As an entrepreneur or as a startup founder, you might have undoubtedly heard of business incubators and accelerators. However, are you truly aware of them and how they can assist you? These organizations provide startups and growing businesses with resources and support to help them grow faster and improve their chances of success in the early stages of any venture. 

In this blog post, we shall understand the important role played by them in supporting the startups for the economic growth of our country.

Who are Business Incubators?

A business incubator is an organization created to support the formation and expansion of startups and new businesses. These incubators offer a range of tools and services to assist business owners in overcoming obstacles and successfully launching their ventures. There are many government schemes that are working in the direction to support Startups such as SEED FUNDING SCHEME.

In addition to business counseling, mentoring, training, and network access, business incubators provide shared workspace, administrative services, and training. Some incubators may also help entrepreneurs find investors and other sources of funding, or they may offer initial funding. 

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A business incubator’s main objective is to boost the chances of success and quicken the growth of the incubator startup. By offering resources and support, incubators can assist entrepreneurs in overcoming typical challenges like a lack of business experience, marketing and sales expertise, funding constraints, and industry connections. A startup should be ready for upcoming risks too. Here are few proven risk mitigation strategies for startup.

A business incubator usually only allows a company to stay incubated for one to three years. During this period, companies collaborate closely with the incubator to refine their business plans, test their goods or services, and prepare to expand and enter new markets. Checkout best business plan tips for startups.

Here are some examples of business incubators in India : 

  • CIIE-IIMA ( Centre for Innovation Incubation And Entrepreneurship – IIM Ahmedabad)
  • IAN (Indian Angels Network)
  • iCreate
  • Amity Innovation Incubator

Who are Business Accelerators?

An organization that supports high-potential startups and emerging businesses by speeding up their growth and development is known as a business accelerator. In contrast to an entrepreneur incubator, which mainly concentrates on startups, accelerators work with businesses that have already commenced operations and aim for swift expansion. 

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Business accelerators provide short-term, three—to six-month programs focused on growth. During these programs, selected businesses are given resources, support, and mentorship to help them grow quickly and hit important milestones such as high returns.

By the time the acceleration program ends, companies should have grown significantly, proven their business model, and be ready to seek more funding or make a more stable entry into the market. 

India has 794 startup business accelerators and incubators.

Here are some examples of business accelerators in India : 

  • GSF Accelerators
  • Axilor Ventures 
  • NASSCOM 10,000 Startups
  • Venture Catalysts

Differences between Business Incubators and Accelerators

  • Startup Stage: Startup incubators focus on early-stage businesses without a minimum viable product (MVP), while accelerators focus on startups with high growth potential and that have found their MVP.

  • Funding: While a startup accelerator can offer funding in exchange for equity, a startup business incubator typically provides network support for funding.
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Duration: Business founders typically work with business incubators for one to five years. Startup accelerators are quick-witted institutions that work with entrepreneurs for three to six months.

Role of Startup Accelerators

  • The startup accelerators compress their years of knowledge and expertise into a few months’ worth of instruction. 

  • It’s a fast-paced, intensive learning approach created to reduce the time it takes for creative businesses to reach their full potential.

  • Compared to a similar set of companies that did not participate in accelerator programs, companies that graduated from top startup accelerator programs accelerated in reaching important milestones, such as raising capital through venture capital, exiting through acquisition, and achieving consumer traction.

  • Accelerators often offer additional support networks, such as legal practices, patent attorneys, significant industry experts, advisers, regulatory specialists, and CFO services, ready to counsel early-stage entrepreneurs for free or at a reduced cost. 

  • A business plan, financial projection, sales and marketing strategy, organizational culture, team-building, technological roadmap, and much more are all supported by the top startup accelerators for teams. Accelerators also help the founding team identify critical skill set shortages and develop a hiring strategy.

Role of Startup Incubators

  • As long as they meet certain requirements and attract investors, startups can receive assistance from incubators in raising capital and other ancillary services needed for successful operations. An increasingly common method for entrepreneurs to raise capital and take care of other early-stage business needs is through incubators.

  • It has been established that incubation serves the general public as well and is employed to meet several needs related to economic and socioeconomic policy, such as but not restricted to:
  1. They are creating wealth, jobs, and inspiration for intelligent individuals to start their businesses that promote an entrepreneurial culture and work ethic in a community or country.
  2. Technology commercialization and other forms of rapid invention. 
  3. Creating or encouraging the growth of local industrial clusters.
  4. Establishing, maintaining, and advertising businesses.
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Key Takeaway

India has the third-largest startup ecosystem globally, thanks to startup business incubators and accelerators. These programs are essential because they give startups and developing companies the resources and support they need. These programs, which provide networks, funding, training, and mentorship, can greatly improve your chances of success regardless of whether you select an incubator or an accelerator.

When choosing which course to take as an entrepreneur, it’s critical to consider your company’s growth objectives, unique needs, and current state of development. Financial support and stability lead to better returns for any startup. If you are an entrepreneur and looking for sound financial support, contact Indifi for a business loan and improve your business profitability.


  1. How do business incubators assist new companies?

An incubator assists a startup in developing from an early-stage concept into a self-sufficient business. Incubators offer a range of services, such as office space, administrative support, mentorship and education, capital and investor access, and idea generation.

  1. How do accelerators support new businesses?

A startup accelerator is an equity-based program run by mentors that offers advice, assistance, and small amounts of funding. Around the world, hundreds of accelerators have played a crucial role in supporting the funding of significant startups.

  1. What advantages do accelerators and incubators offer?

Incubators provide office space and mentorship in a caring and encouraging environment that helps businesses grow. Accelerator programs, on the other hand, provide financial support and potential investor exposure to help companies grow.

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