Fostering innovation and entrepreneurship in Small and Medium Enterprises (SMEs) through business incubators in the Arab world

• Main Author: Elmansori, E.
• Published: Nottingham Trent University 2014
• Subjects: 658
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.635143

The Small and Medium Enterprises (SMEs) contribution to innovation and economic growth is part of the economic system, and in the light of this, SMEs policies are reviewed by countries throughout the world. In the Arab countries, which are in transition such as in particular, Egypt, Tunisia, Syria, Yemen and Libya, the SME policy rationale is strikingly consistent in its coherence and consideration of other social and economic issues. SMEs provide employment opportunities for the elderly, youth and women; the creation of new lifestyles and support the development of new forms of work organisation; new working arrangements, fostering innovation and entrepreneurship. Business incubation facilitates the development and growth of start-up companies by providing entrepreneurs with resources and services. Incubator management usually develops these services which are offered by its wide network of contacts. Therefore, the aim of this research to contribute to general knowledge about the economic growth and development impacts of business incubators, thereby assisting governments and policymakers in establishing environments that would facilitate entrepreneurship and national development. To meet this aim, both qualitative and quantitative research approaches were used. This exploratory research has used snowball sampling method, 91 responses were obtained out of the 400 questionnaires distributed to SMEs in Libya, leading to a response rate of 22.75%. In addition, 5 incubation units in Jordan and 4 in the United Arab Emirates were examined using questionnaires. Finally, interviews with 12 of Arab experts in this field were also conducted to understand how to establish and implement business incubation programmes. The results of this research show that businesses that have been through an incubator programme are far more likely to succeed in the long term. The research concluded by providing governments with guidelines for using incubators to foster technology transfer and commercialisation, which contributes to entrepreneurship and economic development in developing countries and other Arab countries, with particular consideration in Libya.