David Cummings on Startups

Does Providing Entrepreneurs with Accelerators and Office Space Help or Hurt?

Written by

David Cummings

in

,

One of the questions I’ve heard several times about the Atlanta Tech Village and the Atlanta Ventures Accelerator is “does coddling entrepreneurs with an accelerator program and office space make things too easy?” Part of the question stems from the historical rite of passage entrepreneurs had to go through spending dozens of hours on office space, furniture, and internet access combined with the effort to find a community of like-minded entrepreneurs, educational programs, and screened mentors.

On the positive side, it’s clear that the instant community and physical infrastructure adds tremendous value. Entrepreneurs get to focus their time and energy on building their company with minimal administrative overhead, can walk down the hall to get expert feedback on an issue, and gain a serious edge when recruiting talent.

On the negative side, there’s an increased chance that entrepreneurs who aren’t as motivated and resourceful will be able to coast in an environment that is fun and feels great without making any substantial progress. Yes, that can happen anywhere, but the support and community in a high density startup cluster softens the frustration of not having startup success as the human desire to be a part of tribe is being met.

Overall, having a great startup center with a cohort of entrepreneurs significantly outweighs the downside of things being too cushy and some entrepreneurs just coasting.

What else? What are your thoughts on whether or not providing entrepreneurs with accelerators and office space helps or hurts?

Comments

6 responses to “Does Providing Entrepreneurs with Accelerators and Office Space Help or Hurt?”

  1. Thomas Paz Avatar
    Thomas Paz

    I think there is also a level of accountability being around like-minded entrepreneurs.

    Reply
  2. teefus Avatar
    teefus

    It’s all about the culture you set at ATV. If the culture is one where “coasters” are shunned, frowned upon, not included as “one of the gang” or “part of the tribe” , you will have created the same kind of positive peer pressure one finds in the Marine Corps or naval aviation (my background). Speaking
    from that perspective, I know what a powerful motivator that can be – and it is just as applicable in a civilian setting like an entrepreneurial startup cluster.

    Kudos for removing the barriers to success while providing the culture of excellence and accomplishment that positively pressures the tribe of entrepreneurs at ATV.

    Reply
  3. Ian Avatar
    Ian

    Simply knowing about the AVA is motivating to us entrepreneurs. And it’s about more than facilities or funding.
    It’s access!
    It’s education!
    It’s exercise!
    It’s more than we could ask for and that is good for Atlanta.

    Reply
  4. Tim Boeckmann Avatar
    Tim Boeckmann

    A very thought-provoking article. I run Seederboard.com over in the London. We work with companies who already have investment, but spend a lot of time talking with accelerators and startups without funding.

    What we see over here is that companies who intend to or have already raised finance are often the ones applying to the accelerators. Naturally, those accelerators (Oxygen, Seedcamp, Techstars etc) have a good vetting process and take startups who have a viable idea and signs of already making progress.

    Often, startups who are bootstrapping and “going it alone” tend not to want the kind of help the accelerator might offer. They chart their course and continue to build their business using their own resources. For the startups who have signs of success, this seems to be a conscious choice.

    For startups who are part of an accelerator, aside from the benefits you mention above, there is a major advantage for those facing failure (all too common at this stage of the game). Instead of having office leases, numerous contracts, office equipment and all the other elements that a standalone business must commit to, accelerated startups benefit from reduced responsibility and stress. They are able to change direction, operate with agility or even cease to operate with a smaller impact on their founders and suppliers. When running a business in the early stage economy, ensuring it is really going to grow and reach its goals is much more important than laying down the foundations that slow businesses down.

    Equally, being part of a community of like minded people at similar stages can really help relieve such high levels of stress that startup founders often experience.

    We fully support the efforts of accelerators globally to help get smart idea-driven companies off the ground.

    Reply
  5. Jason Avatar
    Jason

    ATV is like a top-tier high-school that will greatly increase the chances of a student to get into the university of his dreams. But the underlying condition is that the student must have the passion to succeed. ATV’s culture must encourage and nurture those who have the passion, and discourage those who do not. Being nice to those who do not have the passion by allowing them coast for too long can be demotivating to those who are driven to succeed.

    I came from a very humble beginning in a developing country (no electric power for the first 16 years of my life, no libraries, no internet, no phones, no cars), but through hard work, ambition and unquenchable thirst for knowledge, I made it to America and now a senior manager in a big tech company in Atlanta. I attribute my relative success to hard work and unquenchable thirst for knowledge. I did not go to a great high-school that could have propelled me to the moon. If I did, I really believe I could have reached not only the moon but the brightest stars. Atlanta entrepreneurs who have the passion to succeed are fortunate to be in Atlanta and to have the Atlanta Tech Village around. David, best of luck on all your endeavors.

    Reply
  6. jonbirdsong180345500 Avatar
    jonbirdsong180345500

    Keeping an entrepreneur focused on team, customers, and product is a great objective for any accelerator or investor.

    Reply

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More posts