Abstract
Business incubators create value by combining the entrepreneurial spirit of start-ups with the resources that are typically available to new businesses. It is widely recognized that knowledge-based entrepreneurial companies are the main creators of economic growth, and such enterprises require special business development services. Therefore, the study aims to examine the role of business incubators in providing greater services (networking services, capital support, and training programs) in entrepreneurship development. Secondly, it also examines the mediating and moderating role of business start-up and government regulations for entrepreneurship. Using a quantitative methodology, we examine 567 samples through structural equation modeling. We find that the business incubators are playing an effective mediating role in providing networking services, capital support, and training programs to individuals and entrepreneurs, which are significant for entrepreneurship development, whereas business start-up positively mediates the relationship between networking services, capital support, training programs, and entrepreneurship development. Government regulations for entrepreneurship have a direct effect on entrepreneurship development. More importantly, government regulations for entrepreneurship have a positive moderating effect between business start-up and entrepreneurship development. Our study identifies the critical resources needed to improve the quality of business incubators and to ensure the availability of such resources to improve entrepreneurship development.
Highlights
The present study is being carried out in Pakistan, which is a developing country and the sixth-largest country in terms of population, with 2.55% of the world’s overall population
Our results indicate that business start-up positively mediated the relationship among networking services, capital support, training programs and entrepreneurship development
This study aims to develop a concept to examine the role of business incubators in providing grater services to support entrepreneurship development
Summary
The present study is being carried out in Pakistan, which is a developing country and the sixth-largest country in terms of population, with 2.55% of the world’s overall population. According to the total population report, in Pakistan, 60% of young people are under 30 years. An economic survey shows that 24.3% of Pakistanis live below the poverty line [1]. Most repugnant about this situation, which worsens every year, is that in the long run it will prove a threat to Pakistan’s economy [2]. The Pakistan Bureau of Statistics 2018 shows that Pakistan’s labor force input rate is 54.4%. According to these statistics, 3.7 million people were unemployed from 2017 to 2018 [3,4]. A large amount of the labor force steadily increases, and the increase in joblessness continues; new employment opportunities should be created. [5]
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