Business Incubators: The Genesis, Growth, and Innovation Exhilarating

Abstract

Business incubators have evolved over the years due to various factors such as global trends, economic needs, technical revolutions, and challenges. These incubators play a vital role in supporting young companies, helping them grow, and enhancing their commercial success. While the expansion of incubation models is well-recognized, there is limited awareness regarding how their value propositions have transformed over time. This study begins by tracing the origins of business incubation back to the 1950s. It then delves into the analysis of the development of business incubators, categorizing them into three generations using typology methodology. The first generation primarily focuses on achieving economies of scale; the second generation places a strong emphasis on providing knowledge-based services, and the third generation centersaround facilitating access to external resources, expertise, and legitimacy. The core focus of this study revolves around understanding how the value propositions and strategies of incubators should be tailored to address the current opportunities, challenges, and trends that entrepreneurs and startups are encountering in today’s dynamic business landscape.