Small business incubators as a form of its institutional support

The article discusses the significance of small business and entrepreneurship as an important component of the economic structure of the state. It highlights the problems that arise in newly created small businesses. Several aspects of the functioning of small businesses in industrially developed countries, particularly the United States, are analysed. Attention is focused on the role of small business incubators as a form of institutional support. The essence of new small business incubators, their positive functioning aspects, possible cases of low effectiveness, and their causes are studied. General information about the procedure for creating new business incubators is provided.

The purpose of the organizational mechanism of the functioning of incubators is shown, the need to develop a system of incentives to encourage small companies to speed up their own business is emphasized. The most important key services and methods of their implementation in the practice of functioning of US incubators are highlighted. Some negative points in the development of this form of small business support are noted and the influence of the level of organization of the incubator on the success of its work and the impact on the activities of the companies with which it works is indicated.

It is emphasized the need for newly formed small businesses to realize that the incubator is a means to achieve the goal, one of the phases of their growth and formation as a company, being in an incubator requires no less intense activity from them than when running a business independently. Attention is focused on the fact that when creating incubators, it is worth using numerical recommendations, which have been developed over many years of practice of the functioning of this driving force of small business.

Keywords: entrepreneurship, business, small business, small business incubators, companies, effectiveness.

doi: 10.32403/1998-6912-2023-1-66-210-217