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Business Incubation Works

Business Incubators have been used to achieve a wide range of objectives, primarily those that small businesses are good at - creating jobs, developing innovative ideas, diversifying the local economy, and broadly generating activity and wealth by creating a vibrant small business sector.

Business Incubators have an important role to play in supporting local and regional businesses, but entrepreneurs may ask whether they actually work.

Over the last 9 years, UK Business Incubation (the international membership and best practice body) has measured the impact that incubators have on the local economy and workforce. The research proves that an incubator's client businesses provided an average of 167 jobs (full time equivalents) per incubator and are home to an average of 30 client businesses. Most (60%) incubators also operate "outreach" services, helping and advising companies outside the incubator. Those operating outreach activities support an average of 150 additional businesses. Across the sample, an average of 75% of client companies’ turnover up to Β£500,000, but only 1.5% had a turnover of > Β£5 million.

Most importantly, business incubators have an average success rate of 98% of businesses succeeding whilst in the incubator (compared to a national average of less than 50% of all small and medium sized companies registered) and 87% surviving after 5 years of starting.

© UK Business Incubation Limited, UKBI 2008