A Reflection Approach on Business Incubation Services: Accelerating Startup Businesses in Kenya

Abstract

The focus of this study was to determine how business incubation services accelerate the growth of start-ups in Nairobi City County, Kenya. The specific objectives were to examine the effect of networking services, physical incubation infrastructure, management advice, financial resources, and business planning on the growth of startups. The theories of the firm, stochastic theory, social network theory, real option theory and trait theory of entrepreneurship anchored the study variables. A descriptive research design was used, and a sample of 227 respondents was selected using proportionate stratified and simple random sampling techniques from a target population of 567 startups that had been in an incubation process. A questionnaire was used to collect primary data, and the data was analyzed using descriptive and regression statistical techniques. The findings indicated that there was a significant and positive relationship between networking services, physical infrastructure, management advice, financial resources, and business planning and the growth of startups. In order to have access to physical infrastructure, startups are encouraged to join startup associations like the Association of Startups and SME Enablers of Kenya, the Association of Countrywide Innovation Hubs, and other independent incubation facilities. A clear act governing startups can offer tax incentives to startups, reducing costs in the form of financing and providing tax breaks to startup investors, improving their financial standing. Incubator owners are encouraged to take startups through business planning courses that are critical to ensuring they scale up their businesses. Finally, through the triple helix model, business incubators can partner with universities and government agencies to create synergy instead of competing among themselves.