What is the difference between business incubators and business accelerators?

What is the difference between business incubators and business accelerators?

If you want to know what is the difference between what is the difference between business incubators and accelerators, here are 6 differences that will help you choose the best for your project. Productive and successful.

Among the ways to develop projects that entrepreneurs are looking for are business incubators and business accelerators, and between this and that they fall into the problem of determining the best to support their projects correctly. Therefore, in this article, we will learn about the difference between business incubators and business accelerators and how to choose the most suitable for your business between them.

But before moving on to the difference between incubators and accelerators, we must first know the concept of each.

What are business incubators Business Incubators?

We can define business incubators as programs that are prepared by specialized institutions with the aim of helping start-up companies reach success in their projects; The methods you follow for this are:

  • Assisting the entrepreneur in providing training, technical support, guidance, advice and solving problems associated with his startup.
  • Providing access to finance by linking it to investors interested in its work.
  • Providing co-working spaces that facilitate the work of the entrepreneur and enable him to interact with other entrepreneurs by creating a micro-entrepreneurial environment for exchanging experiences.
  • Assist in managing finances and ensuring appropriate use of funds.
See also  The best savings account in the Sultanate of Oman

What are business accelerators? Business Accelerators?

Business accelerators are economic entities or institutions that aim to help startups start and grow by providing assistance and advice in various areas such as marketing, financial management, technical and legal expertise, strengthening their relationships with investors, or providing financial support directly.

But wait, isn’t the definition of accelerators the same as incubators? Yes, business accelerators and business incubators are quite similar in terms of goals and the methods used to achieve them; But the main difference remains in how it is implemented.

What is the difference between business incubators and business accelerators?

What is the difference between business incubators and business accelerators?

Here are the main differences:

Duration

The first and most important difference between business incubators and accelerators is the incubation period (or the accompanying period). Support for incubators extends from 6 months to several years, while support for accelerators extends from one month to 6 months only.

quality of projects incubated

Business incubators support ambitious but immature projects that need support and advice in order to take off and develop; Which explains the long period of time during which the projects are supported. As for accelerators projects, they are almost ready for production and have a great potential for rapid growth; Therefore, the incubation period is usually shorter.

Difficulty getting accepted into business accelerators

Supporting accelerators for very promising and semi-completed projects to speed up their completion; It summarizes months or perhaps years of work and experience that an entrepreneur would need alone. Therefore the selection criteria are more stringent to join the accelerators; She accepted only dozens of thousands of applicants for her support.

financial return

Business incubators and accelerators may be available in both free and paid models. However, the free model prevails over incubators, as most of them are non-profit organizations and are launched in cooperation between the government and the private sector through the provision of participatory programs that guarantee full support for the project.

See also  The best successful business project in Saudi Arabia - platform

The paid model in the work of incubators or accelerators depends on owning a percentage of the company (the pilot project) in exchange for services, or in less cases in the form of debt to be paid later upon the success of the project.

Accelerators tend to work with the paid model where they typically get 6-8% of the company. As for the incubators that operate on the paid model, they get 20% of the project due to the long period of support, and the increased risk due to the presence of fewer criteria for accepting incubation.

Work Program Structure

Business accelerators set schedules that are very short and full of tasks and goals at the same time. Following the accelerators’ work programs is more difficult and requires a great and strict commitment to make the project a success in the shortest possible period.

While commitment is also necessary in business incubators, they do not pose great pressures on entrepreneurs due to the longer duration of their programs.

Geographical location

Most business incubators allocate participatory workspaces to incubate and support emerging entrepreneurial projects while exchanging experiences with each other.

While the majority of business accelerators tend to work remotely via the Internet and without the need to be in a physical location, which reduces costs and provides the opportunity for more entrepreneurs to join, but this may reduce communication between entrepreneurs and exchange experiences.

Which is better for your project, an incubator or an accelerator?

How do you choose the best for your project?

After viewing the difference between business incubators and accelerators, you may be wondering how to choose the best for your project to collaborate with. Well, your choice should mainly depend on the maturity of your project. If your project is in its infancy, so that it is still an idea in your head, then it may be more appropriate for you to cooperate with a business incubator.

See also  Hair transplant costs in Egypt - our business

But if your project already has the work team, it is under work and implementation, has prototypes and development ideas, and needs only a few steps to move to the production stage and achieve profits, then it is better for you to cooperate with one of the business accelerators.

It should be noted to the existence of institutions Provides business incubator services and business accelerators at the same time according to the needs of each project.

The most important business incubators and accelerators in the world

The most important business incubators and accelerators in Egypt

The most important business incubators and accelerators in Saudi Arabia

The most important business incubators and accelerators in the UAE

Now that you know the difference between business incubators and business accelerators, if you want to join one of the business incubators or accelerators, of course each company has its own system, but usually you will start applying by entering the company’s website page and knowing the details and then filling out the application form, and then you will be contacted to complete Measures.

In this article, we explained the difference between business incubators and business accelerators and the way each of them works in order to make it easier for you to know the next step for your project, which will put you among the ranks of successful entrepreneurs in the world.

Read also: 7 tips for saving and investing while owning a business

Leave a Reply

Your email address will not be published. Required fields are marked *