Evaluating the Effectiveness of Business Incubation: A Correlation-based Analysis of Success Indicators

Description

Page: 497-500

Matome Simon Masipa¹, Reginald Mulalo Ndwamai², and Phathutshedzo David Lavhelani³ (Department of Management and Entrepreneurship, Tshwane University of Technology, Pretoria, South Africa¹, Department of Human Resource Management and Labour Relations, University of Venda, Thohoyandou, South Africa² and
Department of Applied Management, University of South Africa, Pretoria, South Africa³)

Business incubators play a crucial role in fostering entrepreneurship and stimulating economic development. Nonetheless, there remains a lack of consensus regarding the criteria that define their success, complicating the measurement of their impact. The absence of a uniform framework results in varied assessments by different stakeholders, which leads to discrepancies in evaluations. This study investigates the effectiveness of business incubation by identifying essential success indicators and analysing their interrelationships. Employing Pearson’s correlation coefficient, the study reveals the connections among these indicators and their effects on the outcomes of incubation. Adopting a quantitative methodology, data were gathered from a range of business incubators, concentrating on performance metrics and the perspectives of stakeholders. The results indicate that perceptions of “success” are often contingent upon the expectations of the participants, underscoring the necessity for a more systematic and inclusive evaluation framework. By explaining these interconnections, this study adds to the ongoing discourse surrounding business incubation, providing insights that may enhance policy development and improve the assessment and support of incubators.