Abstract

Startups face several challenges in their growth and sustainability due to limited access to financial resources, inadequate infrastructure, and the lack of strategic expertise. To overcome these challenges, incubators such as AICs have been emerged as a critical support system in fostering entrepreneurship and innovation ecosystems in India. The efficacy of incubators, efficacy of incubatees, and startups are the critical factors that have been assessed by this study in relation to the development of entrepreneurship and innovation. The study uses a sample of 160 participants, which include startup founders and stakeholders, to analyze these relationships through regression analysis. The results indicate that infrastructure is the most pivotal factor of incubators that improves startup performance. Besides, entrepreneurial selfefficacy is characterized by confident and adaptable founders who motivate innovation and strategic decision-making. Startups supported through AICs contribute significantly to broader objectives such as technological advancement, generation of employment, and diversified markets. This study provides valuable insights to policymakers and development agencies concerning the need to strengthen infrastructure, entrepreneurial training, and mentorship programs. By improving the critical challenges facing startups, promoting innovation, and strengthening the entrepreneurial ecosystem, such findings contribute to sustainable and dynamic entrepreneurial ecosystems that drive long-term economic growth.