and contracts, business plan development, added credibility when applying for a bank loan, connections with banks and investors, and even exit options such as an IPO or acquisition help (Early, 2010 and Chandra and Fealey, 2009). But there appears to be a drawback to relying on incubators to help solve the funding issue; the number of companies that are approved and helped by incubators is a fraction of the total looking for funding assistance. According to Chandra and Fealey (2009), there were approximately 1,000 incubators in the United States in 2005. Early (2010) states that a little over 27,000 companies were provided services and help by these incubators during that year and a year later in 2010 there were still only around 1,000 incubators in this country. The growth of these organizations seems slow and the number of firms they support too few. I believe this is because incubators in the United States are “funded primarily by government grants and university and corporate support” (Chandra and Fealey, 2009). In addition to this, they also receive rental and consulting income; but it is not enough for most to become self-sustaining. The business model of incubators appears to be limiting their numbers and thus restricting their ability to help overcome the funding gap. Considering these factors and realizing that a large majority of existing incubators are not likely to be supporting social-specific firms seem to “paint a gloomier picture” for social entrepreneurship funding.
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