- 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