Abstract
The role of business incubation in fostering entrepreneurship and SMEs development has generated a strong interest among policymakers in recent years. Even among scholars, there is a general consensus that entrepreneurship is pivotal to economic growth in both developing and developed countries. This study investigated the role of business incubators on entrepreneurship and SMEs development in Nigeria. The population of this study comprised of 60 incubatees in Oyo and Lagos State National Board of Technological Beneficiaries (NBTI). Yamane formula was employed to determine the sample size. The sample size for this research study was 60 respondents (30 incubatees in Oyo State and 30 incubatees in Lagos State). The sampling validity was used to access the validity of the data. The study made use of statistical tools which include: analysis of variance (ANOVA) and correlation efficient in testing hypotheses where applicable. The responds gotten from the questionnaire was sorted, coded and the Statistical Packages for Social Sciences (SPSS) was used for the analysis. This study found that business incubation coaching has a positive significant on human capital management towards entrepreneurship performance and also revealed that incubation business knowledge has a positive significant on the sales turnover level of entrepreneurship performance. This research has shown that 70% of the all startup ventures that survive the first three years of operations passed through the incubation programs. The study recommended that the incubation centers should emphasize more on their coaching and technical knowledge, as the result of findings shows that coaching and technical knowledge acquisition contributes 61.3% and 73.6% respectively towards entrepreneurship performance in terms of human capital management and their productivity performance level. JEL Classification: L26, M53, M1
Highlights
Business incubation from a layman point of view is to help train startup enterprises in order for them to survive the modern business competitive environment (Chen, 2009)
Small and medium scale enterprises (SMEs) is considered as an impediment to further economic development and growth, SMEs in Nigeria often fail within their first three years of operations as a result of low technical capabilities, low entrepreneurial skills, limitation of their sizes among others, have been adduced to their low survival rate, as a result of these factors, and for SMEs to survive in this modern age of global market, business incubation programs was introduced to help give advice, assistance and to nurture SMEs for survival(Adegbite, 2001)
This study is an important study that helps to evaluate the role of governmental incubation programs on entrepreneurship performance and SMEs development
Summary
Business incubation from a layman point of view is to help train startup enterprises in order for them to survive the modern business competitive environment (Chen, 2009). Incubator can be seen from the angle of premature birth, when a premature baby would be put in an incubator for a period of time in order for the baby to develop Such process applies to a startup business that needs to develop and survive the challenges in the modern business environment towards its success (NBIA, 2009). If incubators intermediate between incubatees and venture capitalists or other professional service organizations it will allow incubatees to obtain valuable talent and market knowledge (Albort & Ribeiro, 2016;Peters et al,2004). These notions give important insights in the knowledge acquisition process. Based on the problem statement, the following research questions are posed (i) what is the effect of business incubation coaching on firms’ performance in terms of Human Capital Management? (ii) To what extent does the incubation business knowledge acquisition is related to incubatee sales turnover?
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