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Business incubation is a dynamic process
of business enterprise development. Incubators nurture young
firms, helping them to survive and grow during the startup
period when they are most vulnerable. Incubators provide
hands-on management assistance, access to financing and
orchestrated exposure to critical business or technical support
services. They also offer entrepreneurial firms shared office
services, access to equipment, flexible leases and expandable
space all under one roof. An incubation's programs main goal is
to produce successful graduates - businesses that are
financially viable and freestanding when they leave the
incubator usually in two to three years. Thirty percent of
incubator clients typically graduate each year. According to the
Impact of Incubator Investments Study, 1997, 87% of incubator
graduates are still in business. Like venture capitalists,
incubators impose selection criteria upon prospective clients.
Some accept a mix of industries, but others concentrate on
industry niches. According to NBIA research, incubator clients
may be classified as follows:
43% Mixed Use
25% Technology
10% Manufacturing
9% Targeted**
6% Service
5% Empowerment
2% Other
** Targeted incubators focus on assisting start-up companies
from a specific industry, such as biomedical, wood products,
arts, food production, fashion, etc...
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