The role of business incubators in creating sustainable small and medium enterprises

Southern African Journal of Entrepreneurship and Small Business Management

Field Value
Title The role of business incubators in creating sustainable small and medium enterprises
Creator Hewitt, Lia M.M. Janse van Rensburg, Lodewikus J.
Subject entrepreneurship; small business; business incubators; emerging ventures; business incubator criteria; resources; small and medium enterprises.
Description Background: Despite the prevalence of business incubators as platforms through which new ventures can be technically and financially supported, there is controversy on the extent to which a one-size-fits-all approach to business incubator support can be applied to all emerging or existing small and medium enterprises (SMEs).Aim: To explore the value addition and role of business incubators to assist entrepreneurs to grow their businesses to enable them to become entrepreneurial leaders.Setting: State of SMEs; Business incubators; the development of entrepreneurs in South Africa.Method: A literature survey regarding the nature of business incubators was conducted, making use of a convenience sample comprising a pre-published list of 58 business incubators.Results: Business incubators see themselves in a position of strength and are not in a true partnership with the incubatee. Most business incubators only support Broad Based Black Economic Empowerment candidates, ignoring the needs and value-add of a diverse SME population. Findings highlighted the conflicting information about the state of SMEs in South Africa, thereby calling for policies to clearly and uniformly report reliable statistics on the status of SMEs to enable more focussed support for SMEs.Conclusions: Business incubators must clearly conceptualise their own business operating model and articulate their value-add to prospective emerging entrepreneurs. Post COVID-19 it is essential to fast tract the sustainability of SMEs and role clarification and differentiating are two important factors that need to be taken into consideration by both business incubators and entrepreneurs to ensure focussed support and allocation of public and private funding.
Publisher AOSIS Publishing
Contributor none
Date 2020-08-25
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — Exploratory deductive desktop research
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/sajesbm.v12i1.295
Source The Southern African Journal of Entrepreneurship and Small Business Management; Vol 12, No 1 (2020); 9 pages 2071-3185 2522-7343
Language eng
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Coverage South Africa current small medium businesses
Rights Copyright (c) 2020 Lia M.M. Hewitt, Lodewikus J. Janse van Rensburg