Incubators and Micro and Small Enterprise Growth: A Narrative Literature Review

Abstract

This article presents a narrative literature review that aims to accomplish three objectives: (1) to describe the role of external support—namely, the incubator program—in encouraging micro and small business growth; (2) to explain the concept of the incubator program; and (3) to identify the typologies in the execution of entrepreneurial incubator programs. Findings from the review show that external support is required in the early growth of the life cycle indicated by the “growth through creativity” and “growth through direction” phases in the Greiner Growth Model and the “existence” and “survival” stages in the Churchill and Lewis Growth Model. The incubator concept is centered around providing basic, specific amenities and services to support the selected MSEs growth. Incubators are a form of external support that aim to assist the growth of start-up MSEs. Finally, four typologies are identified based on the degree of supervision and range of services offered.