Exploring the strategic benefits of business incubation
HANADI MUBARAK AL-MUBARAKI, KUWAIT UNIVERSITY, KUWAIT
MICHAEL BUSLER, RICHARD STOCKTON COLLEGE, USA
ABSTRACT This paper critically reviews, identifies and analyzes the literature related to the strategic benefits of Business Incubators (BI), in the context of using BI as an economic development strategy. We examine the importance and the benefits of BI to: 1) economic development, 2) technology commercialization, 3) entrepreneurship, 4) job creation, and 5) the pace of innovation. The findings indicate that the potential applications of Business Incubators include promoting the establishment and long term survival of new ventures that will likely lead to a significant increase in job creation as well as promoting a climate of innovation and entrepreneurial spirit. This will tend to increase gross private domestic private investment and will also attract highly skilled workers. These actions promote the stabilization and eventual expansion of the business community while facilitating the growth of social and intellectual capital. The findings of this study will be significant to both scholars and practitioners and will provide a deep understanding of the strategic benefits of Business incubators.
KEYWORDS Business incubators, economic development, technology, commercialisation, entrepreneurship, job creation, innovation