The Role of Business Incubators in Local Economic Development

Abstract

This paper aims to (i) understand the functioning and importance of incubators in supporting the creation of new business and local economic development, as they help locally engage young entrepreneurs and thus retain expertise, for example in regions farthest from large urban centers; (ii) realize the importance of incubators and science parks in the development of start-ups; (iii) understand the role of education in promoting entrepreneurship; and (iv) understand the competitive environment as it becomes more complex and dynamic, as there are opportunities to serve customers who are dissatisfied, thus the threats that large companies experience offer small business opportunities.