HOW DOES BUSINESS INCUBATION AFFECT GROWTH OF FIRMS? EVIDENCE FROM ETHIOPIA

Prof. K.Sambasiva Rao; Hailemariam Gebremichael

Volume : VI, Issue : II, February - 2017

HOW DOES BUSINESS INCUBATION AFFECT GROWTH OF FIRMS? EVIDENCE FROM ETHIOPIA

Prof. K. Sambasiva Rao, Hailemariam Gebremichael

Abstract :

Business incubators are typically considered as providers of resources and services to entrepreneurs so as to promote the creation and growth of ventures. This paper is, therefore, dealing with two difficulties: Does business incubation has an impact on the growth of firms? If it is the case, to what extent does the support given by incubators determine the likelihood of growth of firms? To realize this, a survey data were collected from one hundred thirteen tenant companies. The result of this study shows that there exists a very low, positive but not significant relationship between Business Incubation and growth of firms in Ethiopia. Moreover, the survey result shows that the dimensions of business incubation (physical resource, business support, and networking) do not have a significant impact on the growth of the Ethiopian firms.