Measuring Nonprofit Incubator Performance: Toward an Adapted Balanced Scorecard Approach

Abstract

The number of business incubators in the world has risen dramatically, with many regions promoting nonprofit incubators. Yet declines in public funding have brought to the fore a key question about how well they perform. Both policymakers and incubator managers therefore stand to benefit from reliable tools to monitor performance. In this paper, we present a scale to measure incubator performance based on the research literature on incubator performance and management control. We used the balanced scorecard as a basis for thought about how best to develop a model of nonprofit incubator performance. Data collected from 121 incubator managers show that performance can be assessed along four constructs: local development performance, incubatee satisfaction, incubation processes, and learning. This tool comprises a broad range of performance indicators and, perhaps more importantly, may help incubator managers to better run their organizations and regional policymakers to better evaluate their entrepreneurship policies.