Increasing access to business incubation services for cottage start-ups to promote inclusive entrepreneurship in Southwest Uganda
Abstract
In the last 30 years, Uganda has grappled with rising unemployment, notably impacting small businesses, with 85% failing within the first five years. This trend is pronounced in the cottage industry, where 46% of businesses couldn't sustain operations in 2017. In Mbarara district, 65% of cottages established in 2015 had closed or relocated by 2019. This study explores the impact of business incubation support services on reducing cottage start-up failures and promoting inclusive entrepreneurship in Mbarara City. Examining 800 start-ups in handicrafts, soap making, pottery, tailoring, and shoe making, the study employed a correlational research design. The data, collected through a Likert scale questionnaire, revealed that access to finance, capacity building, and information technology (ICT) adoption accounted for 13.2% of the variation in cottage enterprise growth potential. Notably, increased finance positively correlated with growth, while capacity building showed no significant association. ICT adoption, however, had a negative correlation. The study emphasizes the need for cottage entrepreneurs to receive more training on product improvement, additional capital, equipment, and partnerships. In conclusion, access to capacity building, funding, and ICT adoption is pivotal for cottage enterprise expansion, advocating for incubation support services to enhance collaboration, funding, equipment, and product improvement training for cottage entrepreneurs.
Downloads
References
Bandara, K. B. T. U. K., Jayasundara, J. M. S. B., Naradda Gamage, S. K., Ekanayake, E. M. S., Rajapackshe, P. S. K., Abeyrathne, G. A. K. N. J., & Prasanna, R. P. I. R. (2020). Entrepreneurial marketing & performance of small & medium enterprises in developed and developing economies: a conceptual exploration.
Beck, T., Demirgüç-Kunt, A., & Merrouche, O. (2013). Islamic vs. conventional banking: Business model, efficiency and stability. Journal of Banking & Finance, 37(2), 433-447.
Chege, S. M., Wang, D., & Suntu, S. L. (2020). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 26(2), 316-345.
Cuthbertson, R. W., & Furseth, P. I. (2022). Digital services and competitive advantage: Strengthening the links between RBV, KBV, and innovation. Journal of Business Research, 152, 168-176.
Endris, E., & Kassegn, A. (2022). The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia. Journal of Innovation and Entrepreneurship, 11(1), 20.
Eton, M., & Nkamusiima, D. (2023). Access to finance and women entrepreneurship development in the Kigezi subregion, Uganda. Journal of the International Council for Small Business, 4(4), 317-329.
Fabrizio, C. M., Kaczam, F., de Moura, G. L., da Silva, L. S. C. V., da Silva, W. V., & da Veiga, C. P. (2022). Competitive advantage and dynamic capability in small and medium-sized enterprises: a systematic literature review and future research directions. Review of Managerial Science, 16(3), 617-648.
Hanaysha, J. R. (2023). Exploring the Relationship between Entrepreneurial Marketing Dimensions, Brand Equity and SME Growth. IIM Kozhikode Society & Management Review, 12(1), 22-38.
Hanlin, R., & Okemwa, J. M. (2021). Interactive learning and capability-building in critical projects. Youba Sokona, Vice-Chair of the Intergovernmental Panel on Climate Change (IPCC), 138.
Hasanah, A. U., Shino, Y., & Kosasih, S. (2022). The Role of Information Technology in Improving the Competitiveness Of Small And SME Enterprises. IAIC Transactions on Sustainable Digital Innovation (ITSDI), 3(2), 168-174.
Hernandez, A. A., Juanatas, R. A., Escolano, V. J. C., & Elvambuena, M. D. E. (2022, May). Green Information Technology Readiness of Small and Medium Enterprises in the Philippines: A Survey. In 2022 7th International Conference on Business and Industrial Research (ICBIR) (pp. 472-477). IEEE.
Lazaro-Mojica, J., & Fernandez, R. (2021). Review paper on the future of the food sector through education, capacity building, knowledge translation and open innovation. Current Opinion in Food Science, 38, 162-167.
Islam, A., Wahab, S. A., & Latiff, A. S. A. (2022). Annexing a smart sustainable business growth model for small and medium enterprises (SMEs). World Journal of Entrepreneurship, Management and Sustainable Development, 18(2), 1-24.
Kikawa, C. R., Kiconco, C., Agaba, M., Ntirampeba, D., Ssematimba, A., & Kalema, B. M. (2022). Social Media Marketing for Small and Medium Enterprise Performance in Uganda: A Structural Equation Model. Sustainability, 14(21), 14391.
Kumar, R., & Shukla, S. (2022). Creativity, proactive personality and entrepreneurial intentions: examining the mediating role of entrepreneurial self-efficacy. Global Business Review, 23(1), 101-118.
Kyakulumbye, S., & Pather, S. (2022). Understanding ICT adoption amongst SMEs in Uganda: Towards a participatory design model to enhance technology diffusion. African Journal of Science, Technology, Innovation and Development, 14(1), 49-60.
Lazaro-Mojica, J., & Fernandez, R. (2021). Review paper on the future of the food sector through education, capacity building, knowledge translation and open innovation. Current Opinion in Food Science, 38, 162-167.
Leitão, J., Ratten, V., Braga, V., & Antunes, R. (2022). The role of tourism entrepreneurship in the Iberian Peninsula. In Tourism entrepreneurship in Portugal and Spain (pp. 1–8). Springer.
Madan, B., & Halkias, D. (2020). Emancipated Entrepreneurship in the European Space Sector: The Case of Richard Branson’s Virgin Galactic as a Driver for Space Tourism. Available at SSRN 3820593.
Maksum, I. R., Rahayu, A. Y. S., & Kusumawardhani, D. (2020). A social enterprise approach to empowering micro, small and medium enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 50.
Manning, S., & Vavilov, S. (2023). Global development agenda meets local opportunities: The rise of development-focused entrepreneurship support. Research Policy, 52(7), 104795.
Mbarara District Annual Report (2021).
Mbowa, H. S., Businge, M. P., Ssemaluulu, P., & Eton, M. (2023). Effect of women empowerment on women-owned business performance in Wakiso District, Uganda. International Journal of Financial, Accounting, and Management, 5(3), 343-358.
Mhlanga, Y. S. (2022). Exploring innovations in clothing customization as a potential growth strategy for South African SMEs in the clothing industry (Doctoral dissertation, University of Johannesburg).
Mian, F. (2023). The role of facilitators in the legitimization of foreign entrepreneurs.
Mmadabuchi, O. C. (2021). Cottage business and its motivating factors in Awka, Anambra state Nigeria. Journal of psychology and behavioral disciplines, COOU, 1(1).
Mohd Raof, N., Ab Rahim, S., Mukhtar, D., & Muhammad, M. Z. (2020). The challenges for small and medium enterprises (SMEs) in the cottage industries. Advanced International Journal of Banking, Accounting and Finance (AIJBAF).
Nag, B. (2022). An empirical study of post-graduate students at College of Agriculture, Raipur towards entrepreneurship.
Nindhita, Y., Subekti, H., Musfiyana, R., & Lestari, S. U. (2022). Analysis of the Effect of Information Technology Development, Absorbility Capacity on MSMe Business Performance. J. Econ. Finance. Manag. Stud.
Njanike, K. (2019). The factors influencing SMEs growth in Africa: A case of SMEs in Zimbabwe. In Regional Development in Africa. Intech Open.
Ouimette, M., Chowdhury, I., & Kickul, J. R. (2021). Social entrepreneurship and nonprofit management: negotiating institutional complexity. In Social Entrepreneurship (pp. 53-76). Emerald Publishing Limited.
Rajagopal, N. K., Qureshi, N. I., Durga, S., Ramirez Asis, E. H., Huerta Soto, R. M., Gupta, S. K., & Deepak, S. (2022). Future of business culture: an artificial intelligence-driven digital framework for the organization decision-making process. Complexity, 2022, 1-14.
Santos, R. S., & Qin, L. (2019). Risk capital and emerging technologies: Innovation and investment patterns based on artificial intelligence patent data analysis. Journal of Risk and Financial Management, 12(4), 189.
Satalkina, L., & Steiner, G. (2020). Digital entrepreneurship and its role in innovation systems: A systematic literature review as a basis for future research avenues for sustainable transitions. Sustainability, 12(7), 2764.
Saunila, M. (2020). Innovation capability in SMEs: A systematic review of the literature. Journal of Innovation & knowledge, 5(4), 260-265.
Sendawula, K., Kimuli, S. N. L., Turyakira, P., & Kibanja, G. (2022). Social media perceptions, readiness and usage in fostering sustainable growth of micro and small enterprises in Uganda. African Journal of Economic and Management Studies, 13(4), 598-613.
Shi, X., Zhang, Y., Wu, Y., & Wu, H. (2023). Political turnover and firm innovation in China: The moderating role of innovation and entrepreneurship environment. Journal of Asian Economics, 88, 101651.
Shoma, C. D. (2019). Gender is a human rights issue: The case of women’s entrepreneurship development in the Small and Medium Enterprise sector of Bangladesh. Journal of International Women's Studies, 20(7), 13-34.
Tambunan, T. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9(1), 18.
Tibaingana, A. (2020). Anecdotal evidence of the role of incubation in the growth of business start-ups in Uganda. International Business Research, 13(1), 64-78.
Tryphone, K., & Mkenda, B. K. (2023). Determinants and constraints of women’s sole-owned tourism micro, small and medium enterprises (MSMEs) in Tanzania. Development Southern Africa, 40(2), 329-349.
Tutuba, N. B., & Tundui, H. P. (2022). Entrepreneurship and Industrialization for Rural Development: Business Incubation Approach. International Journal of Economics, Business and Management Research, 6(01), 08-25.
UBOS (Uganda Bureau of Statistics (2021)
Wanniarachchi, T., Dissanayake, D. G. K., & Downs, C. (2022). Community-based family enterprise and sustainable development in rural Sri Lanka. Community, Work & Family, 1-19.
Yew, L. K. (2023). From China to fostering rooting innovation in Nanyang: three generations of Malaysian Chinese family businesses in food manufacturing. Innovation: The European Journal of Social Science Research, 1-19.
Copyright (c) 2024 Manasseh Tumuhimbise, Benjamin Musiita, Asaph Kaburura Katarangi, Geoffrey Kahangane, Atwine Daniel Wanito, Sheila Akampwera
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of a revised paper in the light of suggestions of the reviewers, editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
