Determination of Critical Factors for Success in Business Incubators and Startups in East Java

Abstract

The reference to the success factors of incubators and startups in running their business so far has been ambiguous. The purpose of this study is to analyze the critical factors that can affect the success of incubators and startups. The quantitative research method describes the research results. The study locus is in East Java Province, Indonesia with primary data from respondents in five regions: Banyuwangi, Jember, Madiun, Malang, and Surabaya. The number of respondents was 41 from incubators and 59 from startups with identification of domicile, type of business, and business turnover. Data was collected using surveys and interviews with 100 respondents. The analysis in this study uses eleven factors that are assumed to be factors of business success that have been tested with Kaiser Meyer Olkin Measure (KMO), Measure of Sampling Adequacy (MSA), Bartlett’s test, and Cronbach Alpha. The critical point used for the KMO value is between 0.5 and 1, the MSA test critical point is 0.5, Bartlett’s test is less than the significance level (α = 0.05), and α cronbach ≥ 0.60. The analyzed factors are as follows: synergy products; processes; innovation management; communication; culture; experience; information technology; innovation skills; functional skills; and implementation skills. As a result, incubators and startups agree on eleven critical factors to building their business success, but there are differences in the priority scale between incubators and startups on these eleven factors.