The Role of Incubators in Small Business Planning

Abstract

An incubator houses a number of new, small businesses that share space and administrative support. Management assistance is usually available and financial assistance is sometimes provided. Incubator managers can aid tenants also by encouraging and assisting them in their planning efforts. However, this study found a wide variance among incubators regarding the amount of planning by tenant firms. Further, the amount of planning by tenants appears to be a function of the amount of planning that is required or encouraged by incubator managers. The major implication is that planning can be affected by incubator managers. Thus, incubator managers should see part of their role as a planning facilitator. Additional areas for future research are suggested.