The Influence of Business Incubation on Performance of Start-Ups in Nairobi City County

Abstract

Establishing influencing mechanisms for nurturing new ideas into actual business, especially on new technological platforms, necessitates business incubation and business strategy to secure networks that guarantee growth. The study sought to establish the Influence of business incubation on the performance of start-ups in Nairobi City County, Kenya. The study adopted a positivist research philosophy to explore new knowledge through the verification of observable evidence. This approach enabled the researcher to derive information logically from empirical data using the scientific method thereby testing the hypotheses about the construct under theoretical underpinnings. This study followed a cross-sectional survey design because it assured similar data collection procedures and precise verification across many respondents at a particular point in time. The study obtained 210 responses from start-ups using the services of any of the five business incubators in Nairobi City County. This study applied Structural Equation Model (SEM) to analyze data and deduce conclusions. The study revealed that business incubation had a significant influence (β=1.8547, P=0.000) on the performance of start-ups in Nairobi City County. The study recommends that the government at the national and county level ought to develop policies that will ensure the integration of training to young entrepreneurs by establishing functional business incubation centers. This move will enhance the transmission of ideas, information, or research to the market.

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