Assessing the Effectiveness of Business Incubators

Abstract

This study aims to examine the effectiveness of business incubators, those mentoring and guiding the startups to survive and grow. To assess the effectiveness of the selected business models of 29 incubators by Department of Science and Technology (DST), GoI, we reviewed the incubation process and their business model from incubators and tenants’ perspective. Business incubators are considered as an effective tool to develop the new ventures, leads to employment generation, innovation and economic growth. Better understanding of the driving factors of business incubators will improve the success rate of the new ventures. Furthermore, assessing business incubators’ effectiveness and services will help the business incubators to align their offerings according to the needs of the tenants, and tenants may work for better utilisation of resources and make rational decision while deciding the incubators to work with. This integrative framework seeks to provide conceptual clarity of the various services provide by business incubators.