Study: The business of nurturing businesses

View the most recent version.

Business incubation activity is significantly more common in the economy than business incubators alone would suggest. Many business organizations offer incubation services to start-up companies.

The study, "The business of nurturing businesses," is based on the findings of the 2005 Survey of Technology and Electronic Commerce, which included a module on business incubation service providers and users.

Business incubation activity has two sides. It is useful to know how many organizations are involved in the business of helping and nurturing start-up and promising firms.

Just as important for business strategy and public policy is the information on the extent to which these services are used and what type of services are most in demand.

According to the study, providers of business incubation services are typically small organizations. Two-thirds of those providing such services between 2002 and 2005 had fewer than 10 employees, while 15% employed between 10 and 19 workers.

Nearly 45% of firms providing incubation services were located in one industry: professional, scientific and technical services.

An estimated 71,700 new firms made use of one or more incubation services in 2005.

Definitions, data sources and methods: survey number 5095.

The study "The business of nurturing businesses," part of the Science, Innovation and Electronic Information Division Working Papers, 2005, no. 2 (88F0006XWE2008002, free), is now available from the Publications module of our website.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Daood Hamdani (613-951-9919), or Rad Joseph (613-951-6830), Science, Innovation and Electronic Information Division.