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Do Business Incubators Actually Help Businesses?

Posted 13 days ago

Do Business Incubators Actually Help Businesses?
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Incubators are attractive for first-time founders because you can learn from experienced executives, test your business model and gain industry credibility from the program's prestige.

Most programs see founders relocate to the incubator’s office space, where you work alongside other start-ups for the duration, or until you have the resources and capabilities to grow alone.

But do business founders feel that incubators have helped their business thrive? We explore compelling survey data in which owners discuss how the use of business incubators have had on their enterprise.

The total startup sample consisted of 441 enterprises (343 had been through an accelerator, 66 an incubator, 23 another support type with elements of an accelerator or incubator).

Most start-ups surveyed consider the contribution of incubators and accelerators they participated in to be significant or even vital to their success.

Of the start-ups surveyed 43% report that the accelerator or incubator they participated in was significant to their success and 23% say that it was vital; only 9% of startups find no contribution or a negative impact of their programme on the success of their business.


CEO of NexFin, Sacha Bright, said: “an accelerator programme is essential learning for both an experienced entrepreneur and even more vital for someone who has never owned a business.

“Not only are you around like-minded entrepreneurs and mentors who you can feed off but it's also good to have a structure and go back to basics. As you can see from the survey, 6 out of 10 new business owners found benefits from attending an accelerator programme."


Advertised Equity Crowdfunding Pitch

Itasca Wines is a Hampshire-based vineyard and winery that produces fine English wines. The company is raising funds for its contract winemaking facility, to fulfil the growing demand from vineyards. There are over 760 vineyards in the UK currently, 111 have their own winery and only a handful of these provide contract winemaking services to other vineyards. Itasca Wines aims to become a major winemaker and create award-winning wines at Penn Croft. The company planted its first vineyard of 16,000 vines in May 2019 and has featured in Vineyard Magazine in February and May 2019.

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Author: Sacha Bright & Oliver Murphy


To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.

Tagged: Investment Start-ups Entrepreneurs Incubators Raise Finance

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