What is the main purpose of a startup incubator?

The main purpose of a startup incubator is to help new businesses develop. Incubators provide a supportive environment where startups can access various resources essential for growth, such as mentorship, networking opportunities, workspace, and sometimes even funding. The aim is to nurture young companies and guide them through the critical early stages of development, ultimately increasing their chances of success in the competitive market.

While fostering competition in the market is important, that is not the primary function of an incubator. Providing loans to small businesses may be a feature of some incubators, but financial support is not the core purpose. Validating business ideas can occur within incubators as part of the development process, but their main focus is overall business development rather than just idea validation. Thus, the selection accurately reflects the fundamental role of incubators in the entrepreneurial ecosystem.