Examining Start-up Development Organisations: Key Characteristics and Resources

Abstract

Start-up companies have long been considered an important foundation for stimulating the development of novel technologies and providing a significant base of employment to the workforce of many western economies. However, difficulties faced by start-ups has led many of them to approach third party companies that will aid in the development of their start-up through the early, more turbulent years. Historically termed business incubators, companies which provide workspace and services to startups to aid in their growth, the industry surrounding the development of start-ups has undergone a significant shift over the last few decades leaving an ecosystem where the incubator model has become poorly understood and confused. The emergence of newer models, such as accelerators, has left a significant amount of the literature outdated and as such this thesis seeks to elucidate the industry surrounding these companies which facilitate the development of start-up companies. Collectively termed start-up development organisations (SDO’s) this thesis seeks to examine these companies in a more collective light, illuminating the different practices which they undertake, ultimately defining a set of categories into which they can be better organised and understood. The study design incorporates a multi-method approach utilising a series of semi-structured interviews as well as extensive secondary research to identify basic business characteristics and resource offerings that constitute the disparate business models of start-up developers. The participants consisted of both experienced individuals from SDO type companies as well as individuals with significant experience in the start-up industry. The results of the interviews and secondary data were then analysed via triangulation of the two datasets to determine recurrent themes of practice within each business and Identify a series of criteria that allow for delineation between separate models of practice. Through a robust examination of the various practices of SDO companies six separate categories were identified: incubators, co-working spaces (plus), accelerators, corporate sponsored accelerators and university business incubators. A resource-based view was then adopted to examine the importance of these various resource offerings and gain a deeper insight into why managers of SDO companies view particular resources as important to the development of start-up companies.