The Impact of Business Incubators on Startup Performance Revealed
Meta-analysis results from over 55,000 firms have been published.
1Role of Incubators
Business incubators are widely used tools to support entrepreneurs. However, consistent data on their effectiveness is lacking. This study systematically analyzes the impact of different incubator types on venture performance.
2Research Scope
A meta-analysis of 39 studies involving 55,219 firms was conducted. The effects of incubators on various performance indicators such as innovation, growth, profitability, survival, and employment were examined.
3Innovation and Growth
Results show that incubators have a strong positive effect on innovation. A statistically significant but more modest impact was observed on growth.
4Limited Effects
The impact of incubators on survival, profitability, and employment was found to be either weak or inconsistent. This highlights the importance of aligning support models with desired outcomes.
5Support Models
Successful incubators adopt 'bridging' models that connect entrepreneurs with investors, customers, and expert networks. Models focusing solely on physical space or administrative support are less effective.
6Governance and Policy Recommendations
Private and university incubators outperform public models. Policymakers should shape incubator support models and governance structures based on targeted outcomes.