Embedding SMEs in supply chains: Key considerations for business incubators

Abstract

Orientation: To help small and medium-sized enterprises (SMEs) overcome challenges that often threaten their survival, many governments have supported the establishment of business incubators. Embedding SMEs into supply chains is widely regarded as an effective strategy to enhance their survival and long-term sustainability.
Research purpose: This study examined the key considerations for business incubators in embedding SMEs into supply chains in Botswana.
Motivation for the study: Despite government support for SMEs through business incubators, the high failure rate of SMEs during their first year persists and remains a significant concern.
Research design, approach and method: The study adopted a qualitative, exploratory research approach. Primary data were collected through semi-structured interviews with 30 participants, including 15 incubator managers, 5 supply chain experts and 10 SME owners and managers. The data were analysed using thematic analysis with the assistance of ATLAS.ti software.
Main findings: The study found that embedding SMEs into supply chains requires a strategic alignment of business incubators. This includes developing SMEs’ capabilities in supplier relationship management, creating a post-incubation plan and prioritising the development of supply chain management knowledge for SMEs.
Practical/managerial implications: Incubator managers should design programmes that focus on developing SMEs’ capabilities to network effectively with suppliers, customers and other stakeholders, enabling them to survive and thrive beyond the incubation phase.
Contribution/value-add: The study extends the application of social network theory to the context of business incubators and supply chains. It also provides policymakers and incubator managers with key considerations that can guide the effective embedding of SMEs into supply chains.