Entrepreneurship programs are widely recognized as a key mechanism for supporting innovation, job creation, and SME development. However, despite increasing investment in incubation and entrepreneurial education, startup failure rates remain persistently high.
Globally, failure rates are estimated at 80–90%, with similar patterns observed in emerging markets (Giardino et al., 2023). In South Africa specifically, studies indicate that up to 90% of new businesses fail within the first two years (Lose & Tengeh, 2015; Schutte & Barbeau, 2022).
This raises an important question:
👉 Why do entrepreneurship programs not translate into successful venture creation?
A key issue lies in the structure of program delivery. Many programs are designed around events and knowledge transfer, rather than structured venture development processes.
Research shows that effective incubation depends on:
- access to networks
- strong program management
- experienced facilitators
- coordinated stakeholder engagement
(Schutte & Barbeau, 2022).
Without these elements, programs struggle to support founders in navigating the uncertainty of early-stage venture development.
References
Lose, T., & Tengeh, R. K. (2015). Sustainability of business incubators in South Africa.
Schutte, F., & Barbeau, N. (2022). The influence of business incubators on post-incubation success.
Giardino, C. et al. (2023). Early-stage startup failure research.
