The role of business accelerators in generating dynamic capabilities within startups

Abstract

Business accelerators provide entrepreneurs with a combination of capital and specific support resources to help them grow rapidly and scale their business idea.Despite their rapid emergence as key role players in the entrepreneurial ecosystem, research is still scant about their impact in new venture development.This paper examines the effects of business accelerators from the dynamic capabilities' perspective.Specifically, a qualitative and descriptive analysis of Y combinator's business accelerator methodology has been conducted.The analysis shows how Y combinator contributes to the generation of dynamic capabilities in companies, through the implementation of specific actions and resources embedded in its business acceleration program.Our findings reveal that business accelerators stimulate dynamic capabilities of portfolio firms.It can help them gain competitive advantage and superior performance in the market compared to companies that do not participate in an acceleration program.

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