Business incubation is a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services. These services are usually developed or orchestrated by incubator management and offered both in the business incubator and through its network of contacts.
A business incubator’s main goal is to produce successful firms that will leave the program financially viable and freestanding. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies.
Smilor and Gill define an incubator as an organization that “seeks to give form and substance—that is, structure and credibility—to start-up or emerging ventures. Consequently, a new business incubator is a facility for the maintenance of controlled conditions to assist in the cultivation of new companies.”
Business incubation has provided solid evidence of its capacity to nurture entrepreneurial business development and, in the long-term, maintain and retain new business ventures.
Some of the advantages of Incubators
- Reduce Risk of small business failures by offering valuable support and services
- Create Jobs more effectively
- Contribution to local economies
Business incubators are facilities that provide small, entrepreneurial businesses with affordable space, shared support and business development services. They can help young businesses during their start-up period when they are most financially vulnerable.