New firms are an important mechanism through which new jobs are created. However, the new venture failure rate is greater than the rate of creation. Business incubators have been organized to bring new businesses together to increase the probability of success. Incubators do not guarantee success; however, evaluating potential clients on Critical Success Factors can minimize failures once the firm joins an incubator. This research investigates the screening practices of incubators and identifies unique groups of incubators. The screening practices were found to relate to sponsorship but not to physical characteristics or objectives.
American Journal of Small Business – SAGE
Published: Apr 1, 1988