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INFLUENCE OF BUSINESS INCUBATION SERVICES ON GROWTH OF SMALL AND MEDIUM ENTERPRISES IN KENYA


Alex Mahugu Wanyoko

Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya


ABSTRACT

The importance of SMEs in employment creation, widening of tax revenues and wealth creation is appreciated and support needs to be channeled to grow this sector. The role of business incubation services in supporting growth of SMEs has not been thoroughly examined. The objective of this study was to establish the influence of business incubation services on the growth of SMEs.  The study targeted the graduates of business incubation services who were running their own SMEs. A descriptive research design was adopted and a stratified random sampling technique was used to group and identify respondents from homogenous groups. The study was guided by the research objectives which sought to establish the influence of business management skills, networks, access to sources of finance and innovation incentives provided during business incubation on growth of SMEs in Kenya. Spearman’s correlation was used to analyse the results and obtained 0.78 which implies that the business incubation services strongly and positively influence the growth of SMEs in Kenya.


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