Accelerating growth of businesses through networking services, incubation infrastructure and management mentoring: A perspective of startups in Kenya

Authors

DOI:

https://doi.org/10.20525/ijrbs.v12i6.2785

Keywords:

Startups, Networking, Incubation, Infrastructure, Mentoring

Abstract

Worldwide, startup businesses are essential for any country's economic development. Despite the rapid growth of start-ups, their likelihood of success and viability remain low. This trend is more observed in developing countries due to the low uptake of business incubation services such as Kenya. The aim of the current study was to determine the effect of networking services, physical incubation, and management mentoring on the growth of start-ups in Kenya. The study was based on the social network theory, the theory of the firm, the stochastic theory and the trait theory of entrepreneurship. A cross-sectional research design was used. A sample size of 227 respondents was selected from a total population of 567 respondents using proportionate stratified and simple random sampling techniques. Primary data was collected using a structured questionnaire. The data was analyzed with multiple linear regression with the help of SPSS. The finding of the study indicated that there was a positive and significant effect between networking services, physical incubation infrastructure and management mentoring and growth of startups. The study suggests that startups should join associations like the Associations of Startups and SME Enablers of Kenya and the Association of Countrywide Innovation Hubs to access incubation infrastructure. This will allow access to investor networks, civil society programs, and government agencies, accelerating business growth. Additionally, business incubators can partner with universities for specialized research in areas like health, agriculture, and climate change through the triple helix model.

Downloads

Download data is not yet available.

References

Abdullahi, M. S., Abubakar, A., Aliyu, R. L., Umar, K., Umar, M. B., Sabiu, I. T., & Abubakar, L. S. (2015). The nature of small and medium scale enterprises (SMEs): government and financial institutions support in Nigeria. International Journal of Academic Research in Business and Social Sciences, 5(3), 525-537. http://dx.doi.org/10.6007/IJARBSS/v5-i3/1536 DOI: https://doi.org/10.6007/IJARBSS/v5-i3/1536

Abou-Moghli, A. A., & Al-Abdallah, G. M. (2019). A systematic review of women entrepreneurs’ opportunities and challenges in Saudi Arabia. Journal of Entrepreneurship Education, 22(6), 1-14. https://www.proquest.com/openview/dd47f6eb3bacfc83121711d3e4a559cc/1?pq-origsite=gscholar&cbl=28224

Abou-Moghli, A., & Al Muala, A. (2012). Impact of entrepreneurial networks in the success of business on-going stage in Canada manufacturing companies. American Academic & Scholarly Research Journal, 4(2): 1. http://aasrc.org/aasrj/index.php/aasrj/article/view/249

Accordini, M. (2013). Business Incubation As Entrepreneurship Policy: An Italian Story, https://www.tesionline.it/tesi/l-organizzazione-innovativa-partecipazione-coordinamento-e-leadership-nelle-startup-innovative/57549

Afriana, L. (2018). Assessing The Impact of Business Incubation to Startup Performances in Indonesia, http://resolver.tudelft.nl/uuid:d47e4d39-e469-49bc-a904-9d3ceb9c12e6

Aladejebi, O. (2020). The impact of entrepreneurial networks on the performance of small business in Nigeria. Archives of Business Research, 8(3): 281-293. http://dx.doi.org/10.14738/abr.83.8019 DOI: https://doi.org/10.14738/abr.83.8019

Albourini, F., Ahmad, A., Abuhashesh, M., & Nusairat, N. (2020). The effect of networking behaviors on the success of entrepreneurial startups. Management Science Letters, 10(11): 2521-2532. http://dx.doi.org/10.5267/j.msl.2020.3.043 DOI: https://doi.org/10.5267/j.msl.2020.3.043

Arumugam, B., & Ravindran, S. (2014). Success factors of incubatee start-ups and the incubation environment influencers. International Journal of Applied Business and Economic Research, 12(4), 1179–1193.

Asikhia, O. U., Ologungba, O., Akinlabi, H. B., & Makinde, O. G. (2020). Business Incubation of Small and Medium Enterprises Performance in Oyo State, Nigeria. KIU Journal of Social Sciences, 6(2), 211-218. https://www.ijhumas.com/ojs/index.php/kiujoss/article/view/864

Bliemel, M., Flores, R., De Klerk, S., & Miles, M. P. (2019). Accelerators as start-up infrastructure for entrepreneurial clusters. Entrepreneurship & Regional Development, 31(2): 133-149. https://doi.org/10.1080/08985626.2018.1537152 DOI: https://doi.org/10.1080/08985626.2018.1537152

Chatterji, A., Delecourt, S., Hasan, S., & Koning, R. (2019). When does advice impact startup performance? Strategic Management Journal, 40(3): 331-356. https://doi.org/10.1002/smj.2987 DOI: https://doi.org/10.1002/smj.2987

Churchill, N. C. & Lewis, V. L. (1983). The five stages of small business growth. University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. https://ssrn.com/abstract=1504517

Dvalidze, N., & Markopoulos, E. (2019). Understanding the Nature of Entrepreneurial Leadership in the Startups Across the Stages of the Startup Lifecycle. In International Conference on Applied Human Factors and Ergonomics, 281-292. https://link.springer.com/chapter/10.1007/978-3-030-20154-8_26

Dvalidze, N., & Markopoulos, E. (2020). Understanding the nature of entrepreneurial leadership in the startups across the stages of the startup lifecycle. In Advances in Human Factors, Business Management and Leadership: Proceedings of the AHFE 2019 International Conference on Human Factors, Business Management and Society, and the AHFE International Conference on Human Factors in Management and Leadership, July 24-28, 2019, Washington DC, USA 10 (pp. 281-292). Springer International Publishing. http://dx.doi.org/10.1007/978-3-030-20154-8_26 DOI: https://doi.org/10.1007/978-3-030-20154-8_26

Eveleens, C. P., van Rijnsoever, F. J., & Niesten, E. M. (2017). How network-based incubation helps start-up performance: a systematic review against the background of management theories. The Journal of Technology Transfer, 42(3): 676-713. https://link.springer.com/article/10.1007/s10961-016-9510-7 DOI: https://doi.org/10.1007/s10961-016-9510-7

Hironaka, C., Zariyawati, M. A., & Diana-Rose, F. (2017). A comparative study on development of Small and Medium Enterprises (SMEs) in Japan and Malaysia. Saudi Journal of Business and Management Studies, 2(4), 357-364. https://doi.org/10.21276/sjbms DOI: https://doi.org/10.21276/sjbms

Hirschman, A. O. (1958). The strategy of economic. New Haven and London, Yale University Press. https://www.scirp.org/(S(i43dyn45teexjx455qlt3d2q))/reference/ReferencesPapers.aspx?ReferenceID=1454253

Hoang, H., & Yi, A. (2015). Network-based research in entrepreneurship: a decade in review. Foundations in trends in entrepreneurship,11(1): 1-54. http://dx.doi.org/10.1561/0300000052 DOI: https://doi.org/10.1561/0300000052

Kaberia, S. K., & Muathe, S. (2021). Effect of Covid-19 pandemic on performance of women owned micro, small and medium enterprises in Kenya. International Journal Social Science Studies 9, 7. https://doi.org/10.11114/ijsss.v9i1.5089 DOI: https://doi.org/10.11114/ijsss.v9i1.5089

Karabulut, A. T. (2016). Personality traits on entrepreneurial intention. Procedia-Social and Behavioral Sciences, 229, 12-21. https://doi.org/10.1016/j.sbspro.2016.07.109 DOI: https://doi.org/10.1016/j.sbspro.2016.07.109

Karanja, Z. K. M. D. P., & Odhiambo, N. P. R. (2018). Influence of Business Networking Services on Performance of Start-Up Firms Sponsored by University Incubators in Kenya. ISSN 2222-1905 (Paper) ISSN 2222-2839

Karitu, B., Wangondu, W., & Muathe, S., (2022). A Theoretical Route towards Conceptualization of Start-ups in Emerging Markets: A Kenyan Perspective. International Journal of Research in Business and Social Science, 11 (4): 2147-4478. https://doi.org/10.20525/ijrbs.v11i4.1782 DOI: https://doi.org/10.20525/ijrbs.v11i4.1782

Kibai, M. (2018). Key Success Factors for Business Incubation Process in Kenya, http://erepo.usiu.ac.ke/11732/4289

Kibuchi J. (2016). Business Incubation Services Offered to Startup Businesses in Kenya. A Case Study of Ihub Program Unpublished Masters Project, University of Nairobi, Kenya. http://hdl.handle.net/11295/98514

Kihugu, R. W. (2017). Benchmarking Practices by Business Incubation Centres In Kenya (Doctoral dissertation, University of Nairobi). http://hdl.handle.net/11295/103351

Kimathi, B. M. (2020). Entrepreneurial Mindset and Performance of Small and Medium Enterprises in Kenya (Doctoral dissertation, JKUAT-COHRED). http://localhost/xmlui/handle/123456789/5410

Kiseleva, M. (2017). Business incubator as a support measure for start-ups in Russia and Sweden.: Comparative analysis, https://www.diva-portal.org/smash/record.jsf?pid=diva2%3A1121376&dswid=4197

Kyunga, F. (2017). Infrastructural Development and Growth of Small and Micro Enterprises in the Nairobi Section of Thika Road, in Kenya (Doctoral dissertation, University of Nairobi). http://hdl.handle.net/11295/102107

Lombardi, R., Tiscini, R., Trequattrini, R., & Martiniello, L. (2020). Strategic entrepreneurship: Personal values and characteristics influencing SMEs' decision-making and outcomes. The Gemar Balloons case. Management Decision. https://doi.org/10.1108/MD-10-2019-1416 DOI: https://doi.org/10.1108/MD-10-2019-1416

Lose, T., Maziriri, E. T., Choto, P., & Welcome Madinga, N. (2017). Navigating the reasons behind joining a business Incubation programme: Empirical evidence from entrepreneurs in South Africa. Acta Universitatis Danubius. Œconomica, 13(4). https://www.ceeol.com/search/article-detail?id=729456

Lotti, F., Santarelli, E., & Vivarelli, M. (2009). Defending Gibrat’s Law as a long-run regularity. Small business economics, 32, 31-44. https://link.springer.com/article/10.1007/s11187-007-9071-0 DOI: https://doi.org/10.1007/s11187-007-9071-0

Matotola, S., & Bengesi, K. A. (2019). Motivation as a potential gear towards business establishment by young entrepreneurs incubated in higher learning institutions business incubators in Tanzania. https://www.suaire.sua.ac.tz/handle/123456789/2756

Mmasi, S. M. (2020). An Investigation of the Impact of Business Incubation in Promoting the Competitiveness of SMEs. A Case of Business Incubator in Tanzania, Doctoral dissertation, The Open University of Tanzania. http://repository.out.ac.tz/id/eprint/2978

Muathe, S., & Otieno, V. (2022). Startup incubation and accelerators in africa; are start-ups scaling up in Kenya. American International Journal of Social Science Research, 11(1), 23-28. https://doi.org/10.46281/aijssr.v11i1.1688 DOI: https://doi.org/10.46281/aijssr.v11i1.1688

Mugenda, O. M., & Mugenda, A. G. (2003). Research methods: Quantitative & qualitative apporaches (2), 2. Nairobi: Acts press.

Mungai, D. N., & Njeru, A. (2018). Effect of business incubator services on performance of business ventures at Nairobi incubation lab, Kenya. International Journal of Science and Research, 5(5): 1500-1506. ISSN: 2319-7064 DOI: https://doi.org/10.21275/v5i5.NOV163661

Ngoma, M., Ntale, P. D., & Castro, M. (2021). Entrepreneurial activity in the Albertine Graben region of Uganda: the role of infrastructure development and entrepreneurial orientation. World Journal of Entrepreneurship, Management and Sustainable Development. https://doi.org/10.1108/WJEMSD-04-2020-0028 DOI: https://doi.org/10.1108/WJEMSD-04-2020-0028

Njau, J. M., Mwenda, L. K. M., & Wachira, A. W. (2019). Effect of infrastructural facilities support provided by business incubators on technology based new venture creation in Kenya. http://41.89.227.156:8080/xmlui/handle/123456789/817

Nyangarika, A. (2016). Impact of networking on performance of small and medium enterprises in Tanzania. SSN 2222-1905 (Paper) ISSN 2222-2839

Omweri, K. F. (2016). The role of business incubation centers in promoting youth entrepreneurship in Kenya: a case of youth entrepreneurial program at Nailab center (Doctoral dissertation, University of Nairobi). http://hdl.handle.net/11295/98307

Opoku, E. E. O., & Yan, I. K. M. (2019). Industrialization as driver of sustainable economic growth in Africa. The Journal of International Trade & Economic Development, 28(1), 30-56. https://doi.org/10.1080/09638199.2018.1483416 DOI: https://doi.org/10.1080/09638199.2018.1483416

Pettersen, I. B., Aarstad, J., Høvig, Ø. S., & Tobiassen, A. E. (2015). Business incubation and the network resources of start-ups. Journal of Innovation and Entrepreneurship, 5(1): 1-17. https://link.springer.com/article/10.1186/s13731-016-0038-8 DOI: https://doi.org/10.1186/s13731-016-0038-8

Rompho, N. (2018). Operational performance measures for startups. Measuring Business Excellence, 22(1), 31-41. https://doi.org/10.1108/MBE-06-2017-0028 DOI: https://doi.org/10.1108/MBE-06-2017-0028

Tiren, D. (2020). Assessing the efficacy of business incubation in Nairobi County, Kenya: an incubatee’s perspective (Doctoral dissertation, Strathmore University). https://su-plus.strathmore.edu/bitstreams/48e6857c-57d5-417e-9ae3-d23a4b91d94c/download

Turyakira, T., & Cathy, I. M. (2018). Networking for startup in Uganda: A conceptual paper. African Journal of Business Management, 9(2): 43-49. https://nru.uncst.go.ug/handle/123456789/7210 DOI: https://doi.org/10.5897/AJBM2014.7534

Wanambisi, A. N. (2022). Entrepreneurial Networking and Growth of Small and Medium Enterprises in Kenya (Doctoral dissertation, JKUAT-COHRED). http://localhost/xmlui/handle/123456789/5971

Downloads

Published

2023-09-14

How to Cite

Stephen M.A. Muathe, & Otieno, V. (2023). Accelerating growth of businesses through networking services, incubation infrastructure and management mentoring: A perspective of startups in Kenya. International Journal of Research in Business and Social Science (2147- 4478), 12(6), 318–326. https://doi.org/10.20525/ijrbs.v12i6.2785

Issue

Section

Related Topics in Social Science