Why are business incubators worthy of government subsidies?
Government subsidies for well-managed business incubation programs represent strong investments in local and regional economies. Consider these returns: • Research has shown that for every $1 of estimated public operating subsidy provided the incubator, clients and graduates of NBIA member incubators generate approximately $30 in local tax revenue alone. Source: Extrapolated from data in Business Incubation Works • NBIA members have reported that 84 percent of incubator graduates stay in their communities. Source: Business Incubation Works Do business incubators that receive local funding and/or tax abatements compete unfairly with local landlords? No. Business incubators actually contribute to the long-term viability of the local real estate market. Incubation programs graduate strong and self-supporting companies into their communities, where these companies build, purchase or rent space. Because incubated companies are more likely to succeed than nonincubated firms, landlords of inc
Government subsidies for well-managed business incubation programs represent strong investments in local and regional economies. Consider these returns: • Research has shown for every $1 of estimated public operating subsidy provided the incubator, clients and graduates of the National Business Incubator Association member incubators generate approximately $30 in local tax revenue alone. Source: Extrapolated from data in Business Incubation Works • The National Business Incubator Association members have reported that 84 percent of incubator graduates stay in their communities.
