Track: Business Management

Abstract

In this age of exponential technological development and relentless globalisation, innovation and entrepreneurship have become the prime drivers of economic growth. Measures to stimulate economic growth and innovation are outlined by many governments, private sector institutions and tertiary institutions. One such measure is the establishment of business incubation to nurture nascent ventures, providing focused counselling and facilitation services, together with smart workspace and shared office facilities. Business incubation is a concept that describes a business development process that is used to grow successful, sustainable entrepreneurial ventures that will contribute to the health and wealth of local, regional and national economies. Incubators provide a platform for businesses to build their foundations. Incubators are part of a larger value chain that connects businesses to a vital support system, such as local service providers (including lawyers, corporate service providers and/or accountants) to establish relationships that will last after the business leaves the incubator.

However, the realities of global competition require an understanding on the local level of global markets and the complexities of interactions with multiple stakeholders along global supply chains. There is increasing indication that the performance of existing enterprises is meaningfully improved by networking, especially for micro business entrepreneurs, and small and medium sized enterprise (SME) owners. However, there seems to be less understanding on whether networking is a critical success factor required to ensure the growth of small and medium enterprises (SMEs) particularly those that are in an incubation programme.

This research paper seeks to highlight the importance of business networks at various stages of a business incubation process.