A Framework for Entrepreneurs to Assess Business Accelerator Programs

The purpose of this study was to examine best practices in the business accelerator industry as presented in the literature. Business accelerators offer entrepreneurs access to education, mentors, and investors through fixed-term, cohort-based programs. The accelerator model of supporting startup companies first appeared in 2005, and now it is estimated that more than 3000 programs exist around the world. Accelerators exchange access to resources for equity in young companies. Accelerators are often used by investors to filter companies and locate the best teams and projects. The participants in accelerators need to understand how accelerator program design choices impact company outcomes. Entrepreneurs joining accelerator programs seek to speed their development and maximize their chances of success by accessing accelerator resources, knowledge, and networks. In exchange, accelerators take an equity stake in participating companies and make a seed investment. To give proper consideration to the potential costs and benefits of joining an accelerator, an entrepreneur needs to understand the findings of researchers. Literature reveals that researchers have identified key program design choices that impact outcomes for participating companies. Through an in-depth literature review, these design choices were identified and used to construct a preliminary framework to aid entrepreneurs in their evaluation of accelerator programs. The framework guides entrepreneurs to locate historical data on accelerator performance using public data sources. The gathered data can be used to evaluate accelerator programs prior to application or matriculation in an accelerator program. Entrepreneurs can consider their goals and expectations for accelerator participation and determine which accelerator programs are aligned with their needs