With startup capital increasingly hard to acquire, many entrepreneurs are looking to incubators to help reduce costs as they create a corporation, reports Bloomberg.
Business incubators are organizations that help start-ups with support and services, such as expense management and professional business advice. Often these non-profit organizations can offer inexpensive office space and other cost-cutting strategies to help a new business get off the ground.
The National Business Incubation Association claims that startups receiving assistance have an 87 percent survivability rate after three years.
Many incubators also focus on a specific sector, sharing ideas and techniques among similar industries.
“The advantage with these types of incubators is that they are building upon their strengths and resources,” said Gary Locke, Secretary of the U.S Department of Commerce, told Bloomberg. “We really think they’ll have tremendous payoffs for job creation and business across the country.”
National and local governments are increasingly looking to incubators to help create jobs. U.S. Senator Harry Reid recently obtained $400,000 in funding to establish a business incubator in Carson City, Nevada, which will provide capital for entrepreneurs and new businesses.