Business incubation is on the rise on a global scale. They estimate that there are at 500 incubators in developing and transition countries with an annual growth rate for new incubators being about 20 percent annually. There are a wide variety of reasons for operating an incubator. There may be a need for job creation in the community, promotion of economic self-sufficiency for a selected population group, diversification of the local economy, transfer of technology from universities and corporations, or sharing venture experiences with new companies by successful entrepreneurs and investors. There is no question that whatever the motivation behind the incubator, it is an economic boon for the community, providing jobs and an expanded business base.
Business incubators have a wide variety of structures and supportive mechanisms.
Globally there is less private sector involvement in the incubation process, but that is expected to change as private enterprise realizes the reduction in risk of early-stage failure for incubator initiated businesses. The most common types of firms using business incubators are light manufacturing, technology and service firms and those developing new products or engaged in research and development. There are a limited number of construction-related, sales and marketing, or wholesale and distribution firms using incubators. A retail operation is considered a poor fit for incubation. All rights reserved.