Success or failure of an entrepreneur is reliant up on many factors, which can be either person’s own characteristics or it can be external factors associated with a person. To formulate a relevant policy for increasing the success rate of entrepreneurs produced in incubation centers, it is very important to investigate the influencing factors of entrepreneur success of failure. This is one of the most important policy relevant issue to address through academic research. The objective of the study is to examine the determinants of success and failure of entrepreneurs produced in incubation centers. The study is based on primary data collected from different incubation center, from where eighty individuals were selected to provide information for the research. Questionnaire was used for the collection of primary data. The study has used both probabilistic and non-probabilistic sampling techniques. For probabilistic techniques simple random sampling method was used while for non-probabilistic with focus group discussions and key unformatted interviews were conducted. The study adopted OLS and Binary logistic regression to build up an econometric relation between income, age, education, marital status, family background, innovation, trainings success and failure of incubators. The study found that there is a strong connection between family background, incubation center performance and success or failure of an entrepreneur in Islamabad. Also concluded that innovation and trainings are important factors for the success and the failure of entrepreneurs. Supervisor:- Prof. Dr. Usman Mustafa