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Role of Business Incubators as a Tool for Entrepreneurship Development: The Mediating and Moderating Role of Business Start-Up and Government Regulations

Author

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  • Cai Li

    (School of Management, Department of Management Science & Engineering, Jiangsu University, 301 Xuefu Road, Jingkou District, Zhenjiang, Jiangsu 212000, China)

  • Naveed Ahmed

    (School of Management, Department of Management Science & Engineering, Jiangsu University, 301 Xuefu Road, Jingkou District, Zhenjiang, Jiangsu 212000, China)

  • Sikandar Ali Qalati

    (School of Management, Department of Marketing, Jiangsu University, 301 Xuefu Road, Jingkou District, Zhenjiang, Jiangsu 212000, China)

  • Asadullah Khan

    (Department of Business Management, Karakoram International University Gilgit, District Gilgit 15100, Pakistan)

  • Shumaila Naz

    (Faculty of Business and Management Sciences, The Superior College 20 km riwand Road, Lahore 54000, Pakistan)

Abstract

Business incubators create value by combining the entrepreneurial spirit of start-ups with the resources that are typically available to new businesses. It is widely recognized that knowledge-based entrepreneurial companies are the main creators of economic growth, and such enterprises require special business development services. Therefore, the study aims to examine the role of business incubators in providing greater services (networking services, capital support, and training programs) in entrepreneurship development. Secondly, it also examines the mediating and moderating role of business start-up and government regulations for entrepreneurship. Using a quantitative methodology, we examine 567 samples through structural equation modeling. We find that the business incubators are playing an effective mediating role in providing networking services, capital support, and training programs to individuals and entrepreneurs, which are significant for entrepreneurship development, whereas business start-up positively mediates the relationship between networking services, capital support, training programs, and entrepreneurship development. Government regulations for entrepreneurship have a direct effect on entrepreneurship development. More importantly, government regulations for entrepreneurship have a positive moderating effect between business start-up and entrepreneurship development. Our study identifies the critical resources needed to improve the quality of business incubators and to ensure the availability of such resources to improve entrepreneurship development.

Suggested Citation

  • Cai Li & Naveed Ahmed & Sikandar Ali Qalati & Asadullah Khan & Shumaila Naz, 2020. "Role of Business Incubators as a Tool for Entrepreneurship Development: The Mediating and Moderating Role of Business Start-Up and Government Regulations," Sustainability, MDPI, vol. 12(5), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:1822-:d:326364
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    2. Shivani Shivhare & V. Shunmugasundaram, 2024. "How Government, Social and Personnel Support Leverage the Sustainability in Start-ups: The Moderating Role of Board Gender Diversity," Indian Journal of Corporate Governance, , vol. 17(2), pages 300-327, December.
    3. Reem Al Sharif & Shaligram Pokharel & Mohamed Arselene Ayari & Marwa Essam & Salwa Aqeel, 2022. "Enabling Open Innovation in Digital Startups through the Incubation Program—A Case of Qatar," Sustainability, MDPI, vol. 14(11), pages 1-17, May.
    4. Shehu Rabiah Na-Allah & Noor Hazlina Ahmad, 2022. "Entrepreneurial Orientation and Venture Creation in Nigerian Context: Assessing Mediating and Moderating Roles of Self-Efficacy and Entrepreneurial Support among Graduates," Sustainability, MDPI, vol. 14(9), pages 1-25, April.
    5. Marco Fidel Flórez & Jhon Fredys Linares & Eduardo Carrillo & Francisco Milton Mendes & Bruno de Sousa, 2022. "Proposal for a Framework to Develop Sustainable Tourism on the Santurbán Moor, Colombia, as an Alternative Source of Income between Environmental Sustainability and Mining," Sustainability, MDPI, vol. 14(14), pages 1-25, July.
    6. Qalati, Sikander Ali & Yuan, Li Wen & Khan, Muhammad Aamir Shafique & Anwar, Farooq, 2021. "A mediated model on the adoption of social media and SMEs’ performance in developing countries," Technology in Society, Elsevier, vol. 64(C).
    7. Phallapa Petison & Sooksan Kantabutra, 2022. "A Quest for a Sustainable Social Enterprise Model: The Case of Amphawa Chaipattananurak, the Kingdom of Thailand," Sustainability, MDPI, vol. 15(1), pages 1-31, December.
    8. Sonia Chetouane & Hania Chetouane, 2023. "Digital Business Incubators and Digital Entrepreneurship: The case of Digital Incubation Center in Qatar," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 9(1), pages 33-50, July.
    9. Rabiah Na-Allah Shehu & Noor Hazlina Ahmad, 2023. "Entrepreneurship education and graduate’s venture creation activities: roles of entrepreneurial support and entrepreneurial capabilities," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-20, December.
    10. Sofia Gomes & João Ferreira & João Morais Lopes & Luís Farinha, 2022. "The Impacts of the Entrepreneurial Conditions on Economic Growth: Evidence from OECD Countries," Economies, MDPI, vol. 10(7), pages 1-20, July.
    11. Faiza Zahid & Kalsoom Durrani & Dr. Saeedah Shah & Dr. Shakeel Ahmed & Dr. Bashir Muhammad, 2023. "Youth Unemployment and Social Stability: Investigating the Linkages and Possible Solutions in the Context of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(4), pages 477-484.
    12. Wang Jiatong & Cai Li & Majid Murad & Fakhar Shahzad & Sheikh Farhan Ashraf, 2021. "Impact of Social Entrepreneurial Factors on Sustainable Enterprise Development: Mediating Role of Social Network and Moderating Effect of Government Regulations," SAGE Open, , vol. 11(3), pages 21582440211, July.
    13. Hu, Yubei & Ahmad, Ali J. & Lu, Dawei, 2023. "Performance management challenges at Chinese business incubators: A systematic literature review," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    14. Sikandar Ali Qalati & Wenyuan Li & Naveed Ahmed & Manzoor Ali Mirani & Asadullah Khan, 2020. "Examining the Factors Affecting SME Performance: The Mediating Role of Social Media Adoption," Sustainability, MDPI, vol. 13(1), pages 1-24, December.

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