In the field of social impact entrepreneurship, incubators, and accelerators play a critical role. Without them, countless innovative ideas to solve sustainable development challenges would remain just that — ideas without tangible impact.
Many entrepreneurs in the Global South who have channelled their passion and creativity into social-good startups wouldn’t be able to sustain or grow their businesses to improve lives at scale.
But we in the entrepreneur support sector have a confession: incubators need assistance too.
The challenges incubators face in supporting small and growing businesses and attracting impact investors are vast and deep:
- Sustainable funding is a constant concern.
Incubators need to chase resources for core support while at the same time trying to run multiple different revenue streams. Getting access to funders to build relationships is challenging, particularly without an aligned track record or the right mix of in-house skills and resources.
- It’s extremely difficult to recruit and keep talent
There is no clear training or path to learn the skill sets that the impact incubation industry needs. Most incubator staff are overworked and underpaid, particularly in comparison to mainstream corporate jobs. And many incubators are relatively flat organizations, offering limited growth opportunities for their staff when compared to the corporate sector.
- We need to ensure we’re delivering quality programming
Incubators from Accra to Kigali and from Mumbai to Jakarta recognize the opportunities they have to deliver their work better, and are asking similar questions:
- How do we ensure that entrepreneurs stay engaged and complete our programs, and don’t hop among incubators in search of funding?
- How do we engage with technical experts in a meaningful way?
- How do we create better connections and relationships with investors for our pipeline?
Arielle Molino of Pollinate Impact facilitates a small peer-led discussion of incubators and accelerators hosted in Accra, Ghana in September 2023.
As we reflect back on all that we heard from our conversations with ecosystem stakeholders as we are building the network, several issues crystalized as recommendations and resolutions we can carry into the new year for both incubators and funders who support them.
Identify Your Value Proposition
“Solve problems that people are willing to pay for”
A piece of advice that probably every incubator tells its entrepreneurs — and that every incubator also needs to take to heart. Determine what sets you apart in the marketplace of entrepreneur support organizations.
If incubators are able to define the specific type of entrepreneur they support and what benefits that entrepreneur will receive, we’ll begin to start seeing fewer hub-hoppers, more engaged entrepreneurs, and better strategic linkages between incubators and accelerators. And better articulated value propositions will also result in working with more aligned and strategic funders.
Stay True to the Cause
Once incubators have defined their niche in the market with a clear target group of entrepreneurs and strong benefits, stick to it! Don’t compromise what you do best for the sake of funding.
Mission drift is a very real challenge, and while it’s not the intention of funders to distract incubators from their core work, each incubator and accelerator is responsible for finding alignment with the right funders. If a particular project or RFP isn’t directly supporting your mission, your target entrepreneurs, or the services you offer, let it go. Be selective, stick with what works for you, and don’t compromise.
As we reflect back on all that we heard from our conversations with ecosystem stakeholders as we are building the network, several issues crystalized as recommendations and resolutions we can carry into the new year for both incubators and funders who support them.
Collaboration Gets Us Further Than Competition
All incubators are not created equal. Some are in more mature ecosystems than others; some have more experience than others; some target high-growth entrepreneurs, and others support lower-growth entrepreneurs. All of them add value to the ecosystem.
If there is a project that doesn’t align with your work, refer it to another organization that’s better aligned. If you need a complimentary skill set to go after that bigger bid, look for another incubator to bolster your own credentials. It will be a win-win for both organizations.
Attendees network during a Pollinate Impact workshop held in Accra, Ghana in September 2023.
For Funders
Blend Global Perspective with Local Solutions
In the Global South, there’s a lot of narrative around “decolonizing aid,” which I think could be simply summed up instead by “embracing trust.” Listen to the organizations who are on the ground, who know their constituents, and who know their markets.
Allow for cultural and contextual latitudes in the implementation of work, because though there are many connections across the Global South, each country, market, and city has its own distinctions. Achieving a balanced equilibrium between global standards and flexible, context-specific strategies is of paramount importance.
Support Incubators Strategically
Many incubators or accelerators may not know that they can ask for more than money. As a donor, the credibility and visibility that you can offer are often just as valuable as the money you’re giving them. It might be a speaking slot in a major conference, communications support to publish some key insights on their work or a positive reference to another funder.
And when it comes to impact measurement, try to co-create metrics that are mutually valuable and not overly burdensome. For example, try to align with metrics that the incubator or accelerator is already tracking to understand their value and progress in the market.
Support Sustainability Strategies
Acknowledge the power-play that you have as a funder or donor in this space. Incubators are responding to the market dynamics that are shaped not only by entrepreneurs, but also by funders’ programmatic and project-based approaches.
Short-term programmatic funding creates a small burst of activity rather than a systemic change in these markets. Ultimately these organizations need long-term support — coupled with the flexibility to experiment — to establish equally long-term relationships with entrepreneurs, and ultimately to move the needle of entrepreneurship in the right direction.
Attendees network during a Pollinate Impact workshop held in Accra, Ghana in September 2023.
Pollinate Impact will be working in the next year to address some of these key issues, and to provide a forum for incubators to discuss and act on other challenges. Our New Year’s resolution is nothing less than transforming the impact incubation industry to deliver solutions to our biggest challenges at scale and sustainably.
Learn how to get involved with our network here to help make 2024 a year of growth and success for all social impact entrepreneurs — and their incubators too! Also, consider joining our member-led network and learn how you can contribute to finding solutions.
Arielle Molino
Arielle Molino is the Chief Convener of Pollinate Impact. She has 15 years of experience in impact investing, social entrepreneurship, and non-profit sectors in Africa, India, and the United States.
