Small micro medium enterprise’s perceptions towards business incubation – chemical incubator.

Abstract

Development, growth and sustenance of Small Micro Medium Enterprise’s (SMME’s) activities has become a key policy priority for most governments around the world; including South Africa. SMME’s growth has been positively linked to employment creation, poverty reduction and wealth generation. Recognising this imperative, the South African Government has institutionalised business incubation practice to stimulate SMME growth and sustainability. Despite this commitment, however, SMME failures continued unabatedly; with many start-ups struggling to pass the infant stage; which in turn limits their contribution to socio-economic development. The aim of this study was to comparatively evaluate the general perceptions and attitudes of Incubatees and Graduates towards the Chemical Incubator Programme (Chemin). Based on qualitative research and purposive sampling, data was collected from 12 Participants i.e. 6 incubatees and 6 graduates, through semistructured interviews. Thematic analysis was used to extract meaning from the data Overall, the results suggest that Incubatees and graduates had different but complementary perceptions on the reasons for joining the incubation programme; which included infrastructure; technology, business information and skills; and exposure to chemical manufacturing practices. Although there were marked differences in attitudes towards Incubation services, however, some participants on both sides agreed that the programme added value to their business in terms of marketing, resources and business networking. Participants also differed on the role of government in funding incubators. While some Incubatees and graduates felt government had a statutory obligation to finance SMMEs, other participants felt that entrepreneurs should use their vision to grow their business rather than rely solely on state funding. This reveals differences in terms of entrepreneurial orientation among the participants on both sides, with opportunity entrepreneurs focusing on business growth, job creation and youth skills development; while survivalist entrepreneurs were concerned with subsistence. The study enhances understanding of how customised entrepreneurial learning and knowledge sharing systems can improve the innovative capabilities, growth and sustainability of incubated small businesses in South Africa.