Drivers of Participation in Incubation Programs and Their Influence on Sustainability of Agribusinesses in Selected Public and Private Universities in Kenya

Abstract

Youth unemployment is a major challenge in Kenya which is largely attributed to the mismatch between the education curriculum and the job market demands. With the hope of combating the problem, Universities are promoting entrepreneurship incubation to instil an entrepreneurial mindset to create student-led agribusiness ventures. This is done through University Incubation Programs (UIPs). Despite this acknowledgement, most University-Incubated Student-led Businesses (UISBs) have a high failure rate and low sustainability. To address this issue, the study sought to examine drivers of participation in incubation programs and their influence on the sustainability of agribusinesses in selected public and private universities in Kenya. Specific objectives were; to characterise student-led incubated agribusiness, to determine drivers of motivation of student entrepreneurs, and to determine the factors influencing UISBs. Data for this study was collected using a multistage sampling from 272 respondents using a semi-structured questionnaire. Objective one was analysed using descriptive statistics, Principal Component Analysis (PCA) was used for objective two while Structural Equation Model under the Partial Least Square method (PLS-SEM) was used for objective three. Results from the descriptives revealed that UISBs on average exist for only one year and five months where the majority do not survive their first year of operation. The majority of these students join UIPs to develop their businesses (40.7%) and have business management challenges which is also the major reason why many agribusinesses failed (39.7%). Furthermore, results from PCA revealed that most university students participate in UIP out of a need rather than seeing it as an opportunity, a component support with an alpha value of 0.823. These components, along with concerns about the stigma of failure, and personality, were analyzed using PLS-SEM. This analysis revealed positive and significant relationships between necessity motivation factors and personality/behavioural factors towards the sustainability of UIBs (p=0.000). On the other hand, opportunity motivation factors had no significant relationship to the sustainability of agribusinesses (p=0.831). To ensure the long-term success of UIBs, the study suggests that training programs should focus on necessity motivation factors since they significantly influence the sustainability of UIBs. In addition, policymakers should consider interventions that reduce unemployment, such as institutionalizing UIPs.