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The Support of Incubator and Accelerator Programs in the Entrepreneurial Ecosystem with COVID-19

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The Support of Incubator and Accelerator Programs in the Entrepreneurial Ecosystem with COVID-19 DEGREE PROJECT IN INDUSTRIAL MANAGEMENT, SECOND CYCLE, 15 CREDITS STOCKHOLM, SWEDEN 2021 The Support of Incubator and Accelerator Programs in the Entrepreneurial Ecosystem with COVID-19 A Collective Case Study for Germany LEONIE MAURER FREDERIK NAGEL KTH ROYAL INSTITUTE OF TECHNOLOGY SCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT The Support of Incubator and Accelerator Programs in the Entrepreneurial Ecosystem with COVID-19 A Collective Case Study for Germany by Leonie Maurer Frederik Nagel Acknowledgements We would like to thank everyone who has been involved in the creation of this thesis paper. The support has helped us to get a deep understanding of the ecosystem surrounding incubator and accelerator programs. With the guidance throughout the whole process of the paper, we have successfully created a thorough research about incubators and accelerators in the entrepreneurial ecosystem impacted by COVID-19 in Germany. Thanks to Kristina Nyström for her support during the thesis process as well as the interviewees from the incubators, accelerator and startups that gave us valuable information for conducting this research. Master of Science Thesis TRITA-ITM-EX 2021:137 The Support of Incubator and Accelerator Programs in the Entrepreneurial Ecosystem with COVID-19 A Collective Case Study for Germany Leonie Maurer Frederik Nagel Approved Examiner Supervisor 2021-06-11 Terrence Brown Kristina Nyström Commissioner Contact person n/a n/a Abstract The aim of this thesis paper is to analyse the support of incubator and accelerator programs in the German entrepreneurial ecosystem with the impact of COVID-19. Incubator and accelerator programs have been established across multiple innovation hubs worldwide over the last decade. They have become a substantial support system for entrepreneurship providing help for young companies to innovate. The benefits offered usually include access to capital, network, mentorship and office space in exchange for equity or to simply foster innovation. With a lot of uncertainties deriving from the current pandemic, entrepreneurship has an increasingly relevant role to ensure a flourishing economy in the future. As the world is adapting to new circumstances, incubators and accelerators need to reevaluate their support to startups as well. The literature review consists of relevant literature by elaborating on the existing entrepreneurial ecosystem theories. It further discusses incubators and accelerators and the German entrepreneurial market before introducing the theoretical framework for the paper. As part of the research, this thesis uses a collective case study method by conducting interviews with startup founders and employees of incubator and accelerator programs in Germany. The qualitative data collection will undergo a deductive reasoning approach to analyse the research phenomenon and to contribute to the field of entrepreneurship. After introducing each company from the collective case study, the empirical findings systematically lay out the data from the interviews by separating the data into a section for incubators and accelerators and a section for startups. The data highlights relevant changes regarding the support of the programs with and without the impact of COVID-19. The discussion chapter points out the findings by comparing the data with the literature and the theoretical framework. The findings are broken down into subsections that point out the importance of the support programs as well as the proposed changes in the offerings. Concluded, changes can be made in the area of mentorships and coachings as there is a need for more individuality. Also regular feedback cycles, a higher capital support and the change to a hybrid model with a remote and on-site structure as well as the use of software to stay connected are possibilities for accelerators and incubators to help the startups. Keywords: Incubator, Accelerator, COVID-19, Support System, Entrepreneurial Ecosystem Examensarbete TRITA-ITM-EX 2021:137 Stöd till inkubator- och accelerationsprogram i det enterpenörella ekosystemet med COVID-19 En kollektiv fallstudie för Tyskland Leonie Maurer Frederik Nagel Godkänt Examinator Handledare 2021-06-11 Terrence Brown Kristina Nyström Uppdragsgivare Kontaktperson n/a n/a Sammanfattning Syftet med denna uppsats är att analysera stödet av inkubator och accelerationsprogram i det tyska enterepenörella ekosystemet och hur det påverkats av COVID-19. Inkubator och acceleratorprogrammen har etablerats under olika innovationscenter över hela världen det senaste decenniet. De har blivit ett betydande stödsystem för entrepenörskap som ska ge stöttning åt nystartade företag för att hjälpa dom bli innovativa. Förmånerna är tillgång till kapital, nätverk, mentorsskap och lokaler, detta sker i utbyte mot delägarskap eller att bidra till att främja innovation. Med osäkerheten orsakat av den nuvarande pandemin, har entrepenörskap en mycket viktig roll för att säkerställa en uppåtgående ekonomi i framtiden. Då världen anpassar sig till nya omständigheter, behöver inkubationer och accelerationer se över stödet till startup företag. Litteraturöversikten innehåller relevant litteratur som utarbetar de redan existerande teorier inom det entrepenörella ekosystemet.. Vidare diskuteras inkubatorer och accelerationer och den tyska entrepönerella marknaden, följt av introduktionen av det teoretiska ramverket för uppsatsen. Som en del av forskningen används en kollektivt fallstudie metod där det genomförts intervjuer med start up grundare och anställda på inkubator och accelerator program i Tyskland. Den kvalitativa inhämtningen av data genomgår ett slutligt resonemang för att analysera forskningsfenomenet och bidra till forskningsområdet entrepenörskap. Efter att ha introducerat varje företag för den utvalda fallstudien, visas data systematisk med de empiriska resultaten från intervjuerna. Detta görs igenom att separera data i två sektioner. En för inkubatorer och accelationer, och en sektion för start ups. Uppgifterna belyser relevanta förändringar när det gäller stödet till programmen med och utan inverkan av COVID-19. I diskussionskapitlet pekas resultaten ut genom att uppgifterna jämförs med litteraturen och den teoretiska ramen. Resultaten delas upp i underavsnitt som pekar ut stödprogrammens betydelse samt de föreslagna förändringarna i utbudet. Slutsatsen är att förändringar kan göras inom området mentorskap och coachning eftersom det finns ett behov av mer individualitet. Regelbundna feedbackcykler, ett högre kapitalstöd och en övergång till en hybridmodell med en struktur på distans och på plats samt användning av programvara för att hålla kontakten är möjligheter för acceleratorer och inkubatorer att hjälpa nystartade företag. Nyckelord: Inkubator, accelerator, COVID-19, stödsystem, enterpenörellt ekosystem Table of Contents List of Figures .......................................................................................................................... III List of Tables ........................................................................................................................... IV List of Abbreviations ................................................................................................................ V 1 Introduction ........................................................................................................................ 1 1.1 Background ................................................................................................................. 1 1.2 Problem Statement ...................................................................................................... 2 1.3 Purpose and Research Question .................................................................................. 2 1.4 Delimitations ............................................................................................................... 3 1.5 Sustainability Aspects ................................................................................................. 3 1.6 Contribution to the Field of Entrepreneurship ............................................................ 4 1.7 Outline ......................................................................................................................... 5 2 Literature Review ............................................................................................................... 6 2.1 Entrepreneurial Ecosystem .......................................................................................... 6 2.1.1 The First Definitions .......................................................................................... 6 2.1.2 Three relevant Entrepreneurial Ecosystems ....................................................... 7 2.2 Incubators and Accelerators ...................................................................................... 11 2.2.1 Definition ......................................................................................................... 11 2.2.2 Distinction ........................................................................................................ 11 2.3 The German Entrepreneurial Market ........................................................................ 12 2.4 The COVID-19 Impact on German Startups ............................................................. 13 2.5 Theoretical Framework ............................................................................................. 15 3 Methodology ....................................................................................................................
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