Startup ecosystems are emerging all over the world and have received increased interest from governments and investors, even in developing countries. The Economic Survey 2021-22 declared India as the third-largest startup ecosystem in the world, after the US and China. The government recognised over 14,000 new startups in 2021-2022, taking the total number of recognised startups in the country to 61,400 and these numbers are ever increasing.
In this context the role of Incubators become crucial. Incubators are institutions that support budding entrepreneurs in developing their businesses, especially at the nascent stages. These are organizations geared towards speeding up the growth and success of start-ups and early-stage companies.
As early stage hand holders, incubators act as an integral part of the start-up ecosystem. They act as a catalyst for both regional as well as national economic development. There are different types of incubators: Academic institutions; Non-profit development corporations; For-profit development ventures; Venture capital firms, and combinations of the above.