Effectiveness of business incubation centres in promoting entrepreneurship in Kerala

Abstract

Entrepreneurship has a key role in promoting innovation, social change, and economic expansion. The mission of business incubators is to help new companies get off the ground by connecting them with experienced businesspeople, funding, and other resources. Kerala is renowned for its high literacy rates, competent workforce, and developing start-up ecosystem. This study evaluates the impact of Business Incubation Centres in supporting entrepreneurship in the state. The research's primary objectives are to determine how BICs affect entrepreneurs' ability to start and grow their businesses, how incubatees feel about the services they receive, and what obstacles they encounter when trying to make use of these resources. The purpose of this research is to learn how BICs in Kerala contribute to the entrepreneurial ecosystem as a whole by looking at how they deal with issues including lack of capital, difficulty getting into markets, and lack of mentorship. This paper examines the impact of incubation services on innovation, job creation, and business growth through a systematic approach. It also assesses the programs and policies of the Keralan government that have an effect on BIC operations. Policymakers, incubator managers, and entrepreneurs can all benefit from the findings, which suggest ways to make BICs more effective in their entrepreneurship-fostering efforts. While BICs in Kerala have made great strides in fostering an entrepreneurial ecosystem, the research shows that getting advanced funding, specialised mentoring, and access to markets are still tough. According to the research, the majority of startups are tech-driven and funded by individual savings and grants. Personalised incubation programs are essential for non-technical businesses because of the unique challenges they have owing to factors like limited resources and educational backgrounds. In addition, the study reveals that different incubatees' perspectives on services are affected by aspects including gender, business type, patents, experience, and education. While non-technical firms look for marketing and mentorship services, technological startups prioritise R&D help. In spite of BICs' generally beneficial effects, the research highlights the necessity for improved sector-specific resources, especially for rural and non- technical companies. To maximise the efficiency of incubation, it is essential to use advanced funding mechanisms, enhance market access techniques, and establish personalised mentorship programs. Findings also highlight the significance of incubation services being strategically aligned with the unique difficulties encountered by various business structures, including but not limited to sole proprietorships, partnerships, and corporations. Ultimately, the research highlights how crucial it is for the BICs in Kerala to embrace a fresh and active strategy for incubation. To greatly improve the entrepreneurial ecosystem, services should be tailored to meet the specific challenges experienced by varied entrepreneurs, coordination among stakeholders should be strengthened, and high-impact services should be expanded. The state of Kerala will be able to set an example for sustainable entrepreneurial development thanks to these upgrades, and other regions will be able to use them as a blueprint. Business Innovation Centres (BICs) in Kerala can help bring new ideas to market, which could lead to job creation, economic diversification, and long-term company growth. The importance of enhancing incubation programs to make the most of their potential in fostering a strong entrepreneurial ecosystem is highlighted by this study.