New entrepreneurs have to face multiple challenges in starting, growing and sustaining their businesses. In developing countries, these challenges can range from labour and market regulations, finding the right markets for products, finding appropriate sources of funding, education and training of entrepreneurs and a lack or R&D infrastructure (Shanfari, D., 2012). Many small businesses fail in the initial stages as the owners are unable to negotiate and find solutions to these multifarious challenges. In this context, business incubators are a much needed solution to enable SMEs to sustain and grow in the long run. Business incubation formally began in the US in the 1960s, and later developed in the UK and Europe through various related forms (e.g. Innovation centres, technopoles/science parks). It is recognized as a way of meeting a variety of economic and socio-economic policy needs which can include employment and wealth creation, support for small firms with high growth potential, transfer of technology, promoting innovation, enhancing links between universities, research institutions and the business community, industry cluster development and assessment of a company's risk profile. In general, an incubator is a physical location that provides a defined set of services to individuals or small companies. This may include specific types of office space, flexible lease terms, access to technology, financing, and technical assistance (such as marketing, legal, finance, HR, and other business development services). By locating similar or complementary entities in proximity to each other, the incubator may also play a critical role in