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Business incubators are frequently mentioned as a potentially important
component of start-up success and
integral to a growing economy.
The term “business incubator” describes a variety of methods that are used in
economic development to nurture new, small businesses. In general, incubators
are intended to provide new firms with the supportive network necessary to
increase their probability of survival during the crucial early years when they
are most vulnerable.
Some proponents of business incubators suggest
that an organized system of incubators is necessary
to jump-start economic activities. Other proponents
suggest that there is a shortage of ideas rather than
resources, and that incubators sponsored by local
groups (whether non-profit or for-profit) can meet
the needs of the state’s budding entrepreneurs.
Finally, there are those who believe that business
incubators are a flawed approach to business
development that add little value and divert
resources from other economic development
opportunities.
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