Key Factors Affecting a Technology Entrepreneur's Choice of Incubator or Accelerator

Abstract

Technology entrepreneurship rarely succeeds in isolation; increasingly, it occurs in inter- connected networks of business partners and other organizations. For entrepreneurs lack- ing access to an established business ecosystem, incubators and accelerators provide a possible support mechanism for access to partners and resources. Yet, these relatively re- cent approaches to supporting entrepreneurship are still evolving. Therefore, it can be challenging for entrepreneurs to assess these mechanisms and to make insightful de- cisions on whether or not to join an incubator or accelerator, and which incubator or ac- celerator best meets their needs. In this article, five key factors that entrepreneurs should take into consideration about in- cubators and accelerators are offered. Insights are drawn from two surveys of managers and users of incubators and accelerators. An understanding of these five key success factors (stage of venture, fit with incubator’s mission, selection and graduation policies, services provided, and network of partners) and potential pitfalls will help entrepreneurs confidently enter into a relationship with an incubator or accelerator.