Business Incubation and SMME Growth in a Township Economy: Evidence from KwaMashu, South Africa

Small, Micro and Medium Enterprises (SMMEs) are widely promoted as drivers of employment and inclusive economic growth in the Global South. In South Africa, however, persistently high failure rates, particularly in township economies, raise questions about the effectiveness of entrepreneurship support interventions. This study examines the relationship between business incubators and SMME growth in KwaMashu Township, KwaZulu-Natal. A qualitative single-case design was employed, drawing on twenty-one semi-structured interviews with SMME owners and business support practitioners, complemented by a literature review. Analysis was guided by an integrated framework combining Resource-Based Theory, Human Capital Theory, and Institutional Theory. Findings indicate that incubators function as conditional development mechanisms rather than direct drivers of growth. While incubation enhances access to resources, skills, mentorship, and networks, growth outcomes depend on entrepreneurial absorptive capacity, ecosystem alignment, and institutional conditions. The study advances a context-sensitive explanation of SMME growth in structurally constrained township economies.