Why are business incubators worthy of government subsidies?
Answer:
Government subsidies for well-managed business incubation programs represent strong investments in local and regional economies. Consider these returns: Research has shown that, for every $1 of estimated public investment provided the incubator, clients and graduates of NBIA member incubators generate approximately $30 in local tax revenue alone. NBIA members have reported that 84 percent of incubator graduates stay in their communities and continue to provide a return to their investors. Publicly supported incubators create jobs at a cost of about $1,100 each, whereas other publicly supported job creation mechanisms commonly cost more than $10,000 per job created.