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Structure, Policy, Services, and Performance in the Business Incubator Industry

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  • David N. Allen
  • Richard Mccluskey

Abstract

Business incubators are one of the newest tools on the enterprise development scene; nearly 400 are now in operation. A business incubator is a facility that provides affordable space, shared office services, and business development assistance in an environment conducive to new venture creation, survival, and early-stage growth. This article is a preliminary examination of the relationships among incubator structure, policy, services, and performance. A value-added continuum model is used to describe various kinds of incubators and aspects of their operations. Managers of 127 incubators were surveyed to examine features of the value-added continuum. Surrogate measures for the concepts that anchor either end of the continuum—property development and business development—are empirically examined. Incubators are found to be poor real estate ventures. Age and size of facility are found to be important determinants of jobs created and firms graduated. Only one other structure, policy, or services variable is important for explaining business development outcomes.

Suggested Citation

  • David N. Allen & Richard Mccluskey, 1991. "Structure, Policy, Services, and Performance in the Business Incubator Industry," Entrepreneurship Theory and Practice, , vol. 15(2), pages 61-77, January.
    • Handle: RePEc:sae:entthe:v:15:y:1991:i:2:p:61-77
    DOI: 10.1177/104225879101500207
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    References listed on IDEAS

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    1. Birley, Sue, 1985. "The role of networks in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 1(1), pages 107-117.
    2. Fred L. Fry, 1987. "The Role of Incubators in Small Business Planning," Entrepreneurship Theory and Practice, , vol. 12(1), pages 51-62, July.
    3. James R. Lumpkin & R. Duane Ireland, 1988. "Screening Practices of New Business Incubators: The Evaluation of Critical Success Factors," Entrepreneurship Theory and Practice, , vol. 12(4), pages 59-81, April.
    4. Reynolds, Paul D., 1987. "New firms: Societal contribution versus survival potential," Journal of Business Venturing, Elsevier, vol. 2(3), pages 231-246.
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    Cited by:

    1. Chan, Yolande E. & Krishnamurthy, Rashmi & Sadreddin, Arman, 2022. "Digitally-enabled university incubation processes," Technovation, Elsevier, vol. 118(C).
    2. Surana, Kavita & Singh, Anuraag & Sagar, Ambuj D, 2020. "Strengthening science, technology, and innovation-based incubators to help achieve Sustainable Development Goals: Lessons from India," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    3. Kavita Surana & Anuraag Singh & Ambuj D Sagar, 2020. "Strengthening science, technology, and innovation-based incubators to help achieve Sustainable Development Goals: Lessons from India," Papers 2005.13138, arXiv.org, revised Jun 2020.
    4. Yuan Jing, 2022. "The Relationship Between Business Model Innovation and Operational Performance of Incubator Enterprise," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 153-191.
    5. Stephens, Bryan & Butler, John Sibley & Garg, Rajiv & Gibson, David V., 2019. "Austin, Boston, Silicon Valley, and New York: Case studies in the location choices of entrepreneurs in maintaining the Technopolis," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 267-280.
    6. Anthony Tibaingana, 2020. "Anecdotal Evidence of the Role of Incubation in the Growth of Business Start-Ups in Uganda," International Business Research, Canadian Center of Science and Education, vol. 13(1), pages 64-78, January.
    7. Julie Vardhan & Madhuri Mahato, 2022. "Business Incubation Centres in Universities and Their Role in Developing Entrepreneurial Ecosystem," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 8(1), pages 143-157, January.
    8. Charlene L. Nicholls-Nixon & Dave Valliere & Steven A. Gedeon & Sean Wise, 2021. "Entrepreneurial ecosystems and the lifecycle of university business incubators: An integrative case study," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 809-837, June.

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