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| Impact of business incubators |
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The benefits of a well-managed incubator can be many-fold for different stakeholders:
For tenants, it enhances the chances of success, raises credibility, helps improve skills, creates synergy among client-firms, facilitates access to mentors, information and seed capital.
For governments, the incubator helps overcome market failures, promotes regional development, generates jobs, incomes and taxes, and becomes a demonstration of the political commitment to small businesses.
For research institutes and universities the BIC helps strengthen interactions between university-research-industry, promotes research commercialization, and gives opportunities for faculty/graduate students to better utilize their capabilities.
For business: the BIC can develop opportunities for acquiring innovations, supply chain management and spin-offs, and helps them meet their social responsibilities.
For the local community: creates self-esteem and an entrepreneurial culture, together with local incomes as a majority of graduating businesses stay within the area.
For the international community: it generates opportunities of trade and technology transfer between client companies and their host incubators, a better understanding of business culture, and facilitated exchanges of experience through associations and alliances.
It should be noted that incubators nurture entrepreneurs, who create enterprises, of which some would after leaving the incubator create direct and indirect employment, with incomes and assets that in turn contribute to sustainable economic growth. Often the start-up entrepreneurs' task may be to create jobs for themselves and conserve their limited funds; only when they graduate and leave the incubator that some may grow exponentially creating employment, incomes and taxes.
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