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Incubation

Incubation

Successful competition in today’s challenging global economy requires innovation and many of those innovators are entrepreneurs starting new businesses. Business incubators provide the critical expertise, networks and tools entrepreneurs need to make their venture successful.

 

Business incubation is global with more than 1,000 facilities in the United States and 7,000 facilities world-wide. Incubation is a proven model for:

  • Business Commercialization
  • Job Growth
  • Economic Development and Community Revitalization

 

In a business incubator facility early-stage companies are grouped together and benefit from networking, services, and management support. Most incubators offer access to business assistance services such as coaching, capital, technical and business resources, navigation through government agencies and networking opportunities. In addition, incubators offer flexible office space in a professional business environment.

 

In North America, the number of incubators has doubled since 1998. According to the National Business Incubation Association, start-up companies in incubators have a higher success rate than those developing without the critical business assistance provided by incubators:

  • More than 65 percent of incubator-based early-stage companies are likely to receive third party financing, compared to less than 10 percent of early-stage companies not based in an incubator
  • 87 percent of incubator graduate companies remain in business after three years, compared to just half of non-incubator start-ups
  • 84 percent of those incubator graduates remain local to their incubator
  • New Jersey’s 14 operating incubators make significant and measurable contributions to the State’s Economic Growth

 

In 2009, there were 520 entrepreneurial client companies in New Jersey Incubators and they:

  • Created/retained over 1,500 new, higher paying jobs
  • Generated revenues of over $325 million
  • Brought into NJ over $95 million in 3rd party funding