This paper aims to contribute to the business incubation literature, focusing on the questions of “how”, “why” and “in what context” business incubators operate. These questions are discussed based on interviews conducted in Dar es-Salaam, Tanzania, in 2013. The conclusions show that the questions are connected and that there are a variety of reasons to “why” people engage in business incubation. If the whole process is not understood properly there is a risk that the purpose of the business incubator will not be achieved, implying that business incubation may not be the preferred support structure for entrepreneurs in Dar es-Salaam