Capacity, Funding and Knowledge gaps: Ecosystem Challenges to SME Ideation -Insights from DUT’s Centre for Social Entrepreneurship Rapid Incubator

This study examines the challenges within the ecosystem that impact the participation of small and medium-sized enterprises (SMEs) in ideation programs at the Durban University of Technology’s Centre for Social Entrepreneurship Rapid Incubator. Utilizing the Resource-Based View (RBV) framework, the research assesses how gaps in capacity, funding, and knowledge may limit SMEs' ability to engage effectively in ideation processes. Employing a quantitative methodology, survey data were collected from 52 student entrepreneurs and analysed using SPSS. Reliability testing confirmed the instrument’s validity (Cronbach’s alpha = 0.808; KMO = 0.741). The results indicate that, although SMEs recognize the value of ideation programs, participation is often impeded by financial constraints, limited awareness, time limitations, and geographic challenges. Additionally, respondents identified systemic obstacles such as limited mentorship opportunities, insufficient follow-up support, regulatory complexities, and fragmented networks. These findings highlight the interconnected nature of tangible and intangible resources—namely capacity, finance, and knowledge—and their collective influence on the ability of SMEs to convert ideas into sustainable businesses. The study underscores the need for comprehensive ecosystem strategies, including blended financing solutions, structured mentoring, targeted knowledge management, and enhanced post-program support to facilitate long-term entrepreneurial success.