Campbell, Kendrick & Samuelson's (1985) incubation model The model proposed by Campbell et al. (1985) suggests four areas where the incubators create value: 1) the diagnosis of business needs, 2) the selection and monitoring of the services provided to the firms, 3) the investment of capital, and 4) the access to the working network of the incubator.  

Campbell, Kendrick & Samuelson's (1985) incubation model The model proposed by Campbell et al. (1985) suggests four areas where the incubators create value: 1) the diagnosis of business needs, 2) the selection and monitoring of the services provided to the firms, 3) the investment of capital, and 4) the access to the working network of the incubator.  

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University Incubation Centres: Centerstage for Start-up

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... Globally, government policymakers and development partners have invested in several initiatives aimed at creating favourable conditions that include policy and regulatory incentives, mechanisms to increase access to capital, and educational reform to support innovative entrepreneurship (Clarysse et al, 2007). Within this landscape of interventions, is the business incubation process, which entails a focus on strengthening dynamic, early-stage, growth-oriented enterprises and hence achieving economic growth (Moreira & Carvalho, 2012). Business incubators and related business development systems have emerged across the world as highly popular avenues for promotion of economic development (Ozdemir & Şehitoglu, 2013). ...
... Hackett and Dilts (2004) posit that outputs and performance of the business incubation hinge on the ability of a business incubator to create real incubation options by selecting weak but promising nascent firms and monitoring and supporting the tenants in the business incubator. Therefore, Hackett and Dilts emphasis on the importance of selection performance and intensity of monitoring tenants and timely assistance efforts and resource munificence yields a more holistic vision of the incubation model (Moreira & Carvalho, 2012). However, it is important to note that any incubation program success depends on the incubation practices that a business incubator adopts. ...
Article
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The business incubation process entails two major components; the incubatee selection process and the provision of an array of business support services in new venture creation in an incubator's environment. Systematic selection of new and nascent ventures is a prerequisite for exercising real options by providing business support through business coaching and access to resources that increases the chances of successful new venture creation. Therefore, incubatee selection emerges as a determinant of successful new venture creation. Business incubation in Kenya is relatively a new phenomenon. A review of literature reveals inadequate extant data and empirical evidence on what should constitute an effective incubatee selection process. Specifically, there exist gaps in incubation literature concerning structuring of the selection process that takes cognizance of the a balanced selection criteria and a heterogeneous selection team It is against this back drop that this study sought to analysis incubatee selection process and technology-based new ventures in Kenyan Business incubators. The study was informed the Hackett & Dilts Logic Business Incubator Model (2004) on incubatee selection process. The study used descriptive research design. The study population was 9 business incubator managers and 364 incubatees located in Nairobi Metropolitan. Stratified sampling was undertaken to obtain strata based on each business incubator involved in the study. For the incubatees, simple random sampling was then applied to obtain a sample size of 186 incubatee. A Semi-structured questionnaire was used to collect both quantitative and qualitative data from the incubatees. An interview schedule was used to collect data from incubator managers. Quantitative data was analyzed using SPSS that generated both descriptive and inferential statistics. Pearson's correlation coefficients indicated a positive correlation between incubatee selection process and technology based new venture creation; r=0.401, p<0.05. Bivariate analysis indicated incubatee selection process had a significant effect on technology based new venture creation, with the beta coefficients; β = 0.439, p<0.05). Majority of the business incubation managers indicated that success rate of the incubated ventures was approximately 50%. Moreover, majority of the entrepreneurs gave a low rating on harmonization of incubator objective and selection criteria. Therefore, this study recommends that business incubators in Kenya need to relook at how incubatee selection is structured to ensure that new ventures admitted to business incubators have a high success rate at the end of the incubation process. Specifically this study recommends that Kenyan business incubators need to set out very clear selection criteria that are properly harmonized with the incubator's objective. This will ensure that only deserving ventures with potential for product launching and business growth are admitted to the business incubators, and therefore increase successful new venture creation. Concerning incubatee selection actors, the study recommends the structuring of selection process that ensures that multiple actors are used in the selection process to utilize a wider pool of experts and professionals. Involvement of heterogeneous multiple teams of actors can lead to the selection of incubatees with higher chances of success in technology-based new venture creation.
... The researchers suggest four areas, i.e. 1) diagnosis of business needs, 2) selection and monitoring of all services supporting enterprises, 3) capital investment, and 4) access to an expert network. The model does not take into account the lack of entrepreneurial knowledge, other capabilities or even environmental barriers, and is limited to private incubators (Moreira et al., 2012). A more external perspective, conceptualising the incubator process as a system that supports enterprises being incubated, is presented by Smilor (1987), who neglects the internal processes occurring inside the incubator and underlines the affiliation of the incubator (academic, state, private, non-profit). ...
... They suggest that enterprises under incubation are selected from a pool of candidates, then are supported with different resources during the initial phase and are monitored on a regular basis. The outcomes refer to the survival or failure of such an enterprise (Moreira et al., 2012). Bergek and Norrman (2008) identify in their incubation model a set of components (Fig. 3). ...
Article
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People planning a business and start-up companies can use a wide range of support instruments in the first stages of their business development, the task of which is to reduce the risk associated with the implementation of a business idea. The offer available on the market includes both financial and non-financial support. One common support instrument are incubators and incubation programmes that offer assistance in the early stages of business development. Universities are an environment where incubation programmes are increasingly occupying a prominent place. They have sufficient human, organizational and administrative resources to meet the needs of innovative companies and support them with research, consultation and mentoring. The aim of this research is to discuss the typology and role of incubators in supporting business ideas and to characterise the phases of the incubation process and its models. The example of incubation programmes from Polish universities presented in the article illustrates the course of the process and the support package offered to the idea originators at a Polish university. Keywords: pre-incubation, incubator, incubation, university-based incubator, academic entrepreneurship
... Though a relatively old concept in Kenya, the same has slowed down over the past three decades. This model is designed to be capable of adding value to incubated firms with the intention of increasing the survival rates of such incubated firms (Bizzotto, 2003;Moreira et al. 2012). Firms have been grappling with among other challenges, the need for survival in the harsh business environment. ...
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Abstract The purpose of the study was to evaluate the influence of county government innovative leadership on the entrepreneurial firm performance in Kenya. The Multiple regression model was used to assess the innovative leadership and identify the influencing factors particularly on entrepreneurial firm performance. Data was collected through structured questionnaires, with a total sample of 80 respondents, selected from 20 of the 47 county units in Kenya. Data was analysed using Excel statistical tool. Results show that although county governments have programs to support entrepreneurs within their areas of jurisdiction the programs do not have a statistically significant influence on the entrepreneurial firm performance. Direct support such as credit provision in addition to promoting entrepreneurship training were not adequate. It is thought if these areas are addressed, county government leadership can positively influence firm performance and entrepreneurship development in the country. The county governments, through initiatives such as business incubators, favourable policy formulation and regulation could play an important role in changing the performance of entrepreneurial firms. They could also support them in formulating effective entrepreneurship strategies.
... This model does not have clear selection criteria, and it assumes that all potential business can be turned into viable firm because of the consideration of only internal sources of value addition in the model (Moreira et al. 2012). Campbell et al. (1985) Fig. 6 Incubation model by Smilor (1987) Smilor (1987) has gone one step further and provided organizational structure. ...
Chapter
Business enterprise (BE) contribution to a nation’s economic growth (NEG) (NEG is a nation’s overall economic growth measured by parameters like growth, domestic product, employment generation) depends upon the optimum utilization of the resources of any given economy by increasing the efficiency of existing BEs and promotion of new BEs. Progressive policy interventions are intended to ensure the optimal functioning and sustainability of these enterprises or organizations by protecting them from an exploitative and dynamic external environment using implicit (subsidies, quota, tariffs) policy tools and to address market failure. Explicit policy prescriptions include promoting Innovation, developing S&T infrastructure, as one of the critical components for ensuring a new BE’s sustainability and growth overcoming systemic barriers leading to failure and promoting interaction among innovation actors. These prescriptions and interventions resulted in the emergence of state-supported formal business incubation model leveraging both explicit and implicit policy intervention in a quintuple helix framework bringing together and engaging all stakeholders for improving knowledge creation and translation efficiency. The adoption of this model is aimed at assisting NBEs in overcoming technological, operational, financial market related and other barriers in their early stages of their life cycle to reduce the high failure/mortality rates during these stages. This study undertakes a critical review of the literature in business incubator and business incubation (BI) domain to identify the services provided by BIs and maps their critical contribution to the success of the BI-NBE (NBEs refer to those BEs at an preliminary ideation stage with unproven and/or technology or business model innovation) dyad. Our findings suggest that there is no convergence on what is an effective or ineffective BI. (For the purpose of this study, BI indicates both business incubator and business incubation and is used interchangeably.) However, there is a common consensus on the criticality of the availability of knowledge, finance and other crucial resources to the new BEs (NBE) but the way these are delivered by BIs to attain maximum impact is still not very well defined. Given this, the study proposes that a sustainable generic framework for delivery and impact assessment of BI services is critical. This framework should ideally address the weaknesses of the current approaches of BI-NBE dyad in terms of structure and diversity of service offerings. It also advocates a policy design that would facilitate a robust BI-BE engagement network to leverage their individual strengths across this network to accelerate and sustain the growth of this ecosystem resulting in monetization and wealth creation of a nation.
... The general idea of what research scholars see as business incubators is that they are institutions concerned with speeding up the growth, financial and operational stability of entrepreneurial start-ups by offering them targeted services and support (EC, 2002;Bergek & Norrman, 2008;Mendoza, 2009;Levakova, 2012;Moreira et al. 2012;Masutha & Rogerson, 2014) with a strong emphasis on knowledge agglomeration, resource sharing, innovativeness and competitiveness by creating an environment which help start-ups deal with the challenges of entrepreneurial pursuit (Phan et al. 2005;Akcomak, 2009). ...
... Business incubation program, as a tool for promoting innovation and economic development (Bergek & Norrman, 2008;Al-Mubaraki & Busler, 2011), is designed to be capable of adding value to incubated companies with the intent of increasing the survival rates of such incubated companies (Bizzotto, 2003;Moreira et al. 2012). The value adding activities are generally regarded as the business incubation process with several models developed to explain the phenomenon. ...
... The tenants then graduate from the incubation program as successful growth ventures or businesses. Hackett and Dilts (2004b), Moreira et al. (2012) in critiquing the model observes that the model is developed with the fundamental assumption that all incubated companies will survive. The Campbell model is further limited to private incubators only with it not considering the capabilities of the potential entrepreneurs, environmental barriers and a lack of a selection criterion in the selection of potential incubatees. ...
Article
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Industrialization is central if any economy is to be successful and the policy attempts at industrialization involve creating systems and institutional arrangements that can help accelerate the process of industrialization. Business incubation is also a system and an institutional arrangement to help nations industrialize by developing the SME sector. This paper hopes to understand how the business incubation process influences firm performance. The methodology adopted is a comprehensive and extensive review of literature on the incubation phenomenon. The review found that firm performance is greatly enhanced when a firm avail itself to an incubation program. Revenue growth, employment or job creation, venture funding, networking and alliance building are the performance indices most impacted by the business incubation process. The paper recommends that prospective candidates for incubation should develop their market, management and financial plans to increase their chance of being selected as tenants. Also, firms are encouraged to access the value-addition services of incubation as this greatly increases their chances of firm survival, revenue growth, employment and job creation, financial resources and networking and alliance building. Furthermore, tenants should not overstay their tenancy in an incubation program as doing so reduces their chances of survival upon graduation.
... This model does not have clear selection criteria, and it assumes that all potential business can be turned into viable firm because of the consideration of only internal sources of value addition in the model (Moreira et al. 2012). Campbell et al. (1985) Fig. 6 Incubation model by Smilor (1987) Smilor (1987) has gone one step further and provided organizational structure. ...
Preprint
Business enterprise (BE) contribution to a nation’s economic growth (NEG) (NEG is nation’s overall economic growth which includes the parameters like growth, domestic product, employment generation) depends upon the optimum utilization of the resources of any given economy by increasing the efficiency of existing and promotion of new BEs. Progressive policy interventions are intended to ensure the optimal functioning and sustainability of these enterprises or organizations by protecting them from an exploitative and dynamic external environment using implicit (subsidies, quota, tariffs) policy tools and to address market failure. Explicit policy prescriptions include promoting Innovation, developing S&T infrastructure, as one of the critical components for ensuring a new BE’s sustainability and growth overcoming systemic barriers leading to failure and promoting interaction among innovation actors. These prescriptions and interventions resulted in the emergence of state-supported formal business incubation model leveraging both explicit and implicit policy intervention in a quintuple helix framework bringing together and engaging all stakeholders for improving knowledge creation and translation efficiency. The adoption of this model is aimed at assisting NBEs in overcoming technological, operational, financial market related and other barriers in their early stages of their life cycle to reduce the high failure/mortality rates during these stages. This study undertakes a critical review of the literature in business incubator and business incubation (BI) domain to identify the services provided by BIs and maps their critical contribution to the success of the BI-NBE (NBEs refer to those BEs at an preliminary ideation stage with unproven and/or technology or business model innovation) dyad. Our findings suggest that there is no convergence on what is an effective or ineffective BI. (For the purpose of this study, BI indicates both business incubator and business incubation and is used interchangeably.) However, there is a common consensus on the criticality of the availability of knowledge, finance and other crucial resources to the new BEs (NBE) but the way these are delivered by BIs to attain maximum impact is still not very well defined. Given this, the study proposes that a sustainable generic framework for delivery and impact assessment of BI services is critical. This framework should ideally address the weaknesses of the current approaches of BI-NBE dyad in terms of structure and diversity of service offerings. It also advocates a policy design that would facilitate a robust BI-BE engagement network to leverage their individual strengths across this network to accelerate and sustain the growth of this ecosystem resulting in monetization and wealth creation of a nation.
... For public policy there are various territorial dimensions that are relevant for entrepreneurship as it is strongly affected by local, regional, economic, social and institutional factors (OECD, 1998). Specific local factors can encourage entrepreneurship such as, support programs, and measures projected and implemented by authorities and local institutions (Moreira & Martins, 2009;Moreira & Carvalho, 2012). ...
... Entrepreneurship is more than just a vehicle for the creation of jobs, competitiveness and growth, especially in rural areas: it contributes to personal enhancement and the attainment of social objectives. Furthermore, various factors play an important role in the decision-making process of new firm creation, for example, the existence of opportunities, administrative complexities, financial barriers, and attitudes and capabilities (Baron, 1998;Dunkelberg & Cooper, 1982, Moreira & Carvalho, 2012. ...
Chapter
The chapter presents an entrepreneurial perspective to rural tourism. It is based on the utilization of endogenous resources that exist within a rural region, and leads to a group of business opportunities related to tourism, craftwork, and agriculture, which are taken into account to define the strategic objectives for the ADRIMAG region. The chapter follows a qualitative approach to business opportunities. Through our analysis, it was possible to create, in a simple manner, a group of business opportunities based on the endogenous resources of the region. With this study, we expect to bring forth an entrepreneurial perspective that will sustainably foster tourism development within rural regions, but with high potential for tourism attraction.
... Other scholars comment that they have yet to encounter such a dynamic model (Phan et al., 2005). Moreira and Carvalho (2012) suggest that the search for models of the business incubation process is on a multifaceted road. It is therefore important Sithole and Rugimbana 643 to identify the characteristics of different incubating models, to understand how they work, to assess the value they can add to their particular type of NTBF, and to ascertain the ability of their staff to understand and cater to their clients' needs (Grandi and Grimaldi, 2004). ...
Article
Full-text available
One of the most important reasons for developing university technology business incubators (UTBIs) is to permit the commercialisation of technology and research by setting up new firms to graduate into fully-fledged businesses, which are normally referred to as new technology-based firms (NTBFs). Relying on the resource-based theory (RBT) and incubation models, the present research is concerned with proposing a theoretical framework for the enabling factors that influence the graduation of new technology-based firms (NTBFs) that result from the commercialisation of research and technology through to becoming established businesses from a university technology business incubator (UTBIs). A pragmatic philosophy informed the researcher’s theoretical lens. This involved the use of a multiple case study using mixed methods that entailed the use of both quantitative and qualitative research techniques in the form of semi-structured interviews with the UTBI’s management team. The most significant finding of the research is that there are a number of enabling factors that influence the graduation of NTBFs within a UTBI, the most significant of which are stringent selection and admission criteria, the business support services, financial resources, university entrepreneurial network/ mediation and organisational resources. Each of these factors is grouped into three stages: the pre incubation stage, the incubation stage and the graduation stage. The unit of analysis for this research consists of the management team within three UTBIs located in one of the University of Technology in Gauteng Province. Owing to the nature of the sample, the results may not be representative of the remaining UoTs in Gauteng. The study attempts to link the development of business ideas to factors that influence their progression into graduated businesses.
Article
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Background: Business incubation has the purpose of recruiting weak yet promising tenant-entrepreneurs or incubates. The weaknesses may include a lack of skills and abilities, lack of resources or lack of knowledge. The business case or opportunity should be promising. Further to the purpose, business incubators attempt to turn these deficient businesses into sustainable entities that can exit or graduate the incubator and survive on their own devices. Without this intervention through the incubator, it is extremely unlikely that these tenant-entrepreneurs or incubates will survive. In order to achieve the maximum likelihood of successful graduate-entrepreneurs and sustainable start-ups, business incubators must offer a full spectrum of services. These services should include access to physical premises, communal equipment, administrative support, training for skills development, access to professional and specialised skills, access to financial support, access to networking and access to mentorship. Objectives: It is the purpose of this study, firstly, to investigate and determine which of these services business incubators within the Northern Cape Province of South Africa offer. Secondly, it is the further purpose of this study to benchmark the incubators within the Northern Cape Province to international best practice models. Method: A qualitative research methodology was employed in this study. Data were collected through semi-structured interviews, transcribed and analysed through qualitative software. The sample consisted of 63 respondents from 7 business incubators within the province. The sampling method was purposive. Results: The research results obtained indicated that four incubators within the province boast a very weak service offering. Furthermore, only one incubator truly benchmarked competitively against international best practice models. Conclusion: The study provides recommendation with regards to specialist mentoring, skills development and training of entrepreneurs and incubation-practitioners, as well as access to funding and physical upgrades of incubators. The research contributes to a very sparse body of existing research on small, medium and micro-enterprise (SMME) development within the Northern Cape Province. The study provides future research questions for academic researchers.
Article
Small and medium enterprises (SME), acknowledged as tools of economic development, are faced with size-related challenges. Governments around the world design institutions to support them. Business incubation is one of such frameworks for entrepreneurial promotion and SME development. This study predicts firm performance from the constructs of the business incubation process: selection performance, business assistance intensity, resource munificence and professional management services. Using hierarchical multiple regression, the overall model was significant explaining 13.5% of the variation in firm performance with a moderate effect size. Business assistance intensity and professional management services were significant predictors while incubator selection performance and resource munificence were not significant predictors of firm performance. Incubation should be promoted as a tool for entrepreneurial promotion to complement the broader strategic entrepreneurial framework for entrepreneurship promotion. The focus should be on evolving strategies to expand and deepen incubators capacity by intensifying business assistance and professional management services to their clients.