An analysis of the effectiveness of business incubation centres for small and medium enterprise success A case in Windhoek, Namibia

Abstract

This paper analyses the effectiveness of business incubation centres (BICs) for small and medium enterprise (SME) success in Windhoek, Namibia. BICs have challenges moving existing SMEs out of the centres in order to create space for new and potential SMEs to be incubated. This suggests a lack of preparedness by SMEs to operate their businesses independently outside a supporting infrastructure. A mixed research approach was adopted to assess the completeness of the components of business models adopted by SMEs. The main findings were that BICs provide business training, facilities and a supportive environment for business operations. It was also determined that not all the services provided are equally effective for all businesses. Compared to the business model canvas (BMC), business models adopted by SMEs were found to be lacking. This paper recommends that SMEs in Namibia use complete and balanced models such as the BMC tool, to develop and expand outside incubation centres.