One viable economic development option for rural areas is the creation of business incubators--facilities that aid in the early stages of growth of an enterprise by providing rental space, services, and business assistance. Business incubators promote community development by diversifying the economic base, enhancing the community's image as a center for innovation and entrepreneurship, and creating jobs. Most business incubators are located in urban areas, but in the past two years several rural incubators have been initiated including projects in aging industrial areas and rurally isolated non-industrial areas of Western Illinois, Northwest Pennsylvania, Ohio, and Missouri. In planning and operating these rural incubators, development officials have had to consider the number of potential clients in the area, marketing strategies for the incubator, and the level of economic and community support available for incubator development. These considerations varied in relative importance depending on the type of rural area the incubator was located in, its degree of affiliation with a university, and the type of incubator facility, e.g., manufacturing, retail, or high technology. Strategies to overcome the problems associated with rural business incubators included aggressive marketing plans, commercialization of university research, and diversification of funding sources. (JHZ)