Incubate-based challenges and deficiencies to successful business incubation in Northern Cape, South Africa

Abstract

BACKGROUND : Incubates are individuals who are start-up entrepreneurs and have deficiencies vested in their own personal capabilities. These personal deficiencies or shortcomings originate from a lack of entrepreneurial experience; a lack of entrepreneurial orientation; and a lack of entrepreneurial and management skills. It is unclear which personal deficiencies are applicable or unique to incubates within the Northern Cape province, South Africa.

PURPOSE : As South Africa's unemployment rate is at the highest it has ever been, the question is posed to government regarding what is being done to improve the situation. This study focuses specifically on identifying the personal deficiencies of incubates within the incubator sector and exactly why these factors are negatively impacting incubates.

SETTING : This study was conducted amongst incubates, incubator managers and incubator staff within the Northern Cape province, South Africa.

METHODOLOGY : Semi-structured interviews were conducted amongst 63 participants who were Northern Cape incubates. A purposive non-probability sampling strategy was used whereby homogenous and snowballing sampling were used. The interview data was transcribed and analysed into research themes aligned within entrepreneurship.

FINDINGS : The main deficiencies identified included a lack of: (1) entrepreneurial experience; (2) entrepreneurial orientation; and (3) entrepreneurial skills.

VALUE : New themes on entrepreneurial deficiencies amongst incubates are identified that are unique to the region and provides recommendations for future research. Professional development, a diversification of commercial activities, along with a selection instrument for applicant-entrepreneurs in incubators within the region are recommended.