Value Creation of Business Incubator Functions: Economic and Social Sustainability in the COVID-19 Scenario

Abstract

Spain has encouraged support to sustain entrepreneurs in the COVID-19 pandemic. In this paper, the usefulness of the functions of business incubators regarding the social benefits derived from enhancing the sustainability of the entrepreneurial ecosystem is studied in the context of the COVID-19 scenario. Due to the lack of academic literature on the subject, an analysis based on the application of structural equation models (SEMs) has been carried out using a theoretical framework built and empirically validated using a representative sample of Spanish entrepreneurs. The results show that, according to stakeholders, the functionalities of business incubators were oriented to drive entrepreneurial initiatives to have highly positive effects on society. This research evidences that business incubators are key mechanisms to make entrepreneurship, growth and economic development more sustainable in society.