Business Incubation Models and SME Development: A Comparative Assessment of Public and Private Incubators in Nigeria

This study comparatively assesses the business incubation models and SME development outcomes of public sector and private sector technology and enterprise incubators in Nigeria, examining how governance structures, service design, and resource availability affect the performance of enterprises supported by different incubator types. Nigeria operates a growing network of incubators managed by federal and state government agencies, universities, and private sector organisations, but the comparative effectiveness of these different models has not been systematically evaluated. The study employs a mixed-methods comparative design, surveying 120 current and graduate incubatees from four public and four private incubators located in Lagos, Abuja, Enugu, and Kano, and conducting in-depth interviews with 20 incubator managers. Survey data examine service quality ratings, business capability development, and survival and growth outcomes. Interview data explore management models, resource constraints, and performance monitoring practices. Findings indicate that private sector incubators show higher graduate business survival rates and faster revenue growth among incubatees, primarily attributable to stronger mentor quality, more rigorous incubatee selection, and better investor network access. Public sector incubators achieve broader geographic and demographic reach and are better at serving pre-commercial stage enterprises. The most effective programmes in the sample combine public sector funding mandates with private sector management and network access. Recommendations include the adoption of public-private partnership management models for government-funded incubators, using competitive management contracts. Keywords: business incubation, SME development, public-private comparison, Nigeria, startup support.