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Scale quickly or fail fast: An inductive study of acceleration

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  • Shankar, Raj K.
  • Clausen, Tommy H.

Abstract

Accelerators are a fast-growing form of entrepreneurship support. Literature about them remains descriptive and disjointed. While some consider them new, others believe them to be a next-generation incubator model. Based on a qualitative inductive study in India, with inputs from both accelerator executives and founders of accelerated ventures, we shift the analysis from the form (accelerator) to its underlying mechanism (acceleration). We identify at least three characteristics that make acceleration unique: a focus on product-market fit ventures; a focus on time-compressed scaling; and a focus on aggressive scalability testing. Our findings call for a shift in entrepreneurship support research (including accelerators) from “form” to “mechanism.” Entrepreneurs will find our three characteristics useful in assessing which programs truly accelerate, and therefore increase their chances of achieving scale. Accelerator executives can now distinguish their offerings from other support forms (e.g. incubators) by searching for ventures with product-market fit, offering time-compressed scaling services and testing the ventures’ ability to scale rapidly. University administrators and policymakers can use the findings to add acceleration (to support scaling) as a component of their entrepreneurial ecosystems. Implications and future research directions are discussed.

Suggested Citation

  • Shankar, Raj K. & Clausen, Tommy H., 2020. "Scale quickly or fail fast: An inductive study of acceleration," Technovation, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:techno:v:98:y:2020:i:c:s0166497220300468
    DOI: 10.1016/j.technovation.2020.102174
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    References listed on IDEAS

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    2. Avnimelech, Gil & Rechter, Eyal, 2023. "How and why accelerators enhance female entrepreneurship," Research Policy, Elsevier, vol. 52(2).
    3. Atzmon, Morane Batya & Vanderstraeten, Johanna & Albers, Sascha, 2022. "Small-firm growth-enabling capabilities: A framework for young technology-based firms," Technovation, Elsevier, vol. 117(C).
    4. Van Lancker, Evy & Knockaert, Mirjam & Collewaert, Veroniek & Breugst, Nicola, 2023. "Preparing for scaling: A study on founder role evolution," Journal of Business Venturing, Elsevier, vol. 38(4).
    5. Amann, Marie & Granström, Gabriel & Frishammar, Johan & Elfsberg, Jenny, 2022. "Mitigating not-invented-here and not-sold-here problems: The role of corporate innovation hubs," Technovation, Elsevier, vol. 111(C).
    6. Becker, Kai & Ebbers, Joris J. & Engel, Yuval, 2023. "Network to passion or passion to network? Disentangling entrepreneurial passion selection and contagion effects among peers and teams in a startup accelerator," Journal of Business Venturing, Elsevier, vol. 38(4).
    7. D’Amico, Elettra & Belitski, Maksim & Colombelli, Alessandra, 2023. "Evaluating Internal and External Knowledge Sources in Adopting Artificial Intelligence," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202303, University of Turin.
    8. Berna Beyhan & Derya Fındık, 2022. "Selection of Sustainability Startups for Acceleration: How Prior Access to Financing and Team Features Influence Accelerators’ Selection Decisions," Sustainability, MDPI, vol. 14(4), pages 1-23, February.
    9. D’Amico, Elettra & Belitski, Maksim & Colombelli, Alessandra, 2023. "Evaluating Internal and External Knowledge Sources in Adopting Artificial Intelligence," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202315, University of Turin.
    10. Thomas Ulmer & Ulrich Pape, 2022. "Streamliners, Switchmen and Bridge Builders: About the Mechanisms and Uniqueness of Accelerator Programs," Sustainability, MDPI, vol. 14(23), pages 1-25, November.

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