Business Incubators – A Cure or Curse – A Study focused on the Perception of Young Entrepreneurs in Oman

Abstract

Business incubators support the young entrepreneurs to improve their business idea and make their ventures successful. Though this is true, a good number of young entrepreneurs do not focus on joining these incubators due to their differences in perception towards business incubators. This study attempts to throw light on the perceptions of young and prospective Omani entrepreneurs towards business incubators, by focusing on 250 young individuals, following tertiary education in the higher education institutions (HEIs) in Oman. The information collected were analyzed using Principal Component Analysis and Multiple Linear Regression techniques. The results showed that individuals’ perception towards the support mechanism available at the incubators along with professional guidance and network support could play a positive role in encouraging them to join the incubation program, while assumed negativity related to the possibility of losing their cherished vision and possible increase in startup costs, could play a negative role on the likelihood of joining business incubators. These findings will help the incubators, Universities and policy makers to redefine their business practices to improve the effectiveness of their services.