18.12.2014

Incubators And Accelerators Having Positive Impact On Start-Ups

Small businesses are getting more help than ever to get their ideas off the ground, according to a new report commissioned by O2.
 
The report found that start-ups that have received support from the UK's incubator and accelerator ecosystem are significantly more likely to receive the financial investment they need.
 
It examined nearly 60 start-up programmes currently in operation, finding that the number of such programmes has more than doubled since 2011.
 
However, the report noted that three out of five of these programmes are based in London, indicating the need for more investment in regional areas - although there were promising signs in Birmingham and Edinburgh.
 
Overall, start-ups who take advantage of incubator and accelerator programmes secured more than £68,000 more in investment than those who do not.
 
"We’re also seeing a notable increase in the number of start-up programmes backed by large corporations - and in fact these programmes make up 12% of the total number of accelerators and incubators operating in the UK today," said Feilim Mackle, O2's Sales and Service Director.

Expert Opinion

It is excellent to see that many entrepreneurs are benefitting from access to vital support as they look to establish new operations, with incubator and accelerator programmes proving to be a useful tool. <br/> <br/>"However, it is a concern to see that more needs to be done to develop such ecosystems outside of the capital, as doing so will ensure that the skills, talent and expertise outside of London is able to develop and growth. <br/> <br/>"We would also urge small businesses to ensure they seek legal advice at all stages to ensure that they are meeting relevant regulations when it comes to finance and getting operations off the ground." Fergal Dowling - Partner