Business Incubation in Dar es Salaam

Abstract

Business incubation is increasingly emphasized on development agendas globally as a tool for entrepreneurship, employment and economic growth. Previous studies focus on comparing European and US business incubators, and outcomes of business incubation in sub-Saharan African settings are comparatively unknown. This paper contributes to the understanding of business incubation in Tanzania by focusing on three themes of business incubation identified from 43 semi-structured interviews with entrepreneurs and people working with entrepreneurs in Dar es Salaam: 1. The role of the entrepreneur and how it influences business incubation; 2. The business incubator aim and outcome; 3. Perceived constraints for business incubation in Dar es Salaam. Findings include: 1. The variety of entrepreneurship demands additional types of support to generate a valuable contribution; 2. There is a risk that business incubators become excluding organizations, cementing existing roles in society; 3. Business incubators may compensate for constraints on entrepreneurship, but it is important to make them fit local needs.