This study offers an analysis of the role of incubator industries in the local economy of Westfield, Massachusetts. It presents the results of a survey of 25 owners of small firms which have been in business for less than 10 years, have fewer than 20 employees, manufacture a product, and are registered as doing business in Westfield. The sample size represents approximately 90 percent of all firms in the City which fit the criteria noted above. It is recognized that the sample is quite small and that great care must be used in applying the recommendations to other communities. Yet, while this is simply a case study, it nevertheless serves to identify critical problems and to show how institutional and governmental actions can help to correct these problems. In terms of a contribution toward helping smaller municipalities to understand the needs of small businesses, this must be considered as a first step.