Financial Performance Measurement of Non-Profit TBI’s: Through Balance Scorecard Approach

Abstract

The concept of Business Incubator and Incubation has been promoted, advocated and practiced with a great zeal by academicians, administrators, policy makers and politicians too. Since the initial days of Business incubation concept at ‘Industrial Centre of Batavia’ at New York in 1958 the concept travelled across globe and been evolved too. There are different names for it, depending upon its background, funding agency, agenda etc. In India it is popularly known as Technology Business Incubator (TBI). Being developing country India started it late but prioritized it aggressively as an economy booster agency. Like any other developed country India too has different types of business incubators but among them central government sponsored and non-profit TBIs are in majority and widely scattered according to geographical diversity of India. As immense government funding are dedicated to TBIs their performance measurement are obviously desired. There are different notion of performance measurement of business incubators and most of them are overlapping or contradicting, we identified the approach of balanced scorecard most suitable and based on its ideology adopted a set of scale to measure TBI’s performance. This paper mostly elaborates the one construct called “Financial” – Local Ecosystem Development (LED) out of four: LED, “Customer” - Tenant Client Satisfaction (TCS), “Internal Business Process” - Business Incubation Process (BIP), and “Learning and Growth” - Learning for Holistic Development (LHD). Extensive and structured literature review has been performed to develop appropriate constructs according to balanced scorecard further Experts from major TBI’s from across country have participated in multi-phase interaction, semi structured interview for the development of scale to measure TBI’s performance.