A study on the factors of business incubation

Although that Business Incubators are present worldwide in relatively large numbers, academic papers provide us with contradictory outcomes of the effect and performance of Business Incubators. This study’s purpose was to identify causes for these contradictory outcomes through identifying factors that influence Business Incubation. Twelve factors have been identified in which six are considered as structural factors (mission, funders and stakeholders, incubator expertise, infrastructure, selection and graduation) and six factors in the process of Business Incubation (business network, financial network, tenant network, short term coaching, long term coaching and trainings). The effects of these factors have been analyzed on a Macedonian Business Incubator through the use of a single case study combining viewpoints of both the Business Incubator as eight tenants through the use of qualitative methods. The tenants considered had to be longer than six months in the Business Incubator, but despite this threshold most companies were small and not growing. This study concludes, within the limitations of the single case study, that a lack of stakeholder support in combination with an underdeveloped implementation of process activities can be pivotal factors for a lack of performance of Business Incubators. Stakeholder support thereby influences the implementation of factors, such as graduation and infrastructure.