Abstract:
The coronavirus pandemics has had significant impacts on economic recession and social inequality, especially the issues of resource access for running a small business or a startup. As a result, agencies that act as intermediaries between entrepreneurs, investors, and consumers put a lot of effort into nurturing businesses for successful business growth and survival. These attempts include supporting infrastructure needed, such as intellectual resources, networks, business locations and opportunities from investors. Conducting a literature review from articles published in international journals, we found that those that have been involved in startups and have participated in all entrepreneurial activities still cannot create growth opportunities, resulting from latent factors known as proximity. This research aims to study the impact of proximity on startup growth in business incubation program through the concept of proximity in 5 dimensions: cognitive, social, geographical, organizational, and institutional proximities. We carried out a binary logistic regression method by collecting data from 68 startups that have been incubated through a business incubation program. The three main proximity dimensions that directly influence the growth of startups in respect of collaboration and venture creation dimensions are cognitive, social, and geographical proximities. This article is part of the dissertation entitled The Impact of Proximity on Startup Growth in Business Incubation."