Structural Equation Models to Determine the Relationship Between Startup Incubation Stages and the Graduation Rate of Incubators in Spain

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Abstract
Business incubators contribute to the growth of a country, and it is of great interest to deepen knowledge of the impact of incubation phases on the results of incubators to evaluate the effectiveness of developed incubation programs. The objective of this research was to propose a model that quantitatively related different incubation phases to the graduation rate of business incubators in Spain. A sample of 88 incubators was obtained. The survey included 42 items identified in different phases (spreading entrepreneurship, 9 items; pre-incubation, 9 items; basic incubation, 9 items; advanced incubation, 6 items; and graduation, 9 items) and four hypotheses relating to the existence of a positive influence from the startup incubation phases on the incubators results. These were validated by using a structural equation model (SEM) with five latent variables. Three of the four proposed hypotheses that linked startup pre-incubation (H2), basic incubation (H3), and advanced incubation (H4) with graduation rates in Spanish incubators were accepted. These startup incubation stages showed a positive influence on the startup graduation rate. The advanced incubation stage had a very strong relationship with the graduation rate (β = 0.543). Furthermore, a strong indirect effect between business incubation and the graduation rate, explaining 71% of the success of the incubators, was found. Proposals for improvement in each incubation phase to enhance the results of the business incubators are provided. Furthermore, future challenges that should be incorporated into the development of incubator programs, such as the social focus, the implementation of a training and monitoring model, an increase in network businesses, the internationalization of incubators with a globalized approach, the sustainability of the startup’s approach, and the transfer focus, are raised. Given the high variability of Spanish incubators and the wide sampling range, the model could be extended to other contexts with similar behavior within the sample range.

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