Business incubator coaching for small, medium and micro enterprises in South Africa

Abstract

Background: Economic growth and job creation are focus areas for small, medium and micro enterprises (SMMEs), and effective business coaching for their owners plays a vital role in South Africa. Unfortunately, SMMEs often fail because of a lack of proper financial understanding, insufficient managerial talents and a lack of experience in critical functional areas.
Aim: This research aimed to explore the role that business incubator coaching plays in supporting and developing SMMEs.
Setting: The research was conducted within the private and public business incubator sectors in South Africa.
Methods: A qualitative, exploratory approach was followed and purposive sampling was used to select 10 participants who were interviewed individually. Thematic analysis was then used to analyse the data through abductive analysis techniques.
Results: The research indicated that the best practices associated with business incubator coaching programmes include providing individualised guidance, setting clear coaching objectives, feedback sessions and creating avenues for socialising. Business incubator coaches can thus incorporate these practices when structuring their incubation programmes.
Conclusion: The research revealed that the best practices of business incubator coaching programmes substantially affect the success of SMMEs. The coach’s characteristics and experience are particularly important in assisting the SMME entrepreneur in reaching their coaching goals. Effective business incubator coaching can ultimately enhance SMME entrepreneurs’ business acumen and ultimately achieve sustainable success.
Contribution: This research adds to existing literature on business incubator coaching within the South African SMME context.