Assessing the role of business incubation on the performance of agribusinesses in Kampala city

Abstract

This research explores the role of business incubation on the performance of agribusinesses in Kampala city, Uganda. Despite the growing interest in supporting agribusinesses through incubation, there is limited evidence on their effectiveness, particularly in emerging markets like Kampala city. Through a mixed-methods approach, including surveys and interviews, data was collected from 70 agribusinesses at various stages of incubation. The findings highlight the demographic characteristics of incubatees, business profiles, contributions of incubation, and challenges faced by agribusinesses. The results indicate that business incubation plays a crucial role in fostering growth, innovation, and competitiveness within the agricultural sector. While agribusinesses under incubation experience positive outcomes, challenges such as limited access to funding, market competition, and high operational costs persist. The study concludes with recommendations for enhancing the effectiveness of business incubation programs such as; incubators offering training and mentorship on market analysis, product positioning, and marketing strategies to help businesses thrive in competitive environments and suggestions for future research such as; comparative studies between agribusinesses in incubation programs and those operating independently could help assess the added value of business incubation. These findings contribute to informing policymakers, stakeholders, and incubator managers on designing and implementing effective support programs for agribusinesses in Kampala and beyond.