The New Venture Creation Approach: The Role of Business Incubators in Kenya

Abstract

New ventures are source of innovation and change, although there are many success cases many new ventures quite before they have fulfilled their potential. Despite the growing number of business incubation amenities, the area of incubators and new venture creation is understudied. The goal of this study was to investigate the role of business incubators on new venture creation in Kenya. This study was underpinned by the Economic theory of Mark Casson, Schumpeter’s theory of Innovation, Dynamic Capability View and Theory of Business Incubators. The study used desktop analysis of existing literature on business incubations and new venture creation. The study found that business incubators are critical in naturing and developing new ventures and they are also effective in new venture creation. Several studies have focused primarily on the exterior perspective, ignoring the interior perspective, in which the entrepreneur plays a significant influence. Moreover, the studies on business incubators and the development of new ventures have been conducted in industrialized nations, yet only a few have been conducted in developing nations. Most of the study on business incubators and new venture creation had employed single research design and thus no single design is perfect. The study recommended combination of descriptive and explanatory research design to be used. Multiple regression model to be used to analyse the direct, mediating and moderating effect of business incubators and new venture creation. The reviewed studies focused on government business incubators and new venture creation. This study recommended a study on business incubators and new venture creation focusing on business incubators in universities in Kenya.