Business Incubators vs. Accelerators: What’s the Difference?

Growing a business is challenging and having the right support network can make all the difference. That’s where business incubators and accelerators come in. These programmes provide access to mentorship, funding, advice and resources, giving you the tools and knowledge to scale faster and smarter. 

Depending on where you are in your journey, either an incubator or accelerator may be right for you. In this article, Katherine Megson, our Head of Innovation and Growth, explains the key differences and what to expect from each.

What is a Business Incubator? 

Business incubators create a supportive space for early-stage startups to overcome the challenges of getting off the ground. Many incubators have no fixed time frame, but those with time frames tend to be longer than those of accelerators. This extended time allowance gives entrepreneurs the freedom to shape their ideas and define their direction at their own pace.

Incubators often accept entrepreneurs with a concept or early prototype, with the aim of developing a market-viable product (MVP). 

What Support do Business Incubators Offer?

Incubators are designed to help startups find their footing, often supporting founders in shaping their ideas and business goals. They provide access to workspace, mentorship, investor networks, workshops and professional services, typically at reduced rates. Incubators usually provide support without taking equity, focusing on nurturing early-stage ideas, whereas accelerators often invest in startups, taking equity stakes to align interests and drive rapid growth.

This stage is about testing, refining and building confidence in the market fit of a product or service.  In our Tech Incubator at Circle Square and at Platform in Leeds, we provide the space, support, and connections that early-stage businesses need to grow with purpose.

What is an Accelerator Programme?

Accelerators support early-stage businesses with a minimum viable product, ready to scale. More advanced than typical incubator-stage startups, these companies benefit from focused, time-limited programmes designed to drive rapid growth and deliver a return on investment. As mentioned, accelerators will often take equity in exchange for their support. 

Accelerators usually require a dedicated team with some form of market validation before accepting. The focus here is to scale operations, secure funding and expand market presence. 

What Support do Business Accelerators Offer?

Accelerators are geared towards businesses with a proven product or service and a clear market fit. Entry is competitive, with programmes typically lasting three to six months and offering investment, mentoring, growth support and workspace in exchange for equity.

This stage focuses on rapid, strategic growth, helping founders scale quickly and avoid common pitfalls. At Bruntwood SciTech, our innovation accelerator programmes at locations like Innovation Birmingham and Alderley Park provide premium lab space, expert support and tailored services for scaling life sciences and tech businesses. While London remains a central hub, the expansion of incubators and accelerators across the UK ensures that startups nationwide can access vital resources and support.

Business Incubator vs. Accelerator: What’s Best for Your Business?

Incubators and accelerators can play a pivotal role in helping startups and young businesses succeed. These programmes contribute to vibrant startup ecosystems by hosting events, fostering collaborations, encouraging knowledge exchange among entrepreneurs and connecting you to the right people who can help you grow. 

Specific types of incubators and accelerators are becoming more prevalent, with sector-specific programmes offering specialised support, tailored to the unique challenges of industries such as biotech, fintech and the creative economy. Innovative hybrid and virtual programs are emerging too, blending the long-term support of incubators with the intensive growth focus of accelerators, and providing remote access to resources and mentorship.

If you’re still shaping your idea and business model, an incubator offers long-term support to help you build strong foundations. If your business is further along, with a product, traction and plans to scale, an accelerator provides focused, intensive support to help you grow fast. To help simplify things, the bullet points below provide some pointers: 

Incubator:

• Made for businesses in early stages/ideation

• Flexible programmes, often long-term

• Funds include grants and non-dilutive funding, with no equity taken

• Focus is on product development and model refinement

• Not strictly structured, provides ongoing support for businesses

Accelerator:

• Made for businesses with an MVP with market traction

• Fixed-term programmes, usually 3-6 months

• Seed investments provided, some equity (5-10%) taken from the business 

• Focus is on rapid scaling and market expansion

• Structure features cohort-based, intensive programmes

Whichever stage you’re at, Bruntwood SciTech’s business support programmes are here to help you unlock your potential.