Why business incubators fail to stimulate cooperation and networking between entrepreneurs

What is it about?

Cooperation is limited between entrepreneurs in business incubation, studies have shown, and we explain how it is related to a causation logic where entrepreneurs focus on finding the means to a reach a predefined goal. An effectuation logic, on the other hand, implies that entrepreneurs focus on means at hand and how to materialize them into goals not necessarily predefined. In business incubators, entrepreneurs with an effectuation logic are few but have the highest proclivity to cooperate with other firms.

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Why is it important?

Our findings are striking since many incubators recruit entrepreneurs having a causation logic by selecting candidates with a predefined business plan. We mean that using a business plan as a major criterion for admittance puts entrepreneurs with an effectuation logic in a disadvantageous position, as they are focused on means at hand, and less focused on predefined goals. Our study indicates that entrepreneurs with an effectuation logic are underrepresented in business incubators. If so, it might have resulted in a loss of entrepreneurial talents that could otherwise have excelled and contributed with valuable resources in a business incubator context and the society at large.

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