Incubators carefully screen potential businesses because their space, equipment, and finances are limited, and they want to be sure they're choosing to nurture businesses with the best possible chance for success.
The National Business Incubation Association (NBIA) defines business incubators as a catalyst tool for either regional or national economic development.
Many business incubation programs partner with their local SBDC to create a "one-stop shop" for entrepreneurial support.
Within European Union countries there are different EU and state funded programs that offer support in form of consulting, mentoring, prototype creation and other services and co-funding for them.
There are approximately 900 business incubators nationwide, according to the National Business Incubation Association.
Incubators provide numerous benefits to owners of startup businesses.
These hurdles include space, funding, legal, accounting, computer services and other prerequisites to running the business.
Among the most common incubator services are: One example of a specialized type of incubator is a bio incubator.
NBIA categorizes their members’ incubators by the following five incubator types: academic institutions; non-profit development corporations; for-profit property development ventures; venture capital firms, and combination of the above.
Business incubators differ from research and technology parks in their dedication to startup and early-stage companies.