Catalyzing Financing and Management of Entrepreneurial Ecosystem for Successful Business Incubators and Accelerators in Tanzania Higher Learning Institutions

Abstract

Business incubators and accelerators are support mechanisms for the rapid growth of SMEs and start-ups. The general objective of the study was to explore effective strategies for establishing and governing innovation hubs to support entrepreneurs, SMEs, and start-up growth in Tanzania. Using a descriptive research design to collect primary data, the study used non-probability technique to select a sample of 50 incubators and accelerators from research-based institutes engaging in innovation and entrepreneurial activities in the country. The study findings indicate that 92.5 percent of surveyed business incubators believe lack of innovation and creativity as the major challenges in managing business incubators. Moreover, about 50 percent of surveyed business incubators use social media in marketing products produced by enterprises residing in the programme, this happens to be their main marketing strategy. Various plans have been presented by business incubators in resource mobilization, clear organizational goals and objectives scores the highest in terms of resource mobilization plans. The findings and theoretical propositions offered in this research have key implications for the theory, practice, and policy of incubators and accelerators as enablers of entrepreneurship in developing countries.