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Business incubators in developing countries: characteristics and performance

Author

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  • Rustam Lalkaka

Abstract

Since the last decade, the revolution in information technologies and liberalisation of trade regimes have created enormous opportunities for knowledge-based businesses as well as challenges for planners to create the one billion new jobs now needed the world over. The business incubation centre (BIC) helps tackle the obstacles faced by entrepreneurs and facilitates the venture creation process. While numbers are increasing - to around 3,500 worldwide including over 1,500 in the developing countries - their performance and sustainability are being questioned. The determinants of success in the Olympiad of venture creation can be expressed as five interlinked rings: public policy that stimulates entrepreneurial businesses and provides the business infrastructure; private sector partnerships for mentoring and marketing; knowledge base of learning and research; professional networking, national and global; and community involvement to promote entrepreneurism and cultural change. This paper outlines the distinguishing characteristics of incubators in selected developing countries. Based on recent experiences, good practices and the lessons (to be) learned are drawn. Case examples from China, Brazil and other developing countries indicate the variety of approaches.

Suggested Citation

  • Rustam Lalkaka, 2003. "Business incubators in developing countries: characteristics and performance," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 3(1/2), pages 31-55.
    • Handle: RePEc:ids:ijeima:v:3:y:2003:i:1/2:p:31-55
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    Citations

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    Cited by:

    1. Deutschmann, Mareike, 2007. "What difference a 'pre' makes: University business preincubators in Germany. A national survey," Lüneburger Beiträge zur Gründungsforschung 5, Leuphana University of Lüneburg, Department of Entrepreneurship & Start-up Management.
    2. Ismail Ayman, 2020. "A Framework for Designing Business-Acceleration Programs: A Case Study from Egypt," Entrepreneurship Research Journal, De Gruyter, vol. 10(2), pages 1-16, April.
    3. Sungur, Onur & Dulupçu, Murat Ali, 2013. "İşletme Kuluçkaları ve Bölgesel Kalkınma: Kavramsal Çerçeve ve Literatür Bulguları [Business Incubators and Regional Development: Conceptual Framework and Findings from the Literature]," MPRA Paper 51833, University Library of Munich, Germany.
    4. Danny Soetanto & Marina van Geenhuizen, 2006. "Determinants of University Spin-Offs’ Growth: Do Socioeconomic Networks and Support Matter?," ERSA conference papers ersa06p467, European Regional Science Association.
    5. repec:rri:wpaper:201006 is not listed on IDEAS
    6. Junbo Yu & Mark Middleton & Randall Jackson, 2010. "Geography of Business Incubator Formation in the United States," Working Papers Working Paper 2010-10, Regional Research Institute, West Virginia University.
    7. Serge Francis Simen & Gérol Sylvère Nganafei, 2018. "Comment influencer positivement le succès des incubateurs universitaires de start-up technologiques ?," Post-Print halshs-01785627, HAL.
    8. Aruna Chandra & Wei He & Tim Fealey, 2007. "Business Incubators in China: A Financial Services Perspective," Asia Pacific Business Review, Taylor & Francis Journals, vol. 13(1), pages 79-94, January.
    9. Sven Dahms & Suthikorn Kingkaew, 2016. "University Business Incubators: An Institutional Demand Side Perspective on Value Adding Features," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(3), pages 41-56.
    10. Junbo Yu & Peter Nijkamp, 2010. "Methodological Challenges and Institutional Barriers in the Use of Experimental Method for the Evaluation of Business Incubators: Lessons from the US, EU, and China," Working Papers Working Paper 2010-04, Regional Research Institute, West Virginia University.
    11. Aruna Chandra, 2007. "Business Incubation in Brazil: Creating an Environment for Entrepreneurship," NFI Working Papers 2007-WP-25, Indiana State University, Scott College of Business, Networks Financial Institute.
    12. Junbo Yu & Mark Middleton & Randall Jackson, 2010. "Toward the Geography of Business Incubator Formation in the United States," Working Papers Working Paper 2010-06, Regional Research Institute, West Virginia University.
    13. repec:rri:wpaper:201010 is not listed on IDEAS
    14. Heinrichs, Simon & Tischler, Joachim & Walter, Achim, 2014. "Leistungsprofile von Inkubatoren technologiebasierter Unternehmen: Eine empirische Bestandsaufnahme," EconStor Preprints 96158, ZBW - Leibniz Information Centre for Economics.
    15. Junbo, Y. & Stough, R.R. & Nijkamp, P., 2008. "Governing Technological Entrepreneurship in China and the West," Serie Research Memoranda 0019, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    16. Aruna Chandra, 2007. "Approaches to Business Incubation: A Comparative Study of the United States, China and Brazil," NFI Working Papers 2007-WP-29, Indiana State University, Scott College of Business, Networks Financial Institute.
    17. repec:rri:wpaper:201004 is not listed on IDEAS
    18. Mrkajic, Boris, 2017. "Business incubation models and institutionally void environments," Technovation, Elsevier, vol. 68(C), pages 44-55.
    19. Littlewood, David C. & Kiyumbu, Wilkister L., 2018. "“Hub” organisations in Kenya: What are they? What do they do? And what is their potential?," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 276-285.

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