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Business incubators are intended to enhance the growth of new firms by minimizing business failures. The environment for incubators improved as governmental policies shifted their emphasis toward small business generation. However, not enough is understood about how, why, and under what circumstances new firms succeed within the sheltered environment of incubators. This article uses an interorganizational framework to evaluate some preliminary studies of incubator performance and effectiveness. Copyright 1991 by The Policy Studies Organization.

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