Business incubators can help fledgling firms get off the ground by providing business services and rental space, at below-market costs, for a business's first few years. The payoff for the community is more jobs. Concentrated until recently in urban areas, incubators are now succeeding in rural areas too. (JHZ)

Explains local development organizations (LDOs), tells how they operate, and gives examples of what they've done. Elaborates on characteristics shared by successful LDOs: flexability, strong and creative leadership, solid local support, adequate funding, and competent, dedicated staff. Recommends strategies for expanding existing industry and…