Entrepreneurial marketing as a tool used by business incubators to effectively support SMEs in South Africa

Abstract

The purpose of this research study was to ascertain how business incubators can use entrepreneurial marketing to effectively support small and medium enterprises (SMEs) in South Africa. A further purpose was to determine the challenges SMEs face, the challenges faced by Business Incubators (BIs) in supporting SMEs and to ascertain the role that entrepreneurial marketing (EM) can play in mitigating the challenges that SMEs face. The study utilised the quantitative research approach with a questionnaire serving as the data collection tool. In addition, opened-ended questions were incorporated to gain qualitative insights. The population size was 57 and sample size was 50. Respondents for the research were recruited via convenience sampling. The data was analysed using Statistical Package for the Social Sciences (SPPS) version 27 and the data was presented in pie charts and tables. This study revealed that business incubators use entrepreneurial marketing to effectively assist SMEs. According to the findings, both business incubators and SMEs encounter difficulties, with the most frequent being access to funding and sponsorship. In the effort to preserve and sustain SMEs, EM has emerged as a valuable tool. In South Africa, the concept of business incubation is supported by Small Enterprise Development Agency (SEDA) through Support and Technology Transfer Funds (STP) and the Department of Trade and Industry through the Incubation Support Programme (ISP). The Small Enterprise Finance Agency (SEFA) focuses attention on sustaining and developing SMEs. These interventions allow the government to encourage incubation and promote entrepreneurship. It is suggested that business incubators form partnerships with sponsors to obtain money in order to sustain themselves and their clients. Because the geographical areas in which business incubators are located are not easily accessible to all those in need, the researcher recommends that business incubators move closer to their clients physically or digitally. SME owners are encouraged to enrol in incubation programs for advice and mentoring, particularly during the early phases, in order to avoid failure. The government is urged to foster entrepreneurship and sustain business growth via supporting policies. This research focused on SEDA-managed business incubators, which is one of the study's limitations. In addition, the Covid-19 pandemic and its associated challenges limited participation. This research makes a significant contribution to the growing topic of business incubation, particularly in emerging economies. Additionally, it contributes to the current literature, focusing on entrepreneurial marketing and its aspects particularly in the context of South Africa. In practice, this study's contribution is that business incubator office holders and employees should get ongoing training to ensure that the sustainability of business incubators stands out.