The purpose of this paper is to evaluate effectiveness of business incubator process models employed in government-funded incubators operating in the emerging markets countries, using South Africa as an example. This research paper aims to add to literature on the incubator process evaluation stream of studies. Furthermore, it proposes a process effectiveness model based on the integration of organizational diagnosis theory on organizational effectiveness as well the real options theory of the incubator process. This study employs a qualitative study method based on interviews with 10 business incubator managers of the only government sanctioned Small Enterprise Development Agency in South Africa. Data was collected and analysed qualitatively. The researcher proposes an incubator process effectiveness evaluation framework with dimensions that are suitable for an emerging market context.</p / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted