Key concepts
Quick info
Incubator
development
Key concepts
Links to other incubator-related sites
 | First, incubators (and their economic benefits) take time to blossom. To be effective, an incubator must be considered a long-term development tool, often taking up to five years to have any economic impact on a community. |
| Second, the financing of the incubator facility is extremely critical to its success. Incubators typically require a significant initial capital investment, as well as an operating subsidy until the facility reaches capacity—a period that can last up to three years. Without adequate funding, the incubator manager is constantly trying to rent out space instead of assisting the tenant businesses, and the incubator soon becomes just another struggling real estate project. |
| Third, run the incubator as a business. This entails the incubator manager establishing the incubator’s self-sufficiency as quickly as possible. In addition, facility managers should produce business plans and financial projections to directors/board members to ensure oversight of the incubator’s management practices. |
| Finally, focus the energy and resources of the incubator on developing companies. Too often the incubator is perceived to have multiple missions such as revitalizing the neighborhood, commercializing emerging technology, or empowering a specific racial or ethnic group. |
How to make it work
-be patient
-creative financing
-manage the incubator like a business
-focus on developing strong, growing companies