The Role of Business Incubators in The Development of Entrepreneurship in Yemen

Abstract

This research aims to identify the role of business incubators in developing entrepreneurship and creating new commercial enterprises. The research focuses on the pre-incubation stage, which is the critical stage in shaping the intention of entrepreneurs. It also focuses on factors such as incubator's performance, desirability self-efficacy, facilitation, feasibility, and perceived risk) that affect the success of entrepreneurship projects. The data was collected in the form of two types of questionnaires, a questionnaire for entrepreneurs who are within the incubation program, and a questionnaire for business incubators. The questionnaires were distributed on paper with a cover letter explaining the nature and purpose of the questionnaire. The data was analyzed and checked for reliability, and descriptive statistics were generated based on the data. The results showed that there are no standards to measure and monitor the performance of incubators, and there is no correlation between incubators and other official agencies. The results also revealed that the factors affecting entrepreneurs are closely related to the incubators’ performance levels because they affect the success or failure of the incubated projects. The majority of incubates indicated that funding is the main obstacle in their work in addition to the lack of multiple skills. Another finding of this study was that the entrepreneurs who joined the incubator program were inspired by the growth potential and lack of entrepreneurial skills. The current study provides an insight into the role of business incubators in developing entrepreneurship in Yemen. Recommendations are presented in this study for entrepreneurs incubated in the study environment in order to improve their current level, as well as for incubators to develop the level of services within the standards set by specialists and to provide an appropriate environment. Recommendations are also presented for the competent authorities and the foundation that support the incubators in order to organize the incubation process and-set standards.