Is Joining a Business Incubator or Accelerator Always a Good Thing?

Abstract

Business incubators and accelerators are often hailed as essential tools for fostering growth in startups. However, not only do entrepreneurs often face the question of which incubator or accelerator to join, we suggest that they should also question whether or not to join one at all. Is joining a business incubator or accelerator always a good thing? In this article, we investigate some of the negative outcomes entrepreneurs can experience when engaging with an incubator or accelerator. We apply a cross-case analysis of empirical observations from qualitative interviews with Danish and Canadian entrepreneurs to arrive at a set of recommendations that entrepreneurs should keep in mind when considering such an engagement. These points are further qualified based on informal interviews with four serial entrepreneurs.

Keywords

• accelerator
• Canada
• Denmark
• disadvantages
• incubator
• Lithuania
• new venture
• start-up