Abstract. The biggest problem for many small and medium enterprises (SMEs) is not the idea or the product provided and neither its customers, but their needs. High prices of production and office space are critical to the survival of a small business. Incubators come as a response to the needs of small and medium enterprises in key steps of a business, such as initiation and market penetration. An incubator aims to have a positive effect on the economic health of an area, of a community.

Keywords: development; efficiency; business environment; survival rate; business incubator.