Evaluation of a government-funded business incubation program in the fisheries sector in Indonesia

Government-funded business incubation programs have been increasingly implemented to support micro and small enterprises (MSEs) in Indonesia’s fisheries sector; however, their effectiveness is not well understood. Prior studies largely relied on administrative data and manager perspectives, giving limited attention to beneficiary experiences. This study evaluated the effectiveness of a government-funded incubation program targeting fishery processing and marketing MSEs in Indonesia from the viewpoint of incubator tenants. Using importance-performance analysis (IPA), the research examined ten essential program attributes across 47 MSEs that participated in the program between 2018 and 2022. Data were collected through structured questionnaires measuring both perceived importance and actual performance of program services. Statistical analyses including reliability tests, validity tests, and paired t-tests revealed significant gaps between importance and performance for all attributes (p < 0.05). The IPA matrix placed five attributes in the “Keep Up the Good Work” quadrant (processing technique training, good manufacturing practice/sanitation standard operating procedures training, laboratory testing support, design and packaging support, and promotion materials development), one critical attribute requiring immediate attention in the "Concentrate Here" quadrant (market expansion assistance), and four attributes in the "Low Priority" quadrant (quality certificate assistance, license and permit facilitation, business management training, and financing and investment support). The findings indicated that while the program performed well in technical and operational support, market expansion services required substantial improvement. This study contributed to the limited empirical literature on government-funded fishery incubation programs in developing countries and offered actionable recommendations aligned with stakeholder priorities.