How Business Accelerators Can Help New Startups Succeed After COVID-1
The world of work has been completely affected by the global virus pandemic. Covid-19- the pandemic which triggered one of the worst job crises since the great depression resulted in the loss of approx. 225 million jobs around the world.
The people that were particularly affected by the industries block due to the restrictions caused by the pandemic were the younger people. As many businesses did not sustain, unemployment hit hard and people tend to push themselves more into entrepreneurship.
To survive and thrive after the pandemic these entrepreneurs needed support. So, the question that arises is how these entrepreneurs and their new ventures are supported and the clear answer is Business accelerators.
WHAT ARE BUSINESS ACCELERATORS?
Also identified as seed accelerators or accelerator programs, serves as a mechanism to support and grow new ventures. Business accelerators support early-stage and startup businesses through investment, short-term mentoring, and training. Though they differ from business incubators in many ways, hybrid and evolving business acceleration models grow on trees.
Business accelerators are becoming progressively popular in the startup world with more than 3,000 accelerators worldwide. Accelerators often hold equity in their client’s firms and are generally for profit. They use a cohort-based, time-limited approach to focus on accelerating the growth of selected technology-based startups from a broad range of industries.
HOW CAN THEY HELP STARTUPs?
Covid-19 has threatened business survival the most which means starting a new venture is more challenging. Funding might become more risk-averse for investors and scarce. That said, new opportunities are emerging from covid-19 for young, new, and innovative entrepreneurs. Here comes the role of the accelerators that provide model support to startups during and after the pandemic.
· A three-step approach to deal with Covid-19 by the organization for economic cooperation and development applies to accelerators.
· Accelerators managers support government efforts to spur rapid growth and recovery.
· Accelerators ensure the sustainability and performance of these new firms to secure the funding.
· Accelerators also put more emphasis on seeking new international partnerships to reduce costs, access new funding, and create synergies.
·Accelerators moving online and staff working remotely helped in a lot of things like saving time, and facilitating more introductions among investors, founders and mentors.
· The pandemic has provided an opportunity to revamp the services accelerators offer.
· New programs tailored for women entrepreneurs might be developed because more women lost their jobs than men during the pandemic, and more women entrepreneurs were affected.