TECHNOLOGY INCUBATION PROGRAMME AND SMEs’ SURVIVAL IN NIGERIA

Author Name: Nasiru A. Umar

Volume: 01 &  Issue:

Country: Nigeria

DOI NO.: 08.2020-25662434 DOI Link: http://www.doi-ds.org/doilink/12.2020-91871673/

Affiliation:

1. Ph.D Student, Department of Economics, Bayero University, Kano, Nigeria

ABSTRACT

The study examines the effects of infrastructure supports(working space, quality control laboratory & mechanical workshop, electricity & water supply, and security) provided by Technology Incubation Centre, Kanoas well as sales growth of incubates on the incubates’ business survival (measured by profitability growth). The study used cross sectional data from the incubatees of the Technology Incubation Centre, Kano, using a structured questionnaire where a sample of 76 incubatees was drawn. Logit and Probit regression models were used. Diagnostic checks (specification test and goodness of fit test) were conducted. The empirical findings show that independent variables have positive effects on incubatees’ business profitability. However, out of the five variables tested (working space, quality control laboratory & mechanical workshop, electricity & water supply, security, and sales growth), only sales growth reveals significant effect on incubatees’ business profitability. The study recommends that quality control laboratory and mechanical workshop of the technology incubation centre should be well equipped and upgraded to the best standard and full utilization of same by incubatees should be ensured. This will assist incubatees to produce qualitative products that can compete favourably in the market thereby improving the level of their business profitability. Electricity and water supply in the Technology Incubation Centre needs to be improved for the benefits of incubates. This will assist incubatees to minimize their cost of production and make more profits.

Key words: Technology Incubation Programme, Incubatees, Infrastructure Supports