20+ Eye-Opening Business Incubator Statistics You Need to Know

Starting a company is not easy. Business incubators work to solve that program by offering startups and individuals the space and resources they need for success. 

Business incubators offer office space, equipment, training, and access to advisors, mentors, administrative support, and even potential investors. Programs vary; some are funded through universities or business colleges, or other sources, and some charge or take a small percentage of the incubating businesses for their services. 

The National Business Incubation Association (NBIA) divides its members into five categories:

• Academic institutions
• Nonprofit development corporations
• For-profit property development ventures
• Venture capital firms
• A combination of any of those four 

Do business incubators work? Where are they most successful? What are they most successful at doing? The best way to know is by looking at the business incubator statistics. 

Top Business Incubator Statistics

Here are some of the top business incubator statistics to kick us off:

• The average five-year survival rate for business incubator graduates is 75%
• Publicly funded business incubators in the U.S. registered as college and university-sponsored make up 25% of the incubators in the country
• The number of business incubators across the U.S. varies significantly by state, county, and region. 
• In the United States, the National Business Incubator Association has more than 1,400 members
• Incubation programs produce around four graduates per year
• In 2018, companies involved with ATI’s Clean Energy Incubator program raised $20.2 million in capital and earned nearly $2.8 million in revenue.
• The McGill Dobson Centre for Entrepeneurialship has launched over 400 startups
• Business incubators can reduce the cost of launching and operating a startup between 40% to 50%
• In partnership with an incubator, Appalachian Lighting Systems Inc. developed lights that reduced Ellwood City, Pennsylvania’s energy costs by 70%
• 54% of incubators are considered “mixed-use,” assisting a range of startups 

Keep reading to see all 21 business incubator statistics!

Overall Business Incubator Statistics

Here are some overall business incubator statistics for a full picture!

The average five-year survival rate for business incubator graduates is 75% (NBIA)

With support, resources, and structures for success, this rate is sometimes as high as 87%.

Publicly funded business incubators in the U.S. registered as college and university-sponsored make up 25% of the incubators in the country (West Virginia University)

Development foundations and chambers of commerce sponsored 19%, governments sponsored 16%, and economic development corporations sponsored 15%.

The number of business incubators across the U.S. varies greatly by state, county, and region (West Virginia University)

The southern region has the top ranking with 294 incubators compared to 91 incubators in the western part of the U.S. 

In the United States, the National Business Incubator Association has more than 1,400 members (NBIA)

While named the National Business Incubator Association, they have a presence in over 60 countries with a total membership of 1,900. 

Incubation programs produce around four graduates per year (NBIA)

An incubation program can have around 21-22 graduate firms in five years. 

In 2018, companies involved with ATI’s Clean Energy Incubator program raised $20.2 million in capital and earned nearly $2.8 million in revenue (Texas.Comptroller)

While great for the companies, this was also a boon for the state as these companies reported 67.5 employees and approximately $9.8 million in economic impact in Texas. 

The McGill Dobson Centre for Entrepeneurialship has launched over 400 startups (McGill)

Together, these startups have raised over $2.2 billion in pre-seed funding and created over 8,000 jobs across 36 countries. 

Business incubators can reduce the cost of launching and operating a startup between 40% to 50% (NBIA)

Business incubators can spread their funding and intellectual wealth to significantly impact a startup that might not have been able to afford or have the knowledge to do it on its own. 

In partnership with an incubator, Appalachian Lighting Systems Inc. developed lights that reduced Ellwood City, Pennsylvania’s energy costs by 70% (The Mill Magazine)

With the resources provided by the incubator Innovation Works, a company was able to create more energy-efficient lights for streetlights, sign illumination, parking lots, and tunnels, making a significant impact on the city. 

54% of incubators are considered “mixed use,” assisting a range of startups (Aspen Institute)

A whopping 37% focus on technology businesses, while others focus on specialties such as education, food, or fashion. 

New York, Oklahoma, Wisconsin, North Carolina, and Pennsylvania have the most incubators in the U.S. with over 30 in each of those states (West Virginia University)

In other states, business incubators are less common. Nevada, Wyoming, Arkansas, New Hampshire, Rhode Island, and Vermont each have less than 3. 

In 2008, on average, business incubators operating for five or more years had 17 resident clients, 32 affiliate clients, and 55 graduates (NBIA)

While an incubator’s reach might seem small, taken year by year, there is a cumulative effect on its success. 

In 2008, full-time employment for incubator firms was around 315,000 (NBIA)

Part-time employment from incubator firms reached 41,000.

The percentage of incubated companies that received financing from an introduction made at an incubator was 40% for early stage companies, but only 5% for enterprises in growth stage (Aspen Institute) 

This study showed that the incubators studied created more value for early-stage companies with less than $500,000 in revenue.

Business incubator programs have been around for more than 50 years (Economic Development Administration)

There are now over more than 7,500 worldwide. It’s an idea that has caught on and is here to stay!

Between 1983 – 2010, the incubator Tech Ventures graduated 47 companies, grossing more than $408 million in annual revenue in 2010 (The Mill Magazine)

Those companies created over 4,500 jobs and raised $293 million in outside investment capital.

The concept of business incubators began emerging in the U.S. in the 70s, grew rapidly in the 80s (Aspen Institute)

Business incubator programs spread internationally and, by the year 2000, became adopted by countries like Brazil, New Zealand, and India.

Arouns 40% of investment-seeking member companies find investment through an incubator program connection (NBIA)

In business, it’s all about who you know, connections, and networking. Business incubator programs have those networks already in place. 

In 2013, more than 150 companies were accepted in Arizona business incubators (Arizona Commerce Authority)

Together, these companies raised over $110 million in private capital.

As of 2021, there were around 125 Technology Business Incubators supported by the Indian government (iea)

One of these incubators, Indigram Labs, was founded in 2015 to support agriculture, food, and cleantech startups. 

In the U.S. there is a stronger business incubator presence in urban areas than in rural (West Virginia University) 

29% of metro counties have at least one business incubator, while less than 15% of micro counties have business incubators.

Wrap Up

Business is ever-changing and ever-evolving. Business incubators look different from what they did 50 years ago. Who knows what they’ll look like 50 years from now? 

We do know that the business incubator statistics show they create jobs and revenue and could play a significant role in scientific, environmental, and technological advancements.