Proceedings of 4 th International Conference on Education and Information Management (ICEIM-2013) 421 Factors Related to Entrepreneurial Incubation Centers Model Verification Through Delphi Technique * Muh. Amsal. Sahban, Dileep Kumar, Subramaniam Sri Ramalu Universiti Utara Malaysia, Malaysia * amsalsahban@yahoo.com Abstract: The students of business graduate program in many universities in Indonesia are undergoing frequent training programs to become entrepreneurs. The facilities provided by the universities are termed as business incubation program. Though many dimensions of incubation program are available through literature and various models which are adaptable to the Indonesian business school context has been less research into. A qualitative research is conducted to fix the dimension of a business incubation program among business graduates in Indonesia. In order to collect the data, the study followed interview, observation, focus group discussion and Delphi technique in this study. The study observed that there are seven factors which are closely associated with incubation programs such as space, sharedness, service, support, skill, seed capital and synergy. This paper provides an insight into an influential factor of business incubation programs for business graduate students in Indonesia. Keywords: entrepreneurs, incubation program, training programs and business school 1. Introduction It is a well known fact that the business incubation centers play an important role in grooming entrepreneurial intention among young wards. Aspiring entrepreneurs are well trained through this program in order to start up own business in their area of interest. Knowledge sharing, learning and development advisory, administrative support services and habit development are the major responsibilities expected from such programs. Many policies and regulations have been made by Indonesian Government to enhance the quality of graduates in higher education. Numerous programs have been launched to build the frame of mind and business awareness of university students such as National Science Fair (PIMNAS), Student Entrepreneur Program (PMW), Student Creativity Program (PKM), Business Incubator Program and many other programs that can improve not only student’s creativeness, proactiveness, innovati veness, but also competitive aggressiveness, risk taking ability and autonomy to start up a new business. Yet the government is unlikely ready for those programs as the government support is considerably lacking and inconsistent in developing this programs, particularly in incubation program (Muafi, Wahyuningsih, Effendi, & Sriyono, 2012). Most programs cannot run properly because they are not well prepared. In the case of business incubator programme, for instance, most studies has agreed that this program can support the development of economic and reduce unemployment (Al-Mubaraki & Busler, 2013; Davies, 2009), however, the incubator programme lacks coordinations such as both Non-Departemental Government Institutions and the related Ministry still run this program separately and it has not been integrated yet (Ambardi, 2012). On Wednesday, 25 th January 2012, Investigation and Implementaion Bureau (BPPT) in Indonesia held a discussion forum of business incubator with the topic of “Government Role in Development Program of Business Incubator.” They launch a forum in order to push new innovated entrepreneur to start up a business. During the discussion, it was revealed that the development of a business incubator in Indonesia is still far left behind when compared to neighboring countries such as Malaysia, China and even Vietnam. Considering this issue, this particular study is conducted among few Indonesian universities and business schools, through qualitative interventions that to ascertain the factors that are contributing to best incubation centers with the aim of to extendng better learning and development and administrative support to the entrepreneurial aspirants. The study has incorporated problem formulation, model incorporation and theory building with expert verification to identify the factors that best contribute to incubation centers. Issues Pertinent To Business Incubation Program in Indonesia: In developing countries, particularly in Indonesia, incubation is a key factor in accelerating the development of technologies, industries and business skills that in turn will increase the economic growth. However the need of education, business training and public institutional support to enhance the above technology, industries and business skills is still extremely different and far below than the more mature corporate environment such as Europe and the United States (Davies, 2009). Most Incubators in Indonesia are under the management of the higher education institution, state research institutions, private institution and state-owned enterprises (BUMN). The weakness of the incubator in Indonesia lies on inadequate facilities and capacity as well as the competence of the managers that still need to be improved through a series of training. Both central and local government still do not pay much attention to the strategy and incubator policies that is consistent with the character and local resources in carrying out incubator training. It is due to the fact that there is nogovernmentprogramthat specificallyencouraged the establishment ofincubator programme (Sanjaya, 2011). These days, the amount of university graduates in Indonesia is getting bigger statistically and most of them only rely on job vacancy instead of starting up a new business, meanwhile the absorption from industries is only 16% of the graduates. Furthermore, many higher education institutions are only able to produce a large number of graduates without embedding the necessary skills. This phenomenon has become an evidence that the college fail to create innovative graduates who are ultimately tend to be a job seeker instead of job creator (Loy, 2013). The competition today is getting fierce in the world of work, only a few numbers of graduates could successfully obtain a job and it is time for higher education institution to alter this old paradigm and find a better way to create qualified graduates who have good mindset to start up their business. In term of innovativeness, Indonesia can be classified as a low productive country and low flow capital for SME’s. Indonesia could not step further to be a developed country like any other ASEAN countries. For instance, South Korea can directly step higher from a large number SME’s country to a developed country because of creativeness and innovativeness. Therefore, in order for Indonesia to be able like South Korea, Indonesian should be creative and innovative (Puspitarini, 2013). In 2011 the General Directorate of Higher Education announced there are 350 proposals of the student creativity programme (PKM) had successfully passed from selection process and they are eligible to go for competition at national science fair (PIMNAS). However, only