Nationwide, business incubators are not a new concept. Today, incubators are being used world wide as an economic development tool to increase competitiveness in emerging markets. The business incubation model traces its beginnings to the late 1950s. Learn more.
The statistical data provided below has been reported by the National Business Incubation Association (NBIA) and the Small Business Association (SBA).
- Business incubators reduce the risk of small business failures. Historically, NBIA member incubators have reported that 87 percent of all firms that have graduated from their incubators are still in business.
- NBIA estimates that North American incubator client and graduate companies have created about half a million jobs since 1980. That is enough jobs to employ every person living in Denver, CO.
- Every 50 jobs created by an incubator client generate approximately 25 more jobs in the same community.
- NBIA estimates that in 2005 alone, North American incubators assisted more than 27,000 start-up companies that provided full-time employment for more than 100,000 workers and generated annual revenue of more than $17 billion.
- NBIA also reports incubator companies grow an average of 400% during their stay.
- Business incubators can reduce start-up costs by 40-50%.
Additional facts and information about business incubators is located on the NBIA site. Click here.