The National Business Incubation Association, a private membership organization of incubator developers and managers, was launched in 1985 by industry leaders. From an initial membership of 40, it has grown to almost 800 members today. New incubators have been opening at the rate of about one a week since 1986. It is estimated that there are more than 8,000 startup firms housed in incubators and another 4,500 entrepreneurial ventures currently operating on their own were originally launched through incubators, including a number of the Inc. 500. Over 80 percent of firms that were started through an incubator are still in operation.
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.