One of the mechanisms for the development of small business is the organization of state inter-district business incubators. At the same time, a correct assessment of the effectiveness of their activities is necessary, reflecting the economic positive changes in the economy of the municipalities to which the graduates of the business incubator are sent. The authors propose a methodology for evaluating the effectiveness of a business incubator, taking into account both the overall economic effect of a newly created business and the contribution of the incubator's employees to the results of its activities based on determining a private indicator of business performance and the employee's KTV. Domestic and foreign practice shows that business incubators are one of the tools to accelerate the social and economic development of any municipal area and the country as a whole. Business incubators can play a significant role in organizing their own business in the development of small businesses. The proposed methodology will allow evaluating the results of the business incubator, taking into account the available resources and the existing needs of the market of municipalities and the region. The authors focus on the fact that for the development of small business, the effective use of the available resources of the municipality, it is necessary to create state business incubators that orient the population of municipalities to promising activities when creating their own business. The main objective of these incubators should be the creation of successful entrepreneurs in municipalities. Based on this, the assessment of the activities of the proposed business incubators should be considered from the standpoint of the effectiveness of both personnel and business results of graduates («grown» entrepreneurs). The article presents calculations of the efficiency of a newly opened business in a business incubator. In addition, the assessment of business projects of graduates was carried out. In the final part of the article, the authors formulate conclusions regarding the role of business incubators in ensuring economic development, supporting small businesses and the population as a whole.