The Sustainability and Challenges of Business Incubators in the Western Cape Province, South Africa

Abstract

Abstract:Notwithstanding the growing interest in business incubation programmes and the benefits derived from such programmes, the path is beset by numerous challenges. This paper investigates the challenges faced by business incubators (BIs) as they strive to support their clients. The study utilized a qualitative approach to collect data by way of interviews to gain in-depth knowledge and understanding of the concept and challenges of business incubators. The data were collected using structured and unstructured in-depth personal interviews, which were carried out with the respondents of business incubators in the Western Cape. The research participants for this study were limited to the business incubators on the database of a local organization that promotes small and medium enterprises (SMEs) development strategy and programmes in the Western Cape Province. All five business incubators on the database were deemed suitable for the study. The results indicated that an average of twenty-five entrepreneurs graduated from the incubation programme in the last five years. Furthermore, lack of sponsorship, production space, advanced technological facilities (prototype) and expansion to different areas were found to be among the challenges hindering incubators.

Exploring the critical factors that hinder the growth of incubatees in South Africa

“…The findings of this study also indicated that lack of entrepreneurial skills is a challenge to the growth of business incubatees. Entrepreneurial skills include creativity, innovation, risk-taking and ability to interpret successful entrepreneurial role models and identification of opportunities (Fatoki, 2012; Lose & Tengeh, 2015). The results of this research paper are in consistence with literature.…”

“…Focusing on incubator service and sustainability have been Cullen, Calitz and Chandler (2014), Dubihlela and Van Schaikwyk (2014). A close parallel has been that of Lose and Tengeh (2015) that looked at the challenges of business incubators in the Western Cape.…”

The Sustainability of Businesses in Kigali, Rwanda: An Analysis of the Barriers Faced by Women Entrepreneurs

“…Respondents thus tended to agree that lack of education and training is a challenge facing women entrepreneurs in Kigali. Lose and Tengeh [27] believe that success in business relies on training, education and experience. The statement which suggested that the lack of a support network was a challenge facing women entrepreneurs in Kigali obtained a mean value of 3.64, slightly above the neutral mean of 3.…”

“…Education, skills and the experience in industry with which an entrepreneur starts a business influence its chances of success [27]. It has also been suggested that networks facilitating the flow of information from various sources could be a key factor in the success of women's entrepreneurial ventures [28].…”

Commercialising Technical Innovation: Role of Business Incubators in Kerala

“…The B-Schools help in increasing knowledge base, by identifying opportunities, and by pointing out ways to overcome barriers imposed by ones environment. Lose and Tengeh [17] study included limited research participants to the business incubators on the database of a local organization that promotes small and medium enterprises (SMEs) development strategy and programmes in the Western Cape Province. All five business incubators on the database were deemed suitable for the study.…”