The development of a framework for technology business incubation for the sustainable growth of small businesses in KwaZulu-Natal

Abstract

Technology business incubators (TBIs) are essential for the growth of technology-focused entrepreneurs by providing support services, access to experts, and infrastructure that fosters innovation. This aligns with Resource-Based Theory, emphasising that a business's competitive advantage comes from accessing unique resources. Technology incubation is a selective intervention focusing on technology-focused or technology-enabled small businesses. This study revealed that the technology-focused small businesses contribute to technology development, innovation and diversification of products and services. It also revealed that TBIs play a critical role in facilitating the growth and development of technology-focused entrepreneurs by offering essential support services, access to specialised expertise, and necessary infrastructure that fosters innovation and enhances entrepreneurial potential. The economic profile of technology-focused small businesses in KwaZulu-Natal (KZN) revealed its potential to contribute positively to developing high-technology or technology-enabled enterprises. Despite government support for SMMEs, as outlined in the National Development Plan 2030, high failure rates among these businesses persist. Often, this stems from their inability to secure essential resources, hindering their technological contribution and innovation. Utilising qualitative research methods,13 of the 17 heads of TBIs in the province, classified as managers, CEOs or directors, were interviewed to explore their experiences of this phenomenon. The study adopted the epistemological and ontological assumptions of interpretivism and subjectivism. Thematic analysis was followed in the analysis and interpretation of data. The findings contributed to a tailored framework for technology business incubation in KZN, outlining strategic approaches to improve practices and presenting a comprehensive overview of TBI services and key stakeholders needed to foster a thriving ecosystem for technology-driven small enterprises, thus achieving the primary aim of this study. This study also investigated the landscape of TBIs in KZN, South Africa, underscoring their significant potential to stimulate economic growth, create employment opportunities, and address challenges related to poverty and inequality by promoting technology-driven small enterprises. The study's conclusions revealed the importance of technology business incubation as an essential intervention for the development and sustainability of technology-focused small businesses in KZN. The study's findings also highlighted the need to explore this phenomenon further from different perspectives, including those of the targeted beneficiaries, technology-focused small businesses and other stakeholders, and possibly replicate it in other provinces of South Africa.