Perceived Effectiveness of Business Incubation: The Mediating Role of the Incubatee’s Satisfaction

Business incubators have been established to foster entrepreneurship by supporting nascent entrepreneurs throughout the venture creation and strategic management process. However, they face persistent pressure to demonstrate the value of their incubation programmes. This study evaluates incubator effectiveness from the perspective of the primary beneficiaries—incubatees—focusing on three service dimensions: infrastructure, business assistance, and networking. A quantitative survey of 73 Tunisian university-based start-ups, analysed via Partial Least Squares Structural Equation Modelling (PLS-SEM), reveals that intangible services—namely networking and business assistance—are more influential than physical infrastructure in shaping incubatee satisfaction. Findings indicate that networking exerts both direct and indirect effects on perceived financial performance, with satisfaction acting as a complementary partial mediator. The study highlights the need for a multidimensional performance framework that integrates strategic access to resources and satisfaction alongside traditional financial indicators. Implications for incubator managers and policymakers are discussed to enhance support strategies and improve service quality.