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Posted by on Dec 11, 2008 in Uncategorized | 2 comments

Obama To Invest At Least $1 Billion Into Business Incubators

President-Elect Barack Obama plans to invest $250 million in government funds into business incubators every year as president, totaling $1 billion over four years. The move, which he says will encourage entrepreneurship by faciliating networking, business mentorships, and the free flow of innovative ideas, is part of an overarching strategy to help stop the bleeding the current economy.

Barack Obama Plans To Invest In Business Incubators

Barack Obama Plans To Invest In Business Incubators

Obama’s website states:

Barack Obama and Joe Biden will support entrepreneurship and spur job growth by creating a national network of public-private business incubators. Business incubators facilitate the critical work of entrepreneurs in creating start-up companies. Obama and Biden will invest $250 million per year to increase the number and size of incubators in disadvantaged communities throughout the country.

Usually listed with his other economic plans, this business incubator plan has not received as much media attention as his income tax cuts and plan to come to the best possible resolution to the the automobile industry solvency question.

If implemented correctly (i.e. tailored to local communities and focused on technology and other high-growth companies), this could have a major impact on the economy if it generates and helps along companies that would have otherwise never existed or survived.

A recent study in the Journal of Business Research found that business incubators can have a significant positive effect on the success of a venture because they often provide more abundant human and intangible resources than ventures than if a company is not incubated. Human and intangible resources are beneficial for companies because they can shorten the length of commercialization for companies, allowing them to generate sustaining revenue ore quickly. Incubators are shown to facilitate the development of new products and allow the products to be promoted more quickly.

Stay tuned to the National Spending Journal for coverage of Obama’s policies affecting small businesses.

  • politician

    i’ll believe it when i see it. keep telling everyone what they want to hear, mr Hussein obama

  • E. Rafael

    This is a great idea for those who have a entrepreneur spirit, but really do not know how to get started in business. Most business incubators are non-profit entities and are looking to give back to people and businesses to help them get started or grow their existing business into a solid organization. Business incubator programs generate businesses that generate jobs for our communities.

    I was a part of a business incubator sometime ago and it help me develop a solid business foundation. I always wondered why new or existing businesses or entrepreneurs would never take advantage of this service.

    We talk all the time about losing jobs; why not create businesses that prosper through incubator programs.

    I’m in full support of President Obama’s vision in creating a National Network of Public-Private Business Incubators and will even partake in developing a business incubator in my community.