Business Incubation and Business Development Process in Kenya: Challenges and Recommendations.

Abstract

Since Kenya’s independence, an array of business assistance programmes ranging from sheltered estates to export-processing zones, not forgetting the numerous financial-assistance schemes, have been introduced with the objective of empowering budding indigenous entrepreneurs and promoting economic development. Business incubation is one such instrument. In this article, we use a cross-sectional research design to find that there are disparities between how respondents rated the importance of business-incubation process with actual services received. Surprisingly, they received fewer services than anticipated and yet most of the suggestions made on how to promote business incubation in Kenya revolve around how to harness the business-incubation process. As the incubation concept is relatively new, clear macro policy guidelines would be necessary if the full potential of business incubation is to be exploited for the benefit of the nation. We suggest some guidelines that could help to identify pertinent elements of the incubation process, and how the different stakeholders can be connected effectively with incubation activities, while generating some measurable outcomes. Future research based on longitudinal studies may provide an in-depth analysis of the business situation in Kenya.