The Effect of Business Incubation in Developing Countries

Abstract

The aim of this paper is to review the literature and show the strength and weakness of business incubation in developing countries. This p aper is based on a wide literature review, focused on the identification of the incubators as tool for economic development. We found that 1) business incubators provide support for start-up companies, 2) graduated companies tend to have a greater probability of success and 3) graduated companies ha significant positive impact on economic development. These findings can help policy makers, governments, and practitioners with their implementation in incubator programs, leading to be tter planning and a greater chance of success. This paper contributes to enhance the understanding of the strategic implementation of incubator models in developing countries and provides useful information to both academicians and practitioners who are interested in incubator progr ams.

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