What is Business Incubator?

What is Business Incubator?


In the previous post, we discussed the meaning of business accelerator. Here we shall be looking at “what is business incubator?” and also explain the distinctions between them.

First of all, a business incubator is a company that helps new and startup companies to develop by providing services such as management training or office space.

In other words, Business incubators are organizations geared toward boosting the growth and success of startup and early stage companies. They usually pave way to capital resources from available investors, state governments, economic-development coalitions and other investors.


The National Business Incubation Association (NBIA) defines business incubators as a catalyst tool for either regional or national economic development. The NBIA has more than 1,400 members in the United States — and a total 1,900 members in 60 nations.

Attention is also needed to be brought to the fact that business incubator is quite different from “business accelerator”.

Business incubator have to do with Companies which are typically starting-up, that is to say beginners that have moved beyond the earliest stages of set-up.

They are expected to have entered their more matured stage rather than the early and infant stage, which means they can stand on their own but need a kind of guidance and support to gain their stand and balances.


Read more on: What is Business accelerator?


On the other hand, business incubator is concerned with less developed companies that are not up to acceleration stage. Therefore, the whole range of services, that business incubation program could provide, consists of key value proposition for startups and supporting system services.


Key value proposition for startups

  1. Secretarial Service
  2. Infrastructure / Facility-Based Services
  3. Business Services
  4. Financing and Access to finance
  5. People Connectivity and Networking
  6. Education / Access to knowledge


Supporting system services

  1. Brand Building
  2. Management of the Program


Leave a Reply

Your email address will not be published. Required fields are marked *