and inadequate mentorship. Here are the main reasons why startups often fail in India:
- Many startups fail because they build products or services without a validated market need, leading to poor product-market fit.
- A significant number of ventures collapse due to running out of cash or poor financial management, unable to sustain operations or secure further funding.
- Weak leadership and unresolved team conflicts frequently undermine a startup’s ability to execute effectively and adapt to challenges.
- Intense competition and an inability to differentiate their offerings make it difficult for new startups to gain and retain market share.
Key Takeaways
In the rapidly evolving startup ecosystem, talent alone isn’t enough; timely guidance, resources, and a nurturing environment are just as critical. Pre-incubation and incubation in MBA programs are designed to bridge this gap, enabling young entrepreneurs to build ventures that are not just innovative, but also resilient, scalable, and impactful.
At MIT-ADT, we take pride in offering a startup-friendly ecosystem that empowers our students to turn their ideas into reality. We offer incubation support, expert mentorship, and hands-on learning through real-world projects to bridge the gap between classroom ideas and real-world execution.
Our MBA for Startup programs are designed to equip students with the essential tools and confidence to turn innovative concepts into viable ventures.
