Tall Tales or Success Stories? A Scrutiny of the Business Incubation Policy and Landscape in India

ABSTRACT Business incubators (BIs) have been in existence since the 1950s, and they claim to assist early‐stage entrepreneurs to convert ideas into sustainable enterprises by providing resources like space, mentoring, business services, networks, and capital. Governments across the world promote BI as a policy tool, but a deep dive into the literature shows limited empirical evidence about their effectiveness. With increasing investment of public funds into incubators, it is necessary to assess their performance and success in meeting the objective of enabling new ventures. Informational roadblocks in understanding the state of business incubation can lead to convenient assumptions that all is well with the policy and practice of business incubation. This article reviews the evolution of policy, practice, and literature on Business Incubation in India and finds a vacuum with respect to systematic studies and understanding of business incubation as a process. The paper concludes by advocating for an evidence‐based approach to policy formulation and emphasizes the need for rigorous evaluation and research to ascertain the true impact of BIs on India's entrepreneurial ecosystem.