Physical and virtual incubators and early‑stage start‑ups in Ogun State, Nigeria
DOI:
https://doi.org/10.24917/20833296.211.15Keywords:
incubation, innovation, micro-scale enterprises, physical, start-ups, virtualAbstract
Business incubation is one of the mechanisms to reduce the rate of small business failure and support vibrant start-up businesses in developing countries like Nigeria. This study therefore aims to in- vestigate the impact of physical and virtual incubators on early-stage start-up businesses in Ogun state, Nigeria. A descriptive research design and purposive sampling technique were employed for this study with 152 early-stage start-up businesses within the Ijebu-North Local Government area of Ogun state covering the major towns of Oru, Ilaporu, Awa, Ago-Iwoye, Ijebu-Igbo and Mamu forming the sample for the study. Empirical findings show that a positive and significant relationship exists individually be- tween physical and virtual incubators and early-stage start-ups in Ogun State, Nigeria. Furthermore, the combined effect of physical and virtual incubators has also revealed a positive and significant relationship with respect to these start-ups. The study concluded that physical and virtual incubators have signifi- cantly transformed the landscape in Nigeria, playing instrumental roles in nurturing and accelerating their growth. It is recommended that stakeholders, including government agencies, private investors and corporate entities should continue to invest in physical and virtual incubators to expand their reach and capacity. In addition, those providing incubators should tailor their support services to the specific needs of Nigerian start-ups, taking into account the unique challenges they face, such as limited access to funding, infrastructural deficits and regulatory hurdles.
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