You are on page 1of 24

Role of incubation Centers in

Entrepreneurial Success of
incubatees Start ups in
Pakistan
By Anum zahra
&
Zuha yahya

Abstract
This study can be categorized as empirical .
This study explore the impact of incubation
centres facilities on the success of business
launches by incubates among 100 students
drawn from public & private universities of
Pakistan.
The study adopted a survey design, two
research questions & four hypothesis were
raised for the study.

Continued
Data were collected using structured
questionnaire titled managers
questionnaire about facilities of
incubation center, incubates
questionnaire.
The data collected were analyzed
using SPSS software. findings
highlights that facilities provided by
incubation centre influences the
business success of incubates.

Introduction
The business incubators seeks to effectively
link talent, technology, capital and know how
in order to leverage entrepreneurial talent ad
to accelerate the development of new
companies (semilor and gill 1986)
The history of business incubators dates back
to 1942 in the united states of America
(Chinsomboon 2000). The first documented
incubators known as Batavia industrial Centre
(BIC) located in Batavia, New York and were
started in 1959.

Continued
There are 99 higher education institutions
offering business education in Pakistan. Their
concern has been the rapid formation of
business schools across Pakistan trying to
develop socio-economic and quality academic
hubs.
The first technology incubation center of
Pakistan established in academia 2005 by
Pakistans premier university NUST as a mean
to replicate the concept of incubators in
Pakistan.

Continue.
TIC is part of universitys drive to prove
itself as a world class learning center and
is amongst many advanced institutions
set-up at its over 700 acres state-of-theart a campus.
Higher education commission of Pakistan
have given funds to 36 (public & private)
universities in Pakistan to establish
ORIC(office of research , innovation and
commercialization).

Continued
Whose purpose is to establish
business incubation centers and start
working for the training of Young
&talented graduates to start their
own businesses.
The business incubation centre of the
following public and private
universities are taken under
consideration in this study.

Continued
This study will measure the performance of
incubatee that he shows after getting
training from incubation center and check
what type of improvement shown by them
in their performance.
It will fill a gap as the quantitative study
has not yet been conducted regarding real
assessment of incubation centers in
Pakistan.

Continued
It would be analyze, whether incubatee
entrepreneurial competency and
incubatee perspective of business support
from incubation Center is the missing link
between incubation facilities and business
success.
The data is collected through personal
observation of the training programs &
environment provided by incubation
centers in universities.

Continued
To test the model empirically through
collecting data via questionnaire from
incubation centers and their incubatees
who are running their businesses
successfully.
There is positive and significant impact of
incubation centers training on
performance and success of
entrepreneurial start-ups by Incubatees.

Ending paragraph of introduction


The rest of paper is organized as follows.
The next section presents literature review
concerning the incubation facilities and
their impact on success of business.
It then follows by empirical part which
describes the data, variables and research
methodology. The next section presents
result and discussion on empirical findings
finally the last section provides conclusion
of the study.

Quick View of Literature


Review
(Bejarano 2012) In their review of business
incubation research seen (M Hacket and
David M. Dilts 2004) have defined business
incubation as a process in acted by business
incubators, angel investors, universities and
venture capital organization in order to assist
and accelerate the entrepreneurial process.
The business incubators attempt to facilitate
the new venture development through cost
containment and access to resources.

Continued
Several studies do attribute business incubation
with providing enabling skills, knowledge and the
potential for increasing a firm survival rate and
success (Sherman, H., Chappell, D.S. 1998, Voisey,
P., Gorell, L., Jones, P., & Thomas, B. 2006, Sherman,
H.D. 1999, and Akcomak, I.S., Taymaz, E. 2004).
The literature emphasizes several criteria and
indicators to evaluate the role of incubation centers
on the incubatees new start-ups. Such as
incubation facilities and business success.(Lin, Li et
al. 2008)(Voisey, Gornall et al. 2006),(Al-Mubaraki
and Busler 2012).

Continued
Incubators can add value to new
ventures by lending credibility
through association and access to
share professional facilities, business
support and coaching additional
resources and networks and have a
potential effect in long term survival
and subsequent growth of firms.

Statement of problem
It has been realized previously that the
type of education offered in most
Public & private institutions produce
graduates for whom there is no market
demands. Graduates are produced for
wage employment in the formal sector.
Unemployment of graduates from
Pakistan Universities has become a
major national problem.

Continued
The period between graduation and
employment dates has continued to lengthen
and this has become a source of frustration for
graduates.
In the circumstance, it is obvious that the only
viable option is self employment.
Currently most universities have initiated
Business Incubation centers in the hope that it
will equip university graduates with skills
necessary to start their own businesses, to be
job creators, instead of job seekers.

Continued
This is sequel to the directives of 36
universities in Pakistan by HEC to
establish Business Incubation Centers to
enhance the skills acquisition of graduates
for self employment.
This paper therefore attempts to find out
the impact of Facilities provided by
incubation centers on the entrepreneurial
success of Incubatees start-ups in
Pakistan.

Research Questions
Two research questions guided the
study as follows:
(1) The impact of facilities provided
by incubation centers on incubatees
start-ups success.
(2) The level of skills incubatees
acquire after being graduated from
incubation centers.

Hypothesis

Hypotheses
Three hypotheses were formulated to
direct the study
H1: There is significant positive
relationship between Incubation
facilities & business success.
H2: IEC mediates significantly the
relationship between IF and BS.
H3: IPI mediates significantly the
relationship between IF and BS.

Research methodology
Study context and sample characteristics
Since we are interested in examining the impact of
incubation facilities on the entrepreneurial business
success.
For the purpose of examining the impact of incubation
facilities, this study considers facilities provided by business
incubation centers in public and private universities
For data collection we collected the data from the business
& technology incubation centers of public & private
universities from all over Pakistan.
Questionnaire for this research was adopted from the study (Managing readiness in enterprise
systems-driven organizational change 2008, KEE-YOUNG KWAHK and HEE-WOONG KIM).

Continued
Data is gathered from Mangers of incubation centers
and incubatees of incubation centers.
The questionnaires were filled in month of December
and January .
The questionnaire consisted of the total 183 questions
which are classified according to variable of the study.
First 26 questions are related to general information of
managers, next 34 questions are related to facilities
provided by incubation centers, next 16 are related to
general information of incubatees, next 13 related to
facilities being provided by incubators, next 9 questions
related to perceived institutional support,

Continued
Next 14 related to entrepreneurial knowledge, next 41
questions related to motivation & skills of incubatees
developed due to being in incubators, next 15
questions related to measure business success of
incubatees, next 12 questions related to impact of
business on social life of incubatees. effort expectancy
these were taken from (2008, KEE-YOUNG KWAHK and
HEE-WOONG KIM) ,
The question items were measured with a 5 -point
Likert-type scale ) with anchors ranging from strongly
disagree to strongly agree and in some questions
logit probit technique were used (more yes the much
better

Data collected from following


Universities

Quaid -I- Azam University Islamabad ,


National University Of Science And Technology NUST Rawelpindi,
Comsat Institute Of Information And Technology Islamabad,
University Of Punjab Lahore,
University Of Veterinary And Animal Sciences Lahore,
University Of Agriculture Faisalabad,
Lahore University Of Management Science LUMS,
University Of Management And Technology Lahore,
Sukkur Institute Of Business Administration Sukkur,
Institute Engineering And Technology Lahore,
PCSIR Pakistan Council Of Scientific And Industrial Research,
University Of Engineering And Technology Peshawar,
Institute of business administration Karachi,
Seed Incubation Center Karachi.
International Islamic University Islamabad,