Business Incubators |The Kentucky Cabinet for Economic Development

Business Incubators

A business incubator is a facility that houses a number of start-up businesses under one roof and is designed to accelerate the growth and enhance the success of those businesses, particularly in the critical first few years of the business. Incubators typically provide a variety of business support services and resources, often at below-market rates.

Some incubators specialize in a particular industry or field, such as technology, or they may also be more general and offer mixed use facilities. When incubator tenants grow to a point that they are financially stable, or they outgrow their space in the incubator, they often move to a new location in the community. While not all incubator programs are alike, the goal for most of them is to produce financially viable “graduates” that have the potential to create new jobs, revitalize neighborhoods, commercialize new technologies, and strengthen their local and regional economies.

Incubators are usually sponsored by private companies, non-profit organizations, municipal and government entities, public universities and colleges, venture capitalists, or by partnerships among entities such as these. Typical services offered by business incubators to their tenants include:

  • Access to office and/or manufacturing space at reduced or below-market rates
  • Access to administrative support services, office equipment, and conference rooms/meeting spaces
  • Access to capital
  • Access to legal and accounting services
  • Access to management consultation geared towards business planning and development

Since space is limited, incubators typically screen potential tenants to be sure that they are choosing businesses with the best possible chance for success and growth. Listed below are a number of different incubator programs located in Kentucky and their areas of specialty, if any: