CONSTRUCTION BUSINESS & PROJECT MANAGEMENT CONFERENCE · Vol. 2021

The effect of Incubation Programme Small, Micro and Medium Enterprises Development: A cross-sectional survey

Makgopa F Tshehla and Tsholofelo M Mokoma

Keywords: Business incubation, enterprise development, enterpreneural skills, SMMEs

Abstract

The research examines the effect of business incubation on the Small-Medium, and Micro Enterprises (SMMEs)' growth and development as perceived by incubatees in a South African context. The study addresses the challenges SMMEs had before joining the incubation programme, the entrepreneurial skills required for SMMES success, and the entrepreneurial skills delivered on business incubation programs. The research was carried out in the province of Gauteng in South Africa. The study adopted a quantitative research methodology and a cross-sectional research design. A purposive sample of 32 Incubated SMME from 6 incubators was selected within the public incubation program of the Small Enterprise Development Agency (SEDA), evaluating the effect of business incubation on SMME development and growth. Three key outcomes were assessed to measure growth and development: increase in turnover, job creation and expansion either in markets, products and incubation programmes, and the perceived value-added of incubation support services to black-owned businesses. For the incubation program to be successful, its service offerings should be aligned with the needs of the SMMEs. Through incubation, the challenges which SMMEs identified before joining the incubation program should be eliminated. Business Advisory, Business Development, Funding and Lack of access to infrastructure are the most prevalent barriers faced by SMMEs before to joining the incubation program.