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What is Incubation?

Business incubation represents one of the most dramatically developing tools for innovative entrepreneurship support. Conditions of incubation essentially assist to overcome barriers when starting and developing small businesses.
Business Incubator supports start-up enterprises by granting production and office spaces on favorable terms for business activity, office facilities and services which contribute to the business development.

Advantages of Business Incubation:

Business Incubator assists in search of financial and technical means for business development.
Office and consulting services offered by Business Incubator help to reduce the staff expenses, and helps the small enterprise work with high efficiency. Moreover, consulting services, informational resourses and educational opportunities help entrepreneurs withstand and develop in a modern environment.

Briefly about the history of incubation development:

Contribution of incubators both to the entrepreneurship and economic development, and to the development of cooperation has formed a strong instrument of regional development. Formally, the first business incubator was launched in Batavia (USA) in 1959. Thus, since late 80s incubation of entrepreneurship has become prevailing governmental policy to stimulate economic development and job creation. Presently, over 4,000 business incubators are counted worldwide.

Business Incubators in Kazakhstan.

There are 43 Business Incubators and Technology Parks in Kazakhstan. The Kazakhstani Association of Business Incubators and Innovation Centers (KABIIC) was established in 2000. It unites 14 business incubators and technological parks from the different regions of Kazakhstan. The Central Asian Network of Business Incubators and Technology Parks (CABIN) was established in November of 2002; the Network coordinator is SODBI Business Incubator in Shymkent.

Incubation: Facts*

  • Business Incubators reduce risk of small business failures. NBIA member incubators report that 87% of all firms that graduated from their business incubators are still in business.
  • For every 1$ of estimated annual public subsidy provided to the incubator, clients and graduates of incubators generate approximately 45$ in local tax revenue alone.
  • 84% of incubator graduates stay in their communities and continue to provide a return to their investors.
  • Publicly-financed incubators create jobs at a cost of about $1,100 each, whereas other publicly supported job creation mechanisms commonly cost over $10, 000 per job created.
  • North American incubators clients and graduates have created approximately 500,000 jobs since 1980.
  • Every two jobs created by an incubator client generated another one job in community.




* Statistic data is provided by National Business Incubation Association (NBIA), USA