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European Journal of Business and Managem ent ISSN 2222-1905 (Paper) ISSN 2222-2839 (O nline) Vol 4, No.14, 2012

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Journal of Business and Managem ent ISSN 2222-1905 (Paper) ISSN 2222-2839 (O nline) Vol 4, No.14,

Beyond Incubat ors: Youth Entrepreneurship Ge neration

Hanad i Mubarak AL-Mubaraki 1* and Michael Busler 2

1. Hanadi Mubarak A L-Mubaraki, College of Engineering, Kuwait Univer sity, Kuwait

2. Michael Busler, R ichard Stockton College, USA * E-mail of the corresponding author: pro5383526@yahoo.co

m

Abstract Purpose of this paper is to explore, from business incubation program.

investigate and identify the youth entrepreneurship di mension as an outcome The identification is based on successful implemen tation of case studies.

Methodology/approach: The resear ch methodologies adopted in this research study are

study of 5 incubator organisations i n the developing countries. Findings: The findings of this study indicate the entrepreneurial spirit of business in cubation program and lead to sustain incubators. Prac tical implications: The empirical results highlight some im plications for successfully developing and implementi ng best practice of cre- ating an entrepreneurial generation to support economic development. Originality/valu e: This study makes a contribution to knowledge about the youth entrepreneurship. Keywords: Jobs creation, developin g countries, entrepreneurship, incubation program

desk-research and case

1. Introduction

The first U.S business incubator o pen in 1959 when Joseph Mancuso started the Bata via industrial, canter in Batavia, new York the business in cubation programs have emerged as successful econ omic development tool throughout the country and around t he world. Today, there are more than 75 00 incubation programs around the world; approxim ately 1400 business in- cubators operated in U.S (NBIA, 2 010), 900 business incubators operated in Europe ( Monkman, 2010), 1000

business incubators in Asia (Euro pean Commission Enterprise Directorate General, Lalkaka, 2003), and more than 21 b usiness incubators in Middle East (NBIA, 2010).

From the previous year’s expe rience, it is evident that the strategic outcomes from b usiness incubation pro-

gram were economic development,

technology transfer and commercial ization (NBIA, 2006).

to explore, investigate and identify the youth entrepr eneurship dimension as

implementation of case

studies. The structure of this paper is

as follows: Section 2 provides a literature review of the business incubation

(BI) such as definitions, types of in cubators, services provided by incubators and goals o f each business incuba- tion program. In section 3, the rese arch methodology included the evidence from the li terature review and ten successful case studies to illustrate d ifferent key performance of the business incubation. I n section 4, the authors briefly discuss the finding of the st udy drawn from quantitative approaches of incubato rs. Section 5 concludes with implications of the business inc ubators from successful developing countries.

entrepreneurship, innovation, acceleration of busines s growth, job creation,

2002; Lalkaka, 1996;

The objective of this paper is

outcomes from business incubation program. The identification is based on successful

2. Related Literature Review of B usiness Incubation

Business incubation, as a driven too l for economic development, can provide a critical pl atform to connect indi- vidual interests and passions with o rganizational goals. This may also embody the concr ete and well-articulated policies and programs of firms as w ell as formalize top management's beliefs and value o f entrepreneurship, cre- ativity, and innovation. The social a nd economic outcomes may transform its environmen t-culture, structure, and

strategy into a flourishing one that c an leverage the entrepreneurial spirit, creative prowes s, and innovative skills of employees and managers (Joseph and Eshun, 2009).

The tool of the new economy will be creativity, innovation and entrepreneurship. firms that dominated the rankings o f the top 100 most innovative companies across the

tivity, innovation, and entrepreneur ship, rather than labor and capital. These firms based

trepreneurship through experiences, proven best practices and processes as well as ideas and success stories (Jo-

seph and Eshun, 2009).

There are ten strategic benefits from supporting youth entrepreneurship:

In fact, most, if not all globe compete on crea- on innovation and en-

1-

Sustain Interest in Your Inc ubator The major benefit of youth entrepreneurship programs is their ability to capture and maintain a commu- nity's interest in the incuba tor.

2-

Leverage Existing Local R esources

Initiating a youth program enabled existing local resources and focuses them on creating a new genera-

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European Journal of Business and Managem ent ISSN 2222-1905 (Paper) ISSN 2222-2839 (O nline) Vol 4, No.14, 2012

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Journal of Business and Managem ent ISSN 2222-1905 (Paper) ISSN 2222-2839 (O nline) Vol 4, No.14,

tion of entrepreneurs in th e area such as its Office of Technology Licensing an d experts in technology commercialization.

3-

Help Kids Understand the Realities of Owning a Business Most entrepreneurs are ove rly optimistic. Through its youth program organized in connection with Jun- ior Achievement and take part in the program have the opportunity to meet wi th incubator clients and ask them questions to gain valuable learning experience.

4-

Make Entrepreneurship a

Viable Career Option

An incubator can view the young people of its community as a pipeline of futur e clients, but talent and dreams alone do not make successful entrepreneurs. One way to ensure that the pipeline stays full is to

help young people put a s tructure to their dreams. In addition, entrepreneurs ne ed facilities to test their

ideas a real benefit for a

young person to know that in their community, there 's a business incubator

that is about helping peop le start businesses that have adult businesses in it that can serve as role mod- els and possible.

5-

Enrich School Curriculum The fundamental concepts of entrepreneurship through curriculum from the Na tional Council for Eco- nomic Education, its You ng Entrepreneurial Scholars (YES) program- in whic h they use the National

Foundation for Teaching

Entrepreneurship curriculum is geared toward high sc hool students is offered

during school hours.

6-

Energize Your Adult Incuba tor Clients The most successful adult incubation programs have found that supporting yout h programs benefits the centre’s overall environm ent as well as the adult incubation process. Having youth entrepreneurship

here adds a lot of energy a nd excitement.

 

7-

Mould Responsible Entrep reneurs The youth entrepreneurshi p programs can help teach young people how to be responsible adults and conscientious business ow ners.

8-

Build more Partnerships

Supporting a youth progra m is also a good opportunity to build partnerships. T he businesses that part-

ner with the incubator can

serve as role models to young people by speaking

at camps, providing in-

ternships, and participatin g in other activities.

9-

Teach Skills that have Life- long Benefits

The skills young people c an learn through entrepreneurship education and pro gramming will benefit them no matter where the y go in life. If they choose to start a business, they w ill have the preliminary skills to do so. If they do not choose to start a business, they will make better e mployees because they will understand the funda mentals of how a business operates. 10- Bring more Exposure to Yo ur Incubator An incubator's role in the c ommunity is to connect people who are looking to be come entrepreneurs and people who provide servic es to entrepreneurs, the youth entrepreneurship can b enefit incubators from a marketing and branding st andpoint.

3. Research Methodology

The research methodology that has been used in this research study is compromised of de sk-research, interviews and case study of 5 incubator organi sations in the developing countries.

across the developing

countries. As a result of the intervie ws, it was identified that currently, there are 21 incuba tors across Middle East,

900 in Europe, 1000 in Asia, and 1 400 in Latin America (NBIA, 2010; Al-Mubaraki and

has been noted that in developing

uting to the economy, promote tech nology transfer, and create new enterprises and impact s on job creation. Table

1 shows a summary of case studies financial information.

Interviews were conducted w ith senior executives of 5 incubators organizations

Busler, 2011). Also, it

countries, the business incubators could be particula rly valuable in contrib-

included the country name, objectives, services, incub ator start date, type and

4. Findings and Discussion

From the current literature, it is evi dent (see section 2 above) the strategic benefits from supporting youth entre-

preneurship for accelerating jobs c reation and Entrepreneurship climate. The World Ba nk estimations indicate that there will be three billion peop le in the world under 25 by the year 2015. While the youth population grew by 13.2 percent between 1995 and 2005, employment among young people grew by on ly 3.8 percent to reach

548 million. Furthermore, statistics

East and North Africa

also indicate substantial differences between regio ns and cultures. Youth

entrepreneurship is lowest in East A sia with below 10 percent, and highest in the Middle with 25 percent (infoDev., 2011).

receive support and guidance to market their busines s concepts, work effec-

The entrepreneurs companies

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European Journal of Business and Managem ent ISSN 2222-1905 (Paper) ISSN 2222-2839 (O nline) Vol 4, No.14, 2012

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Journal of Business and Managem ent ISSN 2222-1905 (Paper) ISSN 2222-2839 (O nline) Vol 4, No.14,

tively to reduce the failures and abi lity of free standing in the market after graduation fr om the incubation pro- gram. In addition, business incubato rs provide the transformation of entrepreneurship ide as into start up business

or viable business ventures (infoDev ., 2009).

Table 2 presents the highest pe rcentage of the number of entrepreneurship client fir ms and number of grad- uated firms 84.47%, 85% in China r espectively. This percentage reflects the high demand youth entrepreneurship inside the incubators. Finally, the to tal number of entrepreneurship client companies 2511 create the total number of entrepreneurship graduate compa nies 716; this is the positive impact of case studies wi ll be create high rate of employment.

5.... Conclusion and Reflection

Entrepreneurship can unleash the e conomic potential of young people and be a source o f new jobs and growth,

technologically-driven

economy where wealth creation is

stood not only in terms of conventi onal problem-solving techniques and improvements b ut also openness, alert- ness, and sensitivity to new and em erging opportunities. Finally, this study has clearly st ated that the incubators are supporting entrepreneurship gen eration and innovation to lead jobs creation and econ omic development with the smart generation.

directly derived from innovation (Romer, 1990). Inn ovation must be under-

while improving their economic in dependence. Entrepreneurial economy based on the

References Al-Mubaraki, H. and Busler, M.

Based on Incubaotors:

to 18 February 2011,

Gandhinagar, Gujarat, India. European Commission Enterprise

Directorate-General (2002), “Final Report Benc hmarking of Business

Incubators”, Centre for Strategy & E valuation Services. Greene, P. and Butler, J. (1996), “T he minority community as a natural business incubato r”, Journal of Business Research, 36: 51-58.

Greenwood, J. (1992), “Economic

incubation (pp. 3-6). Athens, OH: N ational Business Incubator Association. InfoDev (2011), “Middle East incub ators”, [online] available: http://www.idisc.net/en/R egion.5.html.

InfoDev (2009), “Mixed-use Incuba tor Handbook: A Start-up Guide for Incubator Devel opers”, JBV 2002, Les- son 17: Business incubators, [online ] available: www.jbv.com/lessons/lesson17 [5 Janua ry 5, 2012].

(2009), “Business Incubation as strategy”, B usiness Strategy Se-

ries, 10(3), p.156-166. ABI/INFOR M Global (Document ID: 1882777971).

Lalkaka, R. (2003), “Business incu bators in developing countries: Characteristics and performance”, Interna-

and Innovation Management, 3(1/2), 31-55. “Business Incubators in Economic Development: an i nitial assessment in in-

dustrializing countries”, United Nat ions Development Programme, New York, Organisati on of American States, Washington DC, United Nations Ind ustrial Development Organisation, Vienna. Molnar, L., Adkins, D., Yolanda, B ., Grimes, D., Sherman, H. and Tornatzky, L. (1997 ), “Business Incubation Works”, Athens, Ohio: NBIA Public ations. Monkman, D. (2010), “Business I ncubators and Their Role in Job Creation”, Presid ent and CEO National Business Incubation Association (N BIA), Athens, Ohio, [online] available: www.nbia.org [3 January 2012]. National Business Incubation Asso ciation (NBIA), (1996), “Tenth anniversary survey o f business incubators”,

Joseph, P. and Eshun, Jr.

development 101”, In S. Hayhow (Ed.), A comprehe nsive guide to business

International Experience”, The Ni nth Biennial Conference on Entrepreneurship, 16

(2011), “Innovation, Enterpership, Job Creation,

tional Journal of Entrepreneurship Lalkaka, R. and Bishop, J. (1996),

1985-1995: A decade of growth, A thens, OH. National Business Incubation Asso ciation (NBIA), (2006), “State of the business incuba tion industry”, Athens, OH, NBIA Publications.

available:

http://www.nbia.org/resource_librar y/faq/#13 [4 January 2012]. Rice, M.P. and Matthews, J. (1995) . ‘Growing new ventures, creating new jobs: Principl es and practices of suc- cessful business incubation”, Westp ort, CT: Quorum Books. Romer, P. (1986), “Increasing Retur ns and Long-run Growth”, Journal of Political Econo my, 94, (5): 1002-1037. Smilor, R.W. and Gill, M. (1986 ), “The new business incubator: Linking talent t echnology, capital and know-how”, Lexington, MA, Lexin gton.

National Business Incuba tor Association (NBIA), (2010),

[online]

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European Journal of Business and Managem ent ISSN 2222-1905 (Paper) ISSN 2222-2839 (O nline) Vol 4, No.14, 2012

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Journal of Business and Managem ent ISSN 2222-1905 (Paper) ISSN 2222-2839 (O nline) Vol 4, No.14,

Dr. Hanadi Mubarak AL-Mubar aki is an Assistant Professor in Kuwait University. S he teaches project man- agement in civil engineering for un dergraduate and graduate courses as well as manage ment course in business

schools. She has published scientific articles in different academic journals, a book and ha s presented her research papers in many countries. Dr. AL-M ubaraki is the recipient of several international awar ds and medals for con- tribution to International Scientific Research in the WHO'S WHO IN THE WORLD 20 09, 2010, 2011 & 2012 and Deputy Director General of As ia – IBC, Life Fellowship – IBA, International Peace Prize – United Cultural

21 st century award for

Conventions - UN, IBC Illuminate d Diploma of honours of Professional Education

Achievement, International Educ ators of the year 2004, Medal 2005, DDG Medal 200 5, International Who's

Who of Professional Educators 20 03, 2004, 2005, 2006, 2007, 2012, Madison Who's

Fellowship, Marquis Who's Who, M aster Degree Honour Medal 1996 – Kuwait University

Who professionals Life from HH Sheikh Jaber

Al-Ahmed Al-Sabah, the Amir of K uwait. Dr. AL-Mubaraki serves on the Editorial Boar d of three international journals: Business, Economic Devel opment, Management and International Business Entr epreneurship.

Dr. Michael Busler is an Associat e Professor of Finance, Finance Track Coordinator a nd a Fellow at the Wil-

liam J, Hughes Center for Public P olicy at Richard Stockton College. He teaches under graduate courses in Fi- nance and Game Theory as well as Managerial Economics and Corporate Finance in the MBA Program. He has

countries. In addition,

he has worked as a Financial Analy st for Ford Motor Company and FMC Corporation an d has been an entrepre-

neur having owned several business es mostly in the Real Estate development field. Drexel University.

He earned his Doctorate at

been published in eight different ac ademic journals and has presented his research in ten

Table 1. Summary of Case Studies

         

No. of

No. of

No.

Country

Object ives

 

Services

Start

Date

Client

Firms

Graduated

Firms

 

1 China

Job creation , profita-

Business information, ad- visory services, business management, business development, training, mentoring, angel investing, share the services and office space, financial training management, overlap fi- nanciers with venture capi- tal, coaching the business, incubates program net- working and networking events, technology com- mercializing, common la- boratories and workshops

2004

2123

609

 

2 Australia

ble enterpr ises, re-

1997

358

90

 

3 Morocco

search com merciali-

2005

8

4

 

4 Indonesia

zation,

entrepre-

1995

9

11

 

5 Philippines

neurship a wareness,

2001

13

2

export reven ues, pol-

icy impact

and in-

come genera tion

 

Table 2. Summary of the countries’ Entrepreneurship firms

 
 

Country

 

Entrepreneurship firms

 

No. of Client

 

%

No. of Graduat ed

%

China

 

2123

84.47

 

609

85

Australia

 

358

14.3

 

90

12.5

Morocco

 

8

.3

 

4

.56

Indonesia

 

9

.4

 

11

1.5

Philippines

 

13

.53

 

2

.28

 

Total

25

11

100

 

716

100

 

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