What is Incubation?
Business incubators provide a location, assistance and counseling to the development of entrepreneurial companies, giving them much needed assistance during their start-up or expansion phases.
Business incubators provide management assistance, guidance and planning in obtaining financing, marketing and other resources. Flexible space with shared basic office services and access to equipment is the goal of most programs.
Incubation programs come in many shapes and sizes and serve a variety of communities and markets:
- Most North American business incubators (about 90%) are nonprofit organizations focused on economic development. About 10% of North American incubators are for-profit entities, usually set up to obtain returns on shareholder’s investments.
- 47 percent are “mixed-use,” assisting a range of early stage companies.
- 37 percent focus on technology businesses.
- 7 percent serve manufacturing firms.
- 6 percent focus on service businesses.
- 3 percent concentrate on community-revitalization projects or serve niche markets.
- There are around 1,000 business incubators in North America (Source: National Business Incubation Association)
A National Business Incubation Association (NBIA) study reports that 87% of incubator startups are still in business after 10 years, compared to a survival rate of only 44% of non-participants after four years in business.
About A-B Tech's Business Incubator Program
About A-B Tech's Student Business Incubator Program
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