Abstract
The increasing number of small business incubators reflects the growing importance of the small business sector in conjunction with local and state support for new enterprise development and for public-private cooperation in development. The authors review literature on incubator development and examine how and why incubators continue as aids for new development and redevelopment in declining areas, as well as serve as an enhancement to innovation and entrepreneurship through university-related incubators or innovation centers. The authors conclude that improving the base of small business and nurturing new business formation will be more important in the long run than attempts to attract new employers from the outside. Yet, it is clear that few incubating firms create more than a handful of jobs. Continuing research will contribute to a better understanding of how and if business incubators can make lasting contributions to economic development.
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