Assessment of Business Incubation Centers Development in Ethiopia

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Date

2016-01

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Addis Ababa University

Abstract

The objective of this research is to assess the status of Business Incubation centers development in Ethiopia. This research covered 15 business incubation centers found in five regions of Ethiopia i.e. Addis Ababa, Oromia, Tigray, Amhara and SNNPR. Due to newness of the concept and the absence of complete database on the BICs in Ethiopia, non exhaustive list was developed by the researcher through personal research. The list was taken as both the target population and a sample for the study. The representativeness of the sample per owners category is ensured. The results of the study revealed that Business Incubation Center development in Ethiopia is at the infancy stage (life time less than 2 years for most of them) though the first centers established 2008 and 2009. There are various constraints that need additional effort and support from different actors for the BICs to develop and grow at acceptable rate. Lack of experience with in the BICs, finance, working space, absence of policies and guidelines, incentive programs etc... are among the major challenges the centers facing.. The results found suggest that, BICs are important to improve growth and development of the country if managed properly. The government need to take the leading role in placing operational rules and regulation of the BICs and create a legal framework they could register and function independently.

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Business Incubation Centers Development

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