Economic development has become a priority for countries around the world. At the heart of this effort lies the need to foster innovation and entrepreneurship and what are generally recognized as essential drivers of economic growth and prosperity.

Economic development aims to promote sustainable economic growth and improve living standards. Economic development is important because it creates a supportive environment for businesses and individuals to thrive, particularly when there are successful strategies in place. The ultimate goal is to generate new industries, create jobs and increase the wealth and well-being of the community.

Business incubators offer one approach to promote economic development. Incubators provide support and resources to entrepreneurs and startups. Incubators take many different forms — from physical spaces where entrepreneurs work and collaborate, to virtual networks connecting entrepreneurs with mentors. Incubators are designed to provide a supportive environment that enables entrepreneurs to turn their ideas into viable businesses. Incubators provide access to such resources as office space, equipment and expertise as well as funding, mentoring and networking.

A key benefit of business incubators is the ability to provide a platform for entrepreneurs to test their ideas and refine their business models before they’re launched into the market. By providing a supportive environment that enables entrepreneurs to experiment and iterate, incubators help decrease the risk of failure and increase the probability of success — one of the reasons business incubators have a broader effect on economic development.

Incubators foster innovation and entrepreneurship, help create new industries and contribute to job creation and retention directly as well as contribute to the overall growth and competitiveness of regional and national economies.

Still, incubators aren’t a silver bullet for economic development. They should be viewed as a lead support for broader policy initiatives aimed at fostering innovation and entrepreneurship. These might include initiatives to improve training and work force development, provide access to capital for startups and small businesses and streamline regulations and reduce barriers to entry. By working together, policymakers, business leaders and entrepreneurs can foster the conditions for sustainable economic growth and prosperity.

Without a business incubator, economic development would suffer with a lack of support for new and innovative businesses. Entrepreneurship would be hindered due to limited resources, mentorship and networking opportunities. There’d be a less diverse economy with fewer new industries and jobs, ultimately hampering overall economic growth and development.

As we support a thriving local business community, let’s also support the resources helping them succeed. They’re the backbone of our communities and drivers of economic growth and prosperity.