Untangling the Benefits of Business Accelerators: Experimental Evidence on What Works and for Whom

Abstract

Despite the widespread adoption of business accelerators, a fundamental question remains unresolved: what type of support is most effective for different types of entrepreneurs? While most accelerators offer training, mentorship, and access to networks and investors, their core focus varies—some emphasize managerial capital (skills for operational efficiency), while others prioritize entrepreneurial capital (capabilities for opportunity recognition and network expansion). This paper presents the first randomized controlled trial to rigorously compare the effectiveness of these distinct approaches among opportunity-driven entrepreneurs. The findings challenge the conventional one-size-fits-all model. For the average participant, managerial capital training led to more efficient business operations, better management practices, and 18% faster growth relative to those receiving entrepreneurial capital training. In contrast, among high-growth-potential entrepreneurs, entrepreneurial capital training unlocked exceptional outcomes—43% faster growth and greater job creation. Leveraging regional variation in program access, we also compare similar entrepreneurs with and without support, highlighting that the program’s average impact is driven primarily by those who received managerial training. These results underscore the critical importance of targeting: accelerators could significantly increase their effectiveness by tailoring support based on the entrepreneurial potential of participants.