Benefits of business incubation

  1. It acts on a catalyst for economic development by boosting entrepreneurial growth and
  2. It helps young businesses to overcome the challenges of new start up stage which causes business failure
  3. Encourages faster growth and survival of new businesses
  4. It helps to convert business ideas into profitable ventures by supporting those with viable ideas and those that lack start up capital
  5. They help those individuals who cannot access mainstream business services

e.g. bank loans, modern consultancy services, etc which are expensive

  1. They provide a conclusive environment where the business succeeds
  2. They provide network activities which are necessary for business growth
  3. They provide start up structures thus providing a framework for enterprise development
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1. They provide more space and tenant 1. The tenant capacity is limited


2. They are managed by owners and

their employees

2. Are managed by executive advisory

board appointed by government

3. The selection criteria of who to incubate is not strict as they are

concerned with profits

3. There are strict entry standards as they are concerned with job creation
4. They allow tenants to stay longer till

the business can stand on its own

4. They have strict time limit due to

the limited space

5. Rent charge is high 5. Rent charge are reasonably cheap and at times there are no given


6. They offer a variety of services such as    training,    conference       rooms,

typing etc

6. They concentrate on business and financial services
7. The business owners are financed

by    the    incubators    or    private investors

7. They are funded by the government

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