| Abstract |
It is widely believed incubators are not as effective as they could be. Although incubators are intended to be a tool for supporting entrepreneurship, innovation, and regional development, there is little empirical evidence that incubators have fulfilled their expected role. Entrepreneurs applying to join an incubator expect to successfully graduate within a reasonable amount of time, and publicly funded incubators are expected to enhance the creation of new start-ups that create jobs and grow the economy. Therefore, the primary goal of a business incubator is supporting entrepreneurs to create successful start-ups within a reasonable time. Ultimately, a graduated start-up leaves the incubator after becoming a sustainable firm that can stand alone and maintain its growth outside this nurturing environment. The J-curve model illustrates the journey of any start-up during its opportunity development process until maturity. The successful graduation rate is an indicator of an incubator's performance, particularly its indirect contribution to the economy. This study explores entrepreneurs' perspectives on the factors leading to higher successful graduation rates from business incubators. Incubators offer three categories of services: infrastructure, coaching, and networking. This study analyzes qualitative data from interviews with entrepreneurs expecting to join a business incubator, currently affiliated with a business incubator, and already graduated from a business incubator. Based on the J-curve model and the services offered by incubators, a new model emerged: the double J-curve. The J-curve does not reflect the challenges incubated start-ups face directly after graduation when they are exposed to new expenses that were covered by their incubators. Incubated start-ups pass through a five-phased double J-curve rather than three-phased J-curve. Each phase is defined by a start-up's milestones, its challenges, its needs, and its incubator's services. These findings can have implications on incubators' policies for accepting and evaluating start-ups. |