The business of accelerating the acceleration of startups

• Main Author: NG, David Wai Lun
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Business Accelerators; Incubators; Venture builders; Startups; Effectuation; Execution-orientation; Strategy execution; Market-centricity; Entrepreneurial and Small Business Operations; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/etd_coll/186; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1186&context=etd_coll
• Institution: Singapore Management University

The cross-domain and cross-border aspects of the Business Accelerator sector has resulted in an ecosystem that has seen actors in the space jostle for clear and competitive positioning. The evolution of Business Accelerators as a business entity, seeking to supply positive interventions to the journey of start-ups, is common to all growth and innovation orientated ecosystems. The ability for Business Accelerator managers to demonstrably impact their subject acceleratees positively has been an under-researched area. Against this background is the rising volume of capital being channeled into funding startups due to the widespread drive for innovation led growth which is increasingly the cornerstone of industry policy. Gaining a better understanding of the role of what interventions support the success of new ventures is the focus of this research work. This research follows a mixed-methods research approach to gain insights into the impact of Business Accelerators on startups. A survey of a sample of accelerated and non-accelerated companies was conducted to explore their impact on performance outcomes. The study further explored six dimensions of managerial activities and capabilities to understand if these dimensions could explain observed differences in performance. The analysis concluded no significant differences existed in the performance outcomes of accelerated versus non-accelerated startups. A further phase of research built upon these findings by selecting two companies that had been through an acceleration program, one being classed as successful and one unsuccessful. Case studies involving interviews of the founders and members of the accelerator program management were then conducted. In addition, a review of other materials including program materials to distill key factors that contrasted the companies and their experiences with acceleration programs was conducted. The key findings of these case studies suggest that Business Accelerators can have a positive impact on companies by focusing founders on prioritizing a detailed execution-orientation, including regular communication with all stakeholders in the program. Experienced key program resources such as the Entrepreneur-in-Residence and Program Managers, suitable mentors and open relationships with fellow cohort startups were noted as sources of intervention which could impact success.