INTERNATIONAL JOURNAL OF ADVANCE RESEARCH
IN MULTIDISCIPLINARY

This empirical study evaluates the performance of Business Incubation Centers (BICs) using Input, Process, and Output Key Performance Indicators (KPIs) and examine the impact of performance of Business Incubation Centers on the startups in Karnataka for the period 2015-2025 covering a sample of 151 Business Incubation Centers. Descriptive statistics and multiple regression analysis were employed, with the total number of startups as the dependent variable and selected Input and Process-KPIs as independent variables. Regression assumptions including multicollinearity, normality, homoscedasticity, and autocorrelation were tested to ensure model validity. The findings indicate moderate gaps in input factors such as staffing, incubation capacity, and funding access, though select districts perform relatively better. Process KPIs show stronger performance, with most incubators meeting ideal standards in governance, strategy, mentoring, and compliance, despite some variation in leadership and responsiveness. Output KPIs demonstrate robust results across the state, including high revenue generation, employment creation, commercialization, and patent activity. Overall, the study concludes that Karnataka’s BICs effectively translate resources and processes into tangible startup outcomes, contributing positively to entrepreneurship and economic development. The regression results reveals that the model explaining the number of startups is statistically significant and highly robust (R² = 0.998; p = 0.000). Diversity of Funding Resources has a positive and significant impact on startup numbers, making it the key driver of startup growth. Incubation Services provided shows a significant negative effect, while all other variables are statistically insignificant. Diagnostic tests confirm that the model satisfies major regression assumptions. Overall, funding diversity emerges as the most influential factor in determining the number of startups in Karnataka.