Accelerator or Incubator: What’s meant for you?
- BY Akshay Arora
Feature Writer, BusinessEx
- Nov 22,2017
- 10 Mins Read
Often entrepreneurs feel the need of either an incubator or an accelerator to push up their business a step forward. A general problem existing in the business environment that entrepreneurs face is they do not know what the difference between an incubator and accelerator is. That puts them in trouble to decide whether to select an incubator or accelerator. Let’s begin with the basics:
What is the difference between an incubator and accelerator?
- Incubators support startups at the beginning of their phase to grow by helping in transforming an idea into reality with a proper business model.
Accelerators help existing businesses in managing their business, investment, mentorship and to find the solution they are looking for.
- Incubators render their services for a longer duration. The timeframe can be in between 1 -3 years.
Accelerators provide their service for a shorter time span which could be in between 3-6 months at maximum.
- Incubators do not provide funds to a startup so they won’t ask for an equity stake.
As accelerators invest their capital in the business they expect to have a certain percentage of stakes in the business.
- Incubators have no tough criteria in selecting a startup but they are diversified according to industries so they choose accordingly.
Accelerators are hard to find as they put more focus on all the main aspects, like the business scale, achievements, future growth, risks, etc.
- Both the accelerators and incubators provide mentorship and resources to grow with the help of their network of business experts and investors.
Why is mentorship a challenge in India?
Not everyone is made to be a mentor they also face the challenges of new trends in the way of doing a business and sometimes guide an entrepreneur in the wrong direction. In India, entrepreneurs face the harsh reality of fraud mentors as there are fake mentors that may try to steal your idea. So that makes it hard for entrepreneurs to find a right mentor for their business and build trust easily. Business Exchange is the right platform where you will find the right mentors that will help you with proper guidance.
Why Incubators and Accelerators are the right solutions for mentorship?
Incubators and accelerators are the best at what they do. They both have a network of business experts that are ready to guide you and have an experience more than anyone else. You must know that startups and businesses seek their help because they assure the safety of confidentiality and caters to multiple clients on daily basis. They have the best solutions of all the problems and knowledge of all the trending ways of doing a business.
What suits you well?
Now the difficult part comes to you on making the right choice for your business. You must have a hint of what they do and what might be the best solution for you after reading the above information but don’t rush this decision. It is better to do a swot analysis i.e. strength, weakness, opportunity, threats and research according to your needs. This will help you decide what suits you well.
It is surely hard to make a right choice but it is crucial to make one in order to reach the destination you are looking for an entrepreneur. If you are a startup entrepreneur then business incubators are the best solution for you and if you are an established business entrepreneur then accelerators are the right choice researched information. But to find the right incubator Business Exchange is the right solution.
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