Business Incubators in Pakistan: State of the Art and Future Outlook

Purpose: In developing countries business incubators (BIs) have become a key catalyst for the flourishment of new ventures, due to overall weak financial health and opportunities for the startups. The purpose of this research is to evaluate the effectiveness of BIs in Pakistan and identify areas that need improvement. Design/Methodology/Approach: The study adopts a mixed-method approach of social science research, using a cross-sectional survey of BI tenants in Pakistan (n=100), triangulated with the help of in-depth interviews of key stakeholders of BIs (n=12). Data from cross-sectional survey were analyzed using descriptive statistics and Paired Samples T-test methods. Data from interview responses were analyzed with the help of MAXQDA.Findings: The study shows that the effectiveness of incubation facilities in Pakistan is less than the perceived importance and identifies which facilities tenants are most and least satisfied with. The findings of this study suggest that for BIs to be more effective in creating new ventures and providing employment opportunities, the Pakistani government must take concrete actions. New BI centers must be established to meet the market's demands and an evaluation process for existing BI centers must be implemented. To aid in the creation of new businesses in Pakistan, more university-based BIs should be established.Implications/Originality/Value: The findings of this study are equally useful for the Government of Pakistan, BIs, and fresh startups.&