How to Support Start-Ups in Developing a Sustainable Business Model: The Case of an European Social Impact Accelerator

Abstract

Sustainability-oriented start-ups are fundamental to developing solutions for, and to fostering, a societal transition towards a low carbon society. In this context, social impact accelerators (SIAs) are organizations specializing in accelerating the progress of sustainability-oriented start-ups. In order to design their accelerator elements (e.g., training, coaching, and funding) effectively, SIAs must be aware of the knowledge needs of start-ups to support them in developing a sustainable business model (SBM). Using a case study approach, we present one of the largest cleantech accelerator programs in Europe, the EIT Climate-KIC RIS Accelerator. Based on the program’s curriculum and manual in 2019, we analyze from the perspective of the program how cleantech start-ups could be supported in the development of their SBMs by presenting accelerator elements that are intended to support start-ups in reducing their knowledge needs by (1) providing new knowledge to start-ups (e.g., trainings, workshops, and e-learning), (2) supporting start-ups’ assimilation of new knowledge (e.g., coaching), and (3) supporting start-ups’ application of new knowledge (e.g., documentation of planning and reporting as part of the program’s contract design). Further, we discuss the knowledge needs of 63 European start-ups before and their progress as a result of accelerator participation in developing a SBM based on qualitative and quantitative data. All 63 start-ups participated in the same batch of the accelerator in 2019. Regarding the development of a SBM, knowledge needs are described considering the triple bottom line including the economic, ecological, and social layer of a business model. Based on the start-ups’ evaluation, we reflect—with a focus on the environmental layer—about the most promising content and support elements of our SIA case to address the different layers, discuss their combination, and present improvement potentials to reduce start-ups’ knowledge needs. With our findings, we claim to contribute to theory development in the emerging literature on SIAs and give practitioners working with sustainability-oriented start-ups insights into the usefulness of start-up support programs and different accelerator elements for developing a SBM.

The Selection Process and Criteria of Impact Accelerators. An Exploratory Study

“…By showing the distinctiveness of impact accelerators we add to the recent but growing stream of acceleration literature [2,[7][8][9][10] and its emerging impact accelerator stream [4,6].Our research creates knowledge about the criteria which are considered to be important when selecting startups into impact accelerators. From this, we can derive practical implications for both impact accelerator managers as well as startups aiming at being admitted to an acceleration program.…”

“…This is where impact accelerators come in. They specifically support early-stage startups that generate a meaningful social and/or environmental impact alongside positive financial returns [4,5]. This new type of accelerator has emerged to support the growing number of sustainability-oriented startups [42].…”

“…First, by building on and comparing with the more mature and better researched commercial accelerator literature [2,[7][8][9][10] it detects important differences between commercial and impact accelerators in selection processes and criteria thus underlining the distinctiveness of impact accelerators. It therefore contributes to the general accelerator/incubator literature mentioned above and most importantly to the newly emerging impact accelerator stream [4,6].…”

“…To address those complex needs of sustainability-oriented startups more effectively, a new type of accelerators has appeared in the last few years, so-called impact accelerators. Impact accelerators specifically support early-stage startups that generate a meaningful social and/or environmental impact alongside positive financial 2 of 22 returns [4,5]. Due to this purpose, it might be expected that impact accelerators will desire different outcomes than traditional commercial accelerators.…”

“…However, only a few have been able to overcome the "pioneer gap" and build teams, find a customer base, or raise the necessary capital [5,11]. Impact accelerators seem to be highly relevant at this early stage of firm development [4]. Therefore, a better understanding of their selection criteria is of importance as it allows practical recommendations for accelerator managers on how to optimize their startup selection process and selection criteria as well as for sustainability-oriented founders seeking support.…”