Rhet Analysis. prompt

Do business Incubation Matter to Small Business?

Business incubators are significant to small business startups. They help in gearing the growth of small business start-ups. Business incubators help in managerial services, funds and providing offices to business start-ups and new companies. Companies in business incubation often spend two years approximately where they share most office resources with other companies under the same incubator. The most important aspects in incubation are the effectiveness, management, performance and the success factors that come with incubation.

Regarding business incubators, it appears that small businesses respond to incubation services with positivity for their growth. Lubica (2012) examined the role of business incubators, the space they have filled and the services incubators are offering to their clients. Most business incubators having noticed a loophole in the entrepreneurship systems, they have come up in large numbers to fill the void by providing services that are hard for the business startups to provide themselves since not everyone is able to support a business from the start until it becomes successful.

While based on research, business incubator is not in a position to make replacement of personal efforts or business initiative with resourcefulness. Mostly, entrepreneurs rely on consultants at the centre of their businesses for replacements (Lubica 2012). New companies are the benefactors of business incubators who are creating environment, which is favorable to the company, and ensuring real time support for smooth operations of the business. In addition, incubators provide counseling as well as educational services to their clients thus equipping them with the right knowledge regarding their businesses.

Gstraunthaler (2010), points out the business of business incubators is servicing the host companies and fulfilling the main demands of their stakeholders. Incubators help the new companies and businesses to go through their first phase in operations successfully. With the first phase of business being the toughest, businesses need support financially and in most cases with professional and managerial guidance. Incubators therefore fill that void caused by lack of the basic services of starting businesses by helping them work in their idea until it emerges profitable. However, since this study was mostly based on the economic growth because of incubation services, it is not clear about the full roles of incubators in the business start-ups.

Mothibi (2014) conducted a study examining the influence of business incubation services on the performance of small business enterprises in the tourism industry by assessing the importance of the incubators and their effectiveness. By indicating financial support, infrastructure, training, networking and marketing to be one of the services, the study was aimed to access the impact of incubation services on the turnover rate of small business enterprises in the tourism sector. Mothibi (2014) through the study noted that incubation services are essential to the small business start-ups and new companies in the tourism industry. The turnover rate is more based on the services of the incubators in the first phase of the business. With the right infrastructural facilities in place, finances and managerial support, the businesses appear to do better than the businesses lacking incubation services.

However, the efficiency of the business incubators matters. For a business to be successful it must get the right and quality services from the incubators. Quality services roll down the failure of business and bring about success, which is the main aim of all the businesses seeking incubation services. For an idea to become profitable there must be good strategy in place to work up the stages of business growth until there is stability. Mothibi (2014) concluded that the benefits that come with incubation services highly appreciated by new companies and small market enterprises.

Rizzi et al. (2017) are the authors of Importance of Incubation Processes from the Perspective of the Incubated and Graduated Companies. In their study, they look at the importance of incubation services based on the development and viability of the small business enterprises. According to Rizzi et al. (2017), business incubators help in steering and operating new companies and small businesses in bid to make their idea become more productive and modernize the activities carried out in the businesses. The viability of the businesses is noted in the ability to survive in the competitive market through the new-based technologies, which the incubators give critical support. However, more study need to be done on whether the development of incubated companies is because of incubation.

Ayatse, Fidelis, Nguwasen, Kwahar, and Akuraun, (2017) conducted a study on the Business incubation processes and firm performance examining the performance of the firms based on incubation services. Ayatse et al. (2017) described business incubators to be an institution, which is more concerned with the development and success of their host companies by putting the right resources in place. By giving targeted and strategic services, incubators help in speeding up the growth of the entrepreneurial startups.

Based on the management and accounting the concept of performance of a firm is assessed. Incubation processes are noted to be the great contributors of the development of a firm by playing the key roles in the first phased backed up by continuous and steady support of the operations of the business under incubation. Ayatse et al. (2017) describes the role of business incubators to be core in bringing about growth and maintaining good performance of firms. However, there is call to expand more studies on whether firms under business incubators fail in their first phase of their business operation.

Eshun (2009) has authored Business Incubation as a Strategy: A longitudinal study, which focuses on the redesign of business structures to adapt business incubation for growth. The study states that incubation process is a vital resource, which helps new companies and small businesses to strategize themselves for growth. Business incubators have been important agents in ensuring the growth of companies is steady and the operations are profitable. According to Eshun (2009), incubators have been in the center of helping business managers to come up with crafted strategies essential for their business success.

In general, the research on this topic states that business incubators are important to business start-ups for their growth and survival in the competitive market. The research also shows that most of the entrepreneurs who are starting small businesses rely on the incubation services in the first phase of their operations. Hence, it is recommended that businesses do use business incubators for early stage support, which comes as financial infrastructural facilities, educational services, consultation and managerial services. The extent to which the services are rendered to the businesses depends with the size of the business and the client’s specification tailored to their development.

Business incubation are mostly sponsored by municipal entities and public institutions, which include colleges and universities. The goals of these institutions is to help young entrepreneurs and provide them with required financial support and other technical services to help grow their business. There are many business incubators nationwide and they provide the owners of the startup business with office space rendered below the market rates. There are also staff which will provide the needed expertise which will help in developing business and marketing plans which will help in development of the business-wide fledged incubator. Most businesses spend two years in the incubator thence survive on their own. During incubation, the companies share items such as office secretarial, production expenses and overhead operations with other companies (Mumtaz, Shafi & Zafar, 2017).

Many universities are running business incubation centers which are tailored to assist students establish their businesses, hence creating jobs and earning revenues. The innovative ideas are used to fill the gap between the academia industries and the student lectures by creating formative lectures and workshops for students and entrepreneurs. The incubation centers are vital in business success and help in promoting job seekers to job providers. In Pakistan, 72 companies were incubated in one year alone and they contributed to 74% of revenue. Thousands of job have resulted from thousands of incubation centers although the centers may lack many required resources that might lead to the desired success. Start-ups lack management skills, marketing channels and marketing techniques, which are used to overcome the barriers they are facing in running their business.

Mumtaz, S., Shafi, F., & Zafar, F. (2017). Role of Technology Business Incubators to Nurture Entrepreneurship: A Study on Pakistani Universities. Retrieved 19 November 2017, from

Works Cited

Ayatse, Fidelis A., Nguwasen Kwahar, and Akuraun S. Iyortsuun. "Business Incubation Process and Firm Performance: An Empirical Review." Journal of Global Entrepreneurship Research, vol. 7, no. 1, 2017, pp. 1-17, ABI/INFORM Collection, https://search.proquest.com/docview/1865277646?accountid=45049, doi:http://dx.doi.org/10.1186/s40497-016-0059-6.

Eshun,Joseph P.,,Jr. "Business Incubation as Strategy." Business Strategy Series, vol. 10, no. 3, 2009, pp. 156-166, ABI/INFORM Collection, https://search.proquest.com/docview/194897289?accountid=45049, doi:http://dx.doi.org/10.1108/17515630910956570.

Gstraunthaler, Thomas. "The Business of Business Incubators." Baltic Journal of Management, vol. 5, no. 3, 2010, pp. 397-421, ABI/INFORM Collection, https://search.proquest.com/docview/754323082?accountid=45049, doi:http://dx.doi.org/10.1108/17465261011079776.

Lesakova, Lubica. "The role of business incubators in supporting the SME start-up." Acta Polytechnica Hungarica 9.3 (2012): 85-95.

Mothibi, Gloria. The Influence of Business Incubation Services on the Performance of Small Medium Enterprises in the South African Tourism Industry, Academic Conferences International Limited, Kidmore End, 2014, ABI/INFORM Collection, https://search.proquest.com/docview/1674836160?accountid=45049 .

Rizzi, Denise I., et al. "The Importance of Incubation Processes from the Perspective of Incubated and Graduated Companies." Journal of Information Systems and Technology Management : JISTEM, vol. 14, no. 2, 2017, pp. 263-279, ABI/INFORM Collection, https://search.proquest.com/docview/1944208621?accountid=45049, doi:http://dx.doi.org/10.4301/S1807-17752017000200007.

Mumtaz, S., Shafi, F., & Zafar, F. (2017). Role of Technology Business Incubators to Nurture Entrepreneurship: A Study on Pakistani Universities. Retrieved 19 November 2017, from