| (Ilustrative Only) Johan starts his potato chip business in Escanaba because he loves the entrepreneurial environment on Ludington. He plans on exporting regionally and internationally. |
This perspective is particularly important when considering economic transformation through business clusters and anchor institutions. Clusters create environments where businesses, entrepreneurs, and supporting organizations interact through countless formal and informal exchanges. These interactions foster innovation, reduce barriers to entry, and create conditions that encourage investment. When investors perceive a business environment as stable, collaborative, and supportive, perceived risk often declines, making investment more attractive and helping stimulate economic growth.
Anchor businesses play an important role in this process by creating demand for supporting enterprises and services. At the same time, entrepreneurial activity can generate entirely new businesses that strengthen and diversify the local economy. In this way, businesses within a cluster support one another, creating a network of mutually reinforcing relationships that contribute to long-term economic development.
Entrepreneurs frequently benefit from incubator environments that provide access to resources, mentorship, networking opportunities, and financing. An incubator, however, is not limited to a single building or program. A downtown district, commercial corridor, or designated development area can be intentionally structured to function as an entrepreneurial incubator. Communities can encourage this development through grants, improved access to financing, coordinated marketing efforts, and policies designed to attract individuals interested in starting and growing businesses.
When developed strategically, a business cluster should include a strong entrepreneurial component that encourages collaboration, innovation, and business formation. Such an environment can help attract new residents, revitalize commercial districts, and create a culture where businesses work together to achieve shared economic goals. The key lesson is that entrepreneurs thrive within networks and communities, and successful economic development strategies recognize and strengthen these connections.
Business-Incubation as a Catalyst for Start-Up Success in Emerging Markets: Entrepreneurial Bricolage versus Dynamic Capabilities
• The study examines how business incubators support start-ups in emerging markets where entrepreneurs often face significant resource constraints.
• The researchers compare two approaches to overcoming resource limitations: entrepreneurial bricolage (making do with available resources) and the development of dynamic capabilities (building adaptable organizational skills for long-term growth).
• Using data from 403 start-ups, the study investigates how incubator support influences the relationship between these approaches and venture performance.
• Findings indicate that business incubators significantly strengthen the positive impact of dynamic capabilities on start-up performance.
• While entrepreneurial bricolage can help firms survive in the short term, incubators are more effective at helping start-ups develop capabilities that support long-term adaptation, growth, and competitiveness.
• The results suggest that incubators play a critical role in moving entrepreneurs beyond reactive problem-solving toward strategic capability development.
• The study offers practical implications for policymakers, incubator managers, and entrepreneurs seeking to foster sustainable start-up growth in emerging-market environments.
Yoruk, E., Paramba, J. N., Jones, P., & Salamzadeh, A. (2026). Business-incubation as a catalyst for start-up success in emerging markets: Entrepreneurial bricolage versus dynamic capabilities. Journal of Small Business Management. Advance online publication. https://doi.org/10.1080/00472778.2026.2645919
