Why Universities Create and Foster Business Incubators?

Abstract

: Although other countries have encouraged business incubation programs and business accelerators to foster economic growth, development, and stability in their nations', the United States (US) has led the world in this effort. In the US, there are over 900 business incubators, and the first was established in 1959 in Batavia, New York. This paper analyzes why student entrepreneurs start businesses. It also aims to understand the role and impact of university business incubators in assisting entrepreneurs and supporting regional economic growth, development, and stability while outlining the business framework(s) that tracks how these incubators help develop entrepreneurs and create jobs. This study draws from Grimaldi & Grandi incubating models, Merrifield's decision tree, capitalist ideology, division of labor and specialization ideology, neo-classical growth theory ideology, Marxist economic perspectives as a monitor of capitalism overreach, and from the Arrowhead Center—Studio G client logic model. The study uses a qualitative analytical approach to understand why student entrepreneurs in the Arrowhead Center—Studio G incubation program start their business and the impact of Arrowhead Center—Studio G in supporting them. The primary contribution of this paper to the literature on small—business ventures and incubation programsis the study gives an overall view of New Mexico State University—University Business Incubator (NMSU—UBI). The NMSU—UBI is used as a case study for other UBIs in the US, and it tries to discover the driving factor(s) behind student entrepreneurs starting their businesses. The study also examines the experiences and feedback from the participants whose contribution(s) provide valuable information to the Arrowhead Center—Studio G (Studio G) and other business incubators, nation, or worldwide. The research information is relevant to policymakers, economists, new business incubators, and accelerators interested in imitating Studio G's incubation program strategies. As it provides a deeper understanding of why student entrepreneurs start businesses and the role incubators and accelerators can play to assist and promote entrepreneurship in a region. The analysis for this study is based on qualitative data mined from Studio G's client intake and follow-up interview sessions. an effective to and the growth and development of new companies, thus The NMSU—UBI to assist new business ventures in the Cruces (LC) area a variety of business support programs.