Measuring what matters: Building an impact framework for a virtual university incubator

Entrepreneurship support in higher education is evolving rapidly. As universities expand their role in fostering innovation, many are increasingly turning to incubators and accelerators to support students, alumni, and staff in developing ideas, building ventures, and strengthening entrepreneurial skills. Yet as incubators diversify, spanning physical hubs, hybrid models, and fully virtual environments, a persistent challenge remains: how do we measure their impact effectively?

This question becomes especially urgent for institutions offering distance or flexible learning, where incubator activity is distributed, digital, and largely self-directed. How can universities meaningfully evaluate learning, entrepreneurial confidence, community building, and long-term outcomes in a virtual space? The project’s insights offer important guidance not only for one institution, but for the wider higher education sector as it grapples with how to evaluate entrepreneurial learning in a world increasingly shaped by digital technology.

Why virtual incubators matter now

Traditionally, business incubators are physical spaces where early-stage entrepreneurs access mentorship, training, and networks. But virtual incubators have emerged as an inclusive alternative, allowing students and founders to participate regardless of geography, work commitments, or caring responsibilities.

For universities with large part-time or international cohorts, virtual incubators create new pathways for skill development, innovation, and employability. They can also scale engagement far more efficiently than traditional models. However, evaluating impact in such environments is not straightforward. Participation takes place online, networking is mediated by technology, and outcomes often unfold long after the programme ends.

What we learned from global incubators

The project conducted an in-depth comparative analysis of seven incubators and accelerators from different regions and sectors. Several key themes emerged:

1. Theory of change is the global standard

Most incubators use a Theory of Change or similar logic model to map how inputs (training, mentorship, networks) lead to outcomes (enterprise creation, confidence, skills) and long-term impact (job creation, societal value, economic growth). This structured, visual approach helps organisations clarify what they aim to achieve and how progress will be measured.

2. Mixed-methods evaluation is essential

Impact is rarely captured by numbers alone. Incubators increasingly combine:

• Quantitative indicators, start-ups launched, funding raised, programme completion, participation rates.
• Qualitative insights, reflective journals, mentor feedback, founder well-being, peer collaboration, stories of change.

This blended approach recognises that entrepreneurial learning is deeply personal - not merely financial.

3. Attribution is a universal challenge

Even highly successful incubators struggle to prove causality. Outcomes depend on market forces, personal circumstances, and timing. Tracking long-term change is resource-intensive, particularly once participants leave the programme. As a result, incubators must strike a balance between realistic attribution and honest reflection.

4. Virtual incubators offer new opportunities - and risks

Virtual models revealed unique strengths and challenges. Strengths include inclusivity, access, scalability and flexibility, while the challenges are measuring networking effectiveness, understanding peer learning, reliance on self-reported data and assessing sense of community. These insights underscore why a tailored evaluation approach is vital for digital incubators.

Designing a framework for a virtual university incubator

Combining global insights with consultations involving 5 academics and 7 enterprise specialists, the project developed a comprehensive impact framework tailored to a virtual university setting.

The framework is built around four pillars:

1. Entrepreneurial skills and mindset

Rather than focusing solely on start-up creation, the framework emphasises the development of transferable skills - including creative problem-solving, opportunity recognition, resilience, and leadership. These capabilities matter for students who may never pursue business ownership but will benefit from these skills in any career path.

2. Learning and reflective development

Virtual incubators can powerfully support reflective learning. The framework recommends integrating:

• digital journals,
• mentor reflections,
• storytelling tools, and
• peer-to-peer feedback.

These qualitative indicators help capture personal growth, confidence, and critical thinking -outcomes often overlooked in traditional evaluation.

3. Networks, community, and engagement

Because digital incubators rely heavily on virtual interaction, metrics should address:

• participation in online events,
• engagement with mentors,
• peer collaboration,
• network expansion on digital platforms.

These measures help illuminate the hidden social fabric behind entrepreneurial success.

4. Venture and career outcomes

The framework balances entrepreneurial outputs with broader employability indicators. Measures include venture launches, project pilots, funding raised, but also career transitions, innovation projects within organisations, or the adoption of entrepreneurial approaches in non-profit or public sector roles.

Towards a new era of impact measurement

As virtual models become central to the future of entrepreneurship education, universities must rethink how they evaluate success. This project demonstrates that effective impact measurement requires a blended, flexible, and context-sensitive approach - one that acknowledges both the measurable and the deeply human dimensions of entrepreneurial learning. By capturing not only economic outcomes but also personal growth, confidence, inclusion, and innovation capability, higher education can ensure that virtual incubators deliver meaningful and lasting value.

Declaration on Generative AI 

Please note, ChatGPT has been used as a support tool to enhance the writing and language quality of this blog article, originally created December 2025.