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Economic and Fiscal Impacts of a Business Incubator

Author

Listed:
  • Deborah M. Markley

    (Purdue University)

  • Kevin T. McNamara

    (Purdue University)

Abstract

Business incubators are one option communities have to support business survival and growth. Incubators are locally based institutions that provide shared physical space and business support services to new and young firms. Most incubator evaluations have not measured total employment and income impacts or the fiscal impacts generated by incubator firms. This article describes the economic and fiscal impacts of one business incubator to illustrate how an incubator can encourage jobs and income in a local community. Incubators generate jobs and income and create linkages with firms inside and outside the local economy over the long run. The cost of creating these jobs is competitive with those costs associated with attracting manufacturing investment into a local community. Incubators can have an impact on communities that are not well positioned to attract such external investments.

Suggested Citation

  • Deborah M. Markley & Kevin T. McNamara, 1995. "Economic and Fiscal Impacts of a Business Incubator," Economic Development Quarterly, , vol. 9(3), pages 273-278, August.
    • Handle: RePEc:sae:ecdequ:v:9:y:1995:i:3:p:273-278
    DOI: 10.1177/089124249500900307
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    Cited by:

    1. Chaffik Bakkali & Karim Messeghem & Gérald Naro & Sylvie Sammut, 2014. "Le Balanced Scorecard Dans Une Approche Constructiviste : Le Cas Des Incubateurs," Post-Print hal-01899216, HAL.
    2. Ferreiro Seoane, Francisco Jesús & Del Campo Villares, Manuel Octavio & Camino Santos, Marta, 2015. "Analysis of business incubators in Galicia through the «Integral Model of economic profitability»," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 33, pages 7-31.
    3. J. Piet Hausberg & Sabrina Korreck, 2020. "Business incubators and accelerators: a co-citation analysis-based, systematic literature review," The Journal of Technology Transfer, Springer, vol. 45(1), pages 151-176, February.
    4. Riddle, Liesl & Hrivnak, George A. & Nielsen, Tjai M., 2010. "Transnational diaspora entrepreneurship in emerging markets: Bridging institutional divides," Journal of International Management, Elsevier, vol. 16(4), pages 398-411, December.
    5. Isabel Diez-Vial & Angeles Montoro-Sanchez, 2017. "Research evolution in science parks and incubators: foundations and new trends," Scientometrics, Springer;Akadémiai Kiadó, vol. 110(3), pages 1243-1272, March.
    6. Bollingtoft, Anne & Ulhoi, John P., 2005. "The networked business incubator--leveraging entrepreneurial agency?," Journal of Business Venturing, Elsevier, vol. 20(2), pages 265-290, March.
    7. Haiyan Li & Yong Tang, 2019. "Network Structure and Dynamics of Chinese Regional Incubation," Networks and Spatial Economics, Springer, vol. 19(4), pages 1173-1197, December.

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