Accelerator or incubator: Which is right for your SME?

Accelerator and incubator programmes are becoming more popular among small and medium-sized enterprises (SMEs) in South Africa. These programmes provide SMEs with expert advice, training, mentorship, networking, and often financial support to improve the odds of success.

However, the terms “accelerator” and “incubator” are often used interchangeably, which can be confusing for entrepreneurs. Kyle Ballard, head of Accelerators at B&M Analysts, explained the key differences between the two programmes.

According to Ballard, accelerators help SMEs that demonstrate potential for rapid growth by providing access to customers, unlocking scale within operations, and financial support. On the other hand, incubators nurture start-ups through the beginning phases of the business. Incubators provide a conducive environment in which entrepreneurs can build on their ideas, determine product-market fit, and get investment ready.

Ballard listed three key differences between accelerators and incubators that SMEs should consider when choosing which programme is right for their business. Firstly, incubators are primarily focused on start-ups, while accelerators target scale-ups.

Secondly, incubators work based on the entrepreneurs’ needs and have no time limit to the duration of the incubation services provided. Accelerators, on the other hand, provide intensive training for entrepreneurs for comparatively fixed time frames. Finally, accelerators typically help build high-potential small businesses into full-fledged companies through structured market access and scaling up support.

Ballard highlighted that entrepreneurs need to determine which programme is the right fit for their business through careful self-reflection. For SMEs at the stage where they are ready to catapult their growth to the next level through market access to large corporates and investment opportunities, two cluster-based Business Accelerators are currently available to enter.

The EThekwini Furniture Cluster (EFC) accelerator programme is one such programme. The programme targets the furniture industry and aims to unlock unprecedented growth for SMEs. Applications for the EFC programme are now open and close on Tuesday, 28 February 2023. SMEs in the furniture industry are encouraged to apply for the programme and take advantage of this opportunity.

In conclusion, accelerator and incubator programmes provide SMEs with the support network they need to succeed. SMEs need to consider the key differences between these programmes and carefully evaluate which programme is the right fit for their business. With the EFC programme now open for applications, SMEs in the furniture industry can take advantage of this opportunity to catapult their growth to the next level.

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