Learn everything about Accelerators & Incubators with an MBA in start-up and entrepreneurship

With the third-largest start-up economy in the world, India is home to over 50,000 start-ups as of 2021, registered under the Department for Promotion of Industry and Internal Trade (DPIIT), of which over 50 are unicorns. As more and more start-ups sprout across the nation, most of them are looking to replicate the success of business models that went on to become million-dollar valuations. To top it all, these start-ups have proven to become a golden chapter in the history of India as an engine of growth and employment with emerging markets.

Several start-ups in India stem from Tier 2 and Tier 3 cities where exposure is low and access to resources is limited. India, as a nation is full of brilliant minds and inventors with an unbelievable grasp of technology and clarity of the end product. To help these businesses and individuals boost their efficacy, a community of business insiders is essential in not only streamlining the business but also ensuring that it reaches the market at the correct time. Start-up accelerators and incubators can make the magic happen.

What are start-up accelerators and incubators, and what role do they play?

Through education, mentorship, and funding, start-up accelerators support early-stage companies. Entering an accelerator is an intense experience. It provides immersive and rapid education to innovation-led companies at the nascent stage by compressing years’ worth of experience into a few months. The duration is usually 3-6 months, during the early venture stage. Seminars are conducted on-site.

Start-up accelerators, also known as seed accelerators, are cohort-based, fixed-term programmes, which include mentorship and educational components, leading to a public pitch event or demo day. They promote the long-term growth of a company within 3-6 months.

Start-up incubators, on the other hand, are more open-ended. They do more than provide mentorship and education. The aim of an incubator isn’t to boost a company’s growth but to nurture it over a long period, typically longer than a year. Incubators support businesses in turning their concepts into products fit for a market, connect them with fellow professionals who can provide financial support, expertise across industries, or are on the same path of building a venture from the ground. They do not get involved in the day-to-day dealings of a start-up, unlike accelerators, but are more like the background support team for ad hoc technical, human resource and legal support.

According to the US Chamber of Commerce, a start-up incubator is a collaborative programme for start-up companies — usually physically located in one central workspace — designed to help start-ups in their infancy succeed by providing workspace, seed funding, mentoring and training.

By partnering with accelerators and incubators, start-ups can exponentially fast pace their road to success. A conducive environment, personally allocated resources, mentoring, much-needed education, people and partners — all coming together to help them realise their full potential and increase business efficacy. As more and more start-ups make their way into the economy, so do accelerators and incubators, to boost every single one of them and give them the tools and expertise needed to chart their path to success.

Note: The views expressed in this article are that of University of Petroleum and Energy Studies (UPES) and do not reflect/represent those of Shiksha