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The Sustainability and Challenges of Business Incubators in the Western Cape Province, South Africa

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  • Thobekani Lose

    (Graduate Centre for Management, Faculty of Business, Cape Peninsula University of Technology, Cape Town 7535, South Africa)

  • Robertson K. Tengeh

    (Department of Entrepreneurship and Business Management, Faculty of Business, Cape Peninsula University of Technology, Cape Town 7535, South Africa)

Abstract

Notwithstanding the growing interest in business incubation programmes and the benefits derived from such programmes, the path is beset by numerous challenges. This paper investigates the challenges faced by business incubators (BIs) as they strive to support their clients. The study utilized a qualitative approach to collect data by way of interviews to gain in-depth knowledge and understanding of the concept and challenges of business incubators. The data were collected using structured and unstructured in-depth personal interviews, which were carried out with the respondents of business incubators in the Western Cape. The research participants for this study were limited to the business incubators on the database of a local organization that promotes small and medium enterprises (SMEs) development strategy and programmes in the Western Cape Province. All five business incubators on the database were deemed suitable for the study. The results indicated that an average of twenty-five entrepreneurs graduated from the incubation programme in the last five years. Furthermore, lack of sponsorship, production space, advanced technological facilities (prototype) and expansion to different areas were found to be among the challenges hindering incubators.

Suggested Citation

  • Thobekani Lose & Robertson K. Tengeh, 2015. "The Sustainability and Challenges of Business Incubators in the Western Cape Province, South Africa," Sustainability, MDPI, vol. 7(10), pages 1-14, October.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:10:p:14344-14357:d:57586
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    References listed on IDEAS

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    Cited by:

    1. Thobekani Lose & Zinzi Nxopo & Eugine Maziriri & Welcome Madinga, 2016. "Navigating the Role of Business Incubators: A Review on the Current Literature on Business Incubation in South Africa," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(5), pages 130-140, OCTOBER.
    2. Marcin Olkiewicz & Radosław Wolniak & Michaline Eva-Grebski & Anna Olkiewicz, 2018. "Comparative Analysis of the Impact of the Business Incubator Center on the Economic Sustainable Development of Regions in USA and Poland," Sustainability, MDPI, vol. 11(1), pages 1-22, December.
    3. Simon Nsengimana & Robertson K. Tengeh & Chux Gervase Iwu, 2017. "The Sustainability of Businesses in Kigali, Rwanda: An Analysis of the Barriers Faced by Women Entrepreneurs," Sustainability, MDPI, vol. 9(8), pages 1-9, August.
    4. Alexandra Tsvetkova & Rhiannon Pugh & Jana Schmutzler, 2019. "Beyond global hubs: Broadening the application of systems approaches," Local Economy, London South Bank University, vol. 34(8), pages 755-766, December.
    5. Linus Nkem & Robertson K. Tengeh, 2017. "Drivers for the Formation of Informal Financial Associations by Immigrant Entrepreneurs in South Africa: the Case of Cameroonians," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(5), pages 107-122, OCTOBER.
    6. Alsen Florian Kapinga & Calkin Suero Montero & Godfrey Issac Mwandosya & Esther Rosinner Mbise, 2018. "Exploring the contribution of business and technology incubators to women entrepreneurs’ business development in Dar es Salaam, Tanzania," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-14, December.
    7. Charles Karani & Patience Mshenga, 2021. "Steering the sustainability of entrepreneurial start-ups," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 223-239, December.

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