Influence of Business Networking Services on Performance of Start-Up Firms Sponsored by University Incubators in Kenya

Abstract

Business Networking Services refers to access to professional business services networks of professional contacts. It involves for example connections with business angel networks and venture capital firms commonly out of reach for new young firms. Start-up firms’ failure rate is estimated at 75 % in developing and least developed countries within the first three years of operation. Business incubation assists start-up firms grow with the efficient use of business resources to become sustainable and competitive companies. The outcomes of the graduate companies are jobs creation, technology transfer, commercialization of new technologies and create wealth for economies. University business incubators (UBIs) provide a unique opportunity for start-up firms to benefit from the talent and resources located in the university, particularly in development of products that require higher level of technology and sophistication. The objective of the study was to find out how business networking services influence performance of start-up firms sponsored by university incubators in Kenya. The study adopted a descriptive survey research design with qualitative and quantitative data collected from a random sample of university sponsored graduate incubates. The study collected primary data from a sample size of 189 from a population of 372. A semi-structured interviewer administered questionnaire with open spaces for comments was used. Data was analyzed using descriptive and inferential statistics. Regression analysis was used to test the relationship between the dependent and independent variable. The study found out that business networking services had a positive significant relationship on the performance of startup firms sponsored by university incubators in Kenya. The study recommends that more universities adopt business incubation strategy which has been proven as an essential requirement in helping develop local economies through promotion of knowledge transfer, generating jobs and ability to commercialize university research.

Keywords: Business incubation, Business networking, Firm performance.