Analysis of Startups and the Role of Incubators: the Case of Selected Firms in Addis Ababa
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Date
2024-02-20
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AAU
Abstract
This paper is intended to analyze the startup ecosystem in Addis Ababa and the role incubators
play. It started with determining factors that affect the success of startups, measurement of success
for the startups, and the moderating role of incubators based on literary articles by different
scholars in the field. A model incubating firm, iceaddis is chosen to collect data on incubated
startups. 159 responses are collected from 90 incubated startups in different sectors. Explanatory
and Descriptive research designs are applied and a Five-point Likert Scale questionnaire is used
to record responses. The questionnaire mainly contains questions related to factors affecting the
success of startups which is measured by a) access to finance b) business model c) marketing
strategy d) quality of product or service provision e) management skills and f) government policy,
the next set of questions are related to the measurement of success for the startups, finally the role
of incubators is tried to be captured with various questions. The data gathered is then entered into
SPSS for analysis. Descriptive and Inferential statistics, classic linear regression model, and
moderated regression are used to do further analysis. The final result suggested that all the success
factors and moderator has a positive relationship with the success of startups. However, a
significant relationship can not be proven between the two variables; quality of product or service
provision and government policy with the success of startups. On the other hand, the moderating
role of incubator is proved with the significant increment of explanatory power of the factors to
the success of startups.