Challenges on Incubation and Acceleration for Startups during COVID-19

This report investigates the challenges faced by startups and entrepreneurs during the incubation and acceleration processes, particularly within the context of the COVID-19 pandemic. The research addresses several key objectives, including understanding the incubation and acceleration processes, the timeframes involved, and the major hurdles encountered by new businesses. The literature review explores the concepts of incubation and acceleration, highlighting the support provided to startups and entrepreneurs in terms of mentorship, funding, and infrastructure. The research methodology employs the research onion model to guide the study's design, encompassing research philosophy, approach, strategy, methods, time horizon, and data analysis techniques. The report uses a deductive approach, incorporating a survey strategy with a quantitative method and a cross-sectional time horizon. Data collection involves both primary and secondary sources, with a focus on probability sampling to gather data from a sample of entrepreneurs. The chosen research instrument is a questionnaire, which enables efficient data collection and analysis to address the research aims and objectives. The report concludes with recommendations based on the findings, aimed at improving the incubation and acceleration processes for startups and entrepreneurs.

Research Method

ABSTRACT.....................................................................................................................................3
INTRODUCTION...........................................................................................................................4
Title.........................................................................................................................................4
Aim.........................................................................................................................................4
Objectives...............................................................................................................................4
Rationale.................................................................................................................................4
LITERATURE REVIEW................................................................................................................5
Describe incubation and acceleration up to 90 percent within 2 months of time period?......5
What is the basic process of incubation and acceleration in context of entrepreneurs and small
businesses within 1 month?....................................................................................................5
Explain basic 2 challenges linked with incubation and acceleration process for startups and
entrepreneurs in 3 months of time period?.............................................................................6
RESEARCH METHODOLOGY.....................................................................................................7
CONCLUSION..............................................................................................................................11
RECOMMENDATIONS...............................................................................................................11
TIMELINE.....................................................................................................................................12
REFERENCES..............................................................................................................................13

ABSTRACT
In this researcher, investigator has worked towards to determine the challenges on
incubation and acceleration process for entrepreneurs and start-ups. For this researcher has used
primary and secondary sources for gathering appropriate information. With primary sources
researcher collected raw and through secondary resources gathered already published
information.

INTRODUCTION
Incubation and acceleration process assist start-ups and new entrepreneurs to develop and
get strong in their business. Incubators and accelerators provide great mentorship and funds so
that their goals and objectives could be fulfilled (Stagars, 2015).
Title
“An investigation into the challenges on incubation and acceleration processes for start-ups
and entrepreneurs during COVID-19.”
Aim
“To determine the major challenges faced by startups and entrepreneurs because of
incubation and acceleration process during covid 19”
Objectives
 To enhance knowledge about the incubation and acceleration upto 90 percent within 2
months of time period
 To measure basic process of incubation and acceleration in context of entrepreneurs and
small businesses within 1 month
 To examine the basic 2 challenge linked with incubation and acceleration process for
startups and entrepreneurs in 3 months of time period
Rationale
The main motive of current research is to determine the major challenges faced by startups
and entrepreneurs because of incubation and acceleration process during COVID-19. The present
research has also helped in fulfilling two perspectives that are personal and professional. I have
learnt about the programs of incubators and accelerators which would help me in future when I
will start my own start-up. I have also learnt about the behavior of entrepreneur I will apply that
in my personality.

LITERATURE REVIEW
This refers to the chapter that gives required information to the reader about the topic of
the research. For doing literature review, researcher has taken help of books, journals, articles,
magazines and many more.
Describe incubation and acceleration up to 90 percent within 2 months of time period?
According to Schmitt (2019), incubation process start ups and entrepreneurs who are ready
with their business plan and to start uses the incubation process. Basically, incubation process is
the process when entrepreneurs require physical training and facilities, mentoring and
consultancy services. The time period of the incubation process depends upon the sector of the
organization. Entrepreneurs are able to set up their organization in the incubation process and
produce their viable product or service. In this technical support is provided to entrepreneurs and
startups for developing their services or products. In this process only commercialization of the
product happens, for this entrepreneurs need high investment and need financial assistance.
According to Richards (2020), acceleration process refers to the process when an
entrepreneur or startup faces problem of gaining market share and globalization. These problems
are solved in acceleration process with the assistance of acceleration process and programs the
products and services of entrepreneurs or start ups start gaining their market share and focus
towards attracting attention of investors like venture capital and angel investors. In these
programs entrepreneurs and startups take trainings at the same time. The acceleration process
starts after incubation process; it is not the continuation of incubation process because it is a
different process and renews to fulfill the needs of entrepreneurs and startups.
What is the basic process of incubation and acceleration in context of entrepreneurs and small
businesses within 1 month?
According to Paroje (2019), acceleration process, in this accelerator programs are formed
and structured which have specific time frame in which entrepreneur and startup spend weeks or
months operating with a group of expertise for building out business and avoid all those
problems that can come in future. The companies and start ups which are very at early stage are
provided with a small seed investment and provided with a great network of mentorship. The
accelerators who are providing the service in exchange get a small number of equity shares.
Network of mentorship consist executives, venture capitalist, experts from industry and various

investors. They are support to all the new start ups and entrepreneurs. Incubation process helps
those startups and entrepreneurs that are at earlier stage and do not work on predefined schedule.
In the incubation process, incubators help startup and entrepreneurs to build their business plan,
works on the market which can fit the product, determine intellectual property issues. In this
incubation process, startups and entrepreneurs are able to work in the co-working environment or
with other company so that they can learn from such experiences and get mentoring while
working and make connection with the local community.
Explain basic 2 challenges linked with incubation and acceleration process for startups and
entrepreneurs in 3 months of time period?
According to Lose, T., Rens, Yakobi and Kwahene (2020), incubation and acceleration
process are very important for the startup and new entrepreneurs as they help in getting success
but there are some challenges that are linked to incubation and acceleration process.
Fees: The process of acceleration and incubation are quite expensive and need start ups and new
entrepreneurs to give up their some equity to this program. The fees can vary according to their
services provided to entrepreneurs and startups. Incubators fees may vary but accelerators fees
are up to 6% of equity.
Location: The one of the biggest disadvantage of incubation and acceleration process is that the
service provided by incubators and accelerators are only found in luxurious places as compared
to rural areas. Only entrepreneurs and startups that are working in urban areas get the service of
incubators and accelerators. This creates problem for start ups and entrepreneurs to get
mentorship and financial service from them. The rates of accepting start ups and entrepreneurs
are very low by accelerators and incubators because they only take those start ups that have great
potential and contribute them in earning profits. There are many entrepreneurs and startups that
start in a year and for accelerators and incubators, it is not possible to accept all the start ups and
new entrepreneurs.

RESEARCH METHODOLOGY
The research onion model was introduced in Research Methods for Business Students book
which was presented by Saunders, Lewis and Thornhill. With the help of this model students can
explain different stages of writing dissertation. The research methodology can be designed with
effective progression which is provided by research onion (Daniel, Kumar and Omar, 2018). The
model determines ways in which different elements involved in research helps in developing
final research design. The research onion outlines different layers they are as follows-
Research philosophy-
Research philosophy is a belief about the way through which data must be gathered and
used. The philosophy is generally used in terms of epistemology and ontology. In academic
studies research philosophy is divided into interpretivisim and positivism, they are
epistemological position which is adopted by researcher (Viehof and Winner, 2018). In
positivism, the research data is collected through value free manner and data is verifiable. It
provides knowledge that is independent of subject being studied. Interpretivism means when a
researcher has their own perception and understanding of reality. The positivism studies are

considered as more scientific whereas interpretivism studies are qualitative in nature. In this
research positivism philosophy is considered as it helps in gaining positive information from
observer experience.
Research approach-
Research approach is considered as plan and procedure for conducting research. When
researcher chooses appropriate methodology, research onion helps in providing suitable research
which must be picked by researcher (Nzembayie, Buckley and Cooney, 2019). The research
approach is divided into two category inductive approach and deductive approach. The main aim
of inductive approach is to develop theory; it is also known as inductive reasoning. The inductive
approach is start with theories and observation which will be proposed at the time of research
process in result of observation. The main purpose of deductive approach is to test an existing
theory, it starts with specific hypothesis development which is observed by researcher on the
basis of Literature review. In this research, deductive approach will be applied as it helps in
explaining relationship between variables and concepts.
Research strategy-
Research strategy is a plan through which research study will be conducted. The research
study helps in helps researcher in proper planning, monitoring and executing study. It is divided
into various types such as experimental research, case study research, interview, systematic
literature review, action research and surveys. The researcher chooses strategy on the basis of
Purpose and data required for conducting research. For conducting the research, survey is used as
it collects large amount of information.
Choices of Method-
For conducting the research in effective manner, research onion suggests mixed, mono
and multi method. The mono method includes only one method for conducting research. In
mixed method, two or more methods are used for research such as qualitative and quantitative.
The multi method includes varieties of method for doing research. In this research quantitative
method is used as it helps in studying into broader aspect including more subjects and
Generalization of results (Roach, Christensen, and Rieger, 2019).
Time horizon-
Time horizon refers to the time which is taken for conducting research. The time horizon
is divided into two types, longitudinal and cross section. In cross sectional, data is collected from

population at specific time whereas in longitudinal, data is collected repeatedly and it is available
for months, quarters and several years. In this research cross sectional is used as it doesn't require
lot of time and cost.
Data collection and analysis-
Data collection and analysis is a last stage of research onion which includes procedure and
techniques that helps in conducting research. Through this onion, researcher may know the ways
and purpose of conducting research. In data collection and analysis, researcher chooses between
primary and secondary data and qualitative and quantitative data. In this research both the
method are used whether primary or secondary.
Sampling-
Sampling is a process of selecting predetermined number of observation from large
number of population. For conducting sampling method there are two methods they are
probability and non probability. In this dissertation the chosen method is probability sampling as
it takes minimum time for selecting sample from large number of people. A sample of 10
entrepreneur will be taken for this research report. The advantages of probability sampling is that
there is absence of sampling bias and systematic error, through this method there is higher level
of reliability in research findings (Schreier, 2018). It also collects sample which are
representative of population. The other method of sampling is non probability, in this dissertation
this method is not valuable as it doesn’t provide facilities of selecting sample from large number
of population. The disadvantage of non probability sampling is that it doesn’t represent
population effectively as compare to probability sampling. Even in this method margins of errors
and confidence interval cannot calculate easily.
Research Instruments-
The research instrument is a tool which is used to collect, measure and analyze data
according to the subject of research. The research instruments include surveys, questionnaire,
simple tests and interviews. The researcher only makes decision which specific tool they want to
choose in their research. The Chosen research instrument must answer the research aims,
objectives, question and shows result of hypothesis whether prove or disprove. For this
dissertation the chosen research instrument is questionnaire as it is inexpensive and results are
get in quick way. By using questionnaire, researcher can gather data through practical way. With
the help of questionnaire the data can be quantified and used to compare and contrast other

research. By comparing errors due to translation get decreased and provides easy analysis of
results.

CONCLUSION
From the above mentioned it is concluded that incubation and acceleration process helps
entrepreneurs and new companies to set up their business in the market. For this research
methodologies have been used to gather required information to attain the objectives of research.
RECOMMENDATIONS
From the above report it is being recommended to incubators and accelerators that they
should give their services to entrepreneurs and start-ups that are going to operate in remote areas.
They should take assistance of advance technologies so that even in uncertain situations also they
can give their assistance to entrepreneurs and start-ups.

TIMELINE

REFERENCES
Books and Journals
Daniel, B., Kumar, V. and Omar, N., 2018. Postgraduate conception of research methodology:
implications for learning and teaching. International Journal of Research & Method in
Education. 41(2). pp.220-236.
Lose, T., Rens, V., Yakobi, K. and Kwahene, F., 2020. Views from within the incubation
ecosystem: Discovering the current challenges of technology business
incubators. Journal of Critical Reviews. 7(19). pp.5437-5444.
Nzembayie, K. F., Buckley, A. P. and Cooney, T., 2019. Researching pure digital
entrepreneurship–a multimethod insider action research approach. Journal of Business
Venturing Insights. 11. p.e00103.
Roach, A., Christensen, B. K. and Rieger, E., 2019. The essential ingredients of research
supervision: A discrete-choice experiment. Journal of Educational Psychology. 111(7).
p.1243.
Schreier, M., 2018. Sampling and generalization. The Sage handbook of qualitative data
collection, pp.84-98.
Stagars, M., 2015. Incubators and accelerators. In University startups and spin-offs (pp. 131-
136). Apress, Berkeley, CA.
Viehof, M. and Winner, H., 2018. Research methodology for a new validation concept in vehicle
dynamics. Automotive and Engine Technology. 3(1). pp.21-27.
Online sources
Schmitt .L., 2019. INCUBATION IS THE HARD PART BETWEEN DISCOVERY AND
SUCCESS [Online]. Available through: <https:// https://www.theinovogroup.com/incubation-is-
the-hard-part-between-discovery-and-success/ />.
Paroje., 2019. PRE-INCUBATION, INCUBATION AND ACCELERATION PHASE [Online].
Available through: <https://www.paroje.com.tr/en/n/pre-incubation-incubation-and-acceleration-
phases-in-enterprises.html/>.
Richards .R., 2020. ACCELERATORS VS INCUBATORS [Online]. Available through: <
https://masschallenge.org/article/accelerators-vs-incubators/>.