- It acts on a catalyst for economic development by boosting entrepreneurial growth and
- It helps young businesses to overcome the challenges of new start up stage which causes business failure
- Encourages faster growth and survival of new businesses
- It helps to convert business ideas into profitable ventures by supporting those with viable ideas and those that lack start up capital
- They help those individuals who cannot access mainstream business services
e.g. bank loans, modern consultancy services, etc which are expensive
- They provide a conclusive environment where the business succeeds
- They provide network activities which are necessary for business growth
- They provide start up structures thus providing a framework for enterprise development
| Privately sponsored | Publicly sponsored |
| 1. They provide more space and tenant | 1. The tenant capacity is limited |
| capability | |
| 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
charges |
| 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 |