BUSINESS INCUBATION ANALYSIS WITH THE HELP OF REAL OPTION THEORY

Sa？etak The start-up companies’ evaluation needs to start with the analysis of the business incubation process. Business incubation has the potential to apply real options that support the identification and exploitation of possible new businesses and can be the new start-ups’ source of success. The incubator could be described as an entrepreneurial firm that creates real options by selecting new, young or emerging ventures and it could exercise these real options by monitoring and coaching the participants through different development stages. The business incubators’ intensive business support activities are comparable to the realization of investment projects characterized by a high degree of uncertainty and decision-making flexibility, which are carried out by companies operating in a dynamic market environment. The aims of the paper are to systematically review the literature on business incubation and its process and to find the real options that can generate value creation and higher efficiency through exploring and analyzing the activities, programs and incubation process of selected Hungarian incubators