Empirical Analysis of Factors Affecting Growth of Technology Based Business Incubators in Kenya: The Case of Kenya Industrial Research & Development Institute (KIRDI)

Abstract

Techno-based incubators have been in Kenya since 1967 to support SMEs in the manufacturing sector and nurture them to grow into medium and large industries.  Despite the many years of incubation concept, Kenya has experienced slow growth of techno-based incubators, registering only six notable techno-based incubators, most being institutions of higher learning.  Further, despite existence of incubators past statistics show that three out of five businesses including those in manufacturing sector still fail within first few months of operation.  This paper is a report of an empirical study carried out to analyze factors influencing growth of techno-based incubators in Kenya from the perspective of an existing technology based incubator at KIRDI.  The research was qualitative, using descriptive design and employed a case study approach, based on a census of staff running the four KIRDI incubator centres, in both South B and South C Campuses of the Institution. An interview schedule and questionnaires incorporating Likert-type scales were developed to collect data on the variables. The findings established a strong positive relationship (r=0.751) between independent variables and dependent variable, however further analyzed each independent variable has its own weight on the dependent variable.

Keywords: Business Incubation, Technology, Small and Medium Enterprises