Assessing The Impact of Business Incubation To Startup Performances In Indonesia

Abstract

Startup arguably becomes one of the key drivers in the country economy. The growth of startup depends on how well the ecosystem provides the support needed by the startup. Like other young companies, startups have higher failure rates due to lack of resources, networks, reputations, credibility, innovation, or marketing knowledge for developing and selling the products. To survive, most startups collaborate and join business incubation to sustain and improve their performance. Several factors have been identified on influencing startup performance growth in business incubation. However, the impact of business incubation to startup performance has yet to be validated quantitatively by including all possible factors known from previous research. Thus, the research focuses on measuring the impact of business incubation to startup performance and whether business incubation is beneficial to startup performance based on quantitative approach. The performance measurement criteria was selected based on previous business incubation research and adjusted based on Indonesia startup ecosystem. The academic and practical gap on business incubation and its implications for startup performance are also addressed by doing survey research to startups community in Indonesia. The expected result will give an insight of business incubation impact to startup performance, and which factor most influenced startup performance in business incubation. Moreover, advice to help incubators improve and increase their impact on startup performance will also be presented in this research.