The value of business accelerators and incubators – an entrepreneur’s perspective

Abstract

Purpose Inspired by an efficacy debate, this paper aims to understand to what extent do entrepreneurs value business accelerators and what contributes to this value. And as entrepreneurs consider accelerators to be a viable alternative to traditional business incubators, the research seeks to compare these startup support options. Design/methodology/approach Guided by resource-based theory, the researchers constructed a variance model and analyzed it using quantitative methods based upon data collected from 205 accelerators users as well as 66 incubator users for comparison. Findings Results indicate that the accelerator users find the programs to be very valuable for improving their business outcomes. Moreover, the users feel the program experience to be valuable regardless of whether their businesses ultimately survive. Knowledge- and culture-related resources contribute significantly to users’ perceptions of value. Findings indicate notable differences in the perceptions of accelerator versus incubator users. Research limitations/implications The research contributes to the ongoing academic debate concerning the efficacy of accelerators and provides a model for predicting user value. The research is limited to the USA. Practical implications Research serves as a practical guide for prospective accelerator users, as well as provides valuable insights to accelerator administrators and marketers for enhancing their programs. Originality/value The study uniquely provides a user’s perspective and highlights distinct differences in the perceptions between accelerators and incubators users.

Processos em Relacionamentos Interorganizacionais para Desenvolvimento de Capacidade de Absorção em Startups

“…This corroborates the recent study by Müller, Buliga and Voigt (2020), which indicates that this capacity has a positive relationship in nascent companies, i.e., startups are active in the acquisition and assimilation of external knowledge. The very structure of the acceleration programs favors the acquisition of external knowledge since it is aimed at providing a network of mentors and personalized training to startups, in the same way that it encourages the internalization and dissemination of this knowledge (Cri-an et al, 2019;Lange & Johnston, 2020).…”

Entrepreneurship Education as a Strategy to Build Regional Sustainability

“…The overall objective of the programme is to have an impact on sustainable growth in the Arctic region. The target groups are comprised of start-ups already included in a parallel programme run by the facilitators simultaneously (an incubator programme [24]), and completely new start-ups. The ambition of the programme is to strengthen the evaluation and early stages in the incubation process, leading to a more mature and complete business idea and business model.…”

“…We want to explore a specific version of an entrepreneurship education programme in a specific context. The specific entrepreneurial education programme we use as a case is organised as an accelerator programme based in northern Norway [24]. We conducted observations of and interviews with 26 persons involved in the programme.…”

“…These types of practice-based programmes are often a collaboration between wide ranges of different stakeholders, from an international industry level to a local government level. An accelerator is a version of practice-based entrepreneurship education in which start-up companies of a certain maturity are targeted; 'accelerators are organisations that aim to accelerate early venture gestation by providing cohorts with formal education and mentorship connections during intensive, temporally compressed programmes that usually last three months' [24] (p. 1). Ideally, these are startup companies with a well-developed business idea which are almost ready for market but need finance to realise the potential.…”

Entrepreneurship at Any Age

“…The role of formal and informal organizations in shaping and supporting entrepreneurship is critical [31]. Yet, the type of support may vary given the heterogeneity of entrepreneurs.…”