Abstract:
BACKGROUND: Business incubators (BIs) are considered enablers of the entrepreneurial
ecosystem, however there remains a lack of consensus as to whether incubators are effective or
even as to how incubator efficacy should be measured.
AIM: This study seeks to develop a consolidated framework for measuring the efficacy of BIs
using stakeholder theory as its theoretical basis. This study set out to answer the following
research questions:
• What is the relevance of stakeholder theory to incubator efficacy measurement?
• What stakeholder groups are relevant to BIs in South Africa?
• What relationships between stakeholder groups and perspectives on BI efficacy exist that
would underpin a framework for measuring incubator efficacy?
SETTING: Empirical research was conducted with BIs operating within South Africa, with
various incubator types, contexts and industry focus included in the study.
METHODS: A sample of nine incubator managers were interviewed as part of this exploratory
qualitative study, demonstrating the breadth of the incubator industry in South Africa.
RESULTS: A framework comprising two distinct but related perspectives on incubator efficacy
is proposed. Further to this, two additional concepts – incubator-stakeholder conflict and
restrictive incubator context – were identified.
CONCLUSION: This study proposes a consolidated framework for measuring the efficacy of BIs,
considering a variety of stakeholder perspectives, and may inform policymakers regarding
business incubation in the future.
CONTRIBUTION: This study identifies and defines incubator-stakeholder conflict as a concept,
making a theoretical contribution to the field. Additionally, the study proposes a comprehensive
stakeholder-based framework proposed for measuring incubator efficacy.
