Nurturing the Entrepreneurial Spirit

Entrepreneurship continues to spark economic growth in markets around the country. By increasing numbers, startups and fledgling entrepreneurs are moving away from crowded coffee houses and dining room tables, and into business incubators, accelerators and collaborative coworking environments. Although sometimes thought of as interchangeable, these categories vary widely and there are clear differences among the three.

Incubators, accelerators and coworking communities are similar in that each provides office space, a wealth of networking opportunities and business support services in varying degrees. All three also may provide some hands-on assistance in different formats. Business experts likely would agree that the key question for entrepreneurs to ask themselves is, "What do I need?" Once that is flushed out, he or she can decide whether an incubator, accelerator or coworking space is the ideal fit.

All Benefit From Coworking's Organic Exchange of Knowledge and Ideas
In a world in which more people find themselves trying to build businesses on their own, coworking environments provide not only an office space, but a vibrant community where people find the help, advice and tools they need to grow professionally and personally. The atmosphere eliminates the isolation of working alone and fosters a sense of cooperation rather than competition. The setting is not just for early-stage companies; workers from a variety of business backgrounds all benefit from the setting's organic exchange of knowledge and ideas.

Membership in coworking spaces requires no upfront investment and there are no monthly leases, utility bills or costs associated with buying office equipment. Amenities typically include Internet connectivity; phone service; and access to printing, copying, scanning and faxing capabilities. The shared office environment is a particularly healthy place for a solo startup or small team to thrive. People forge friendships and want to see each other succeed, which is one of the most valued aspects to a coworking space.

Incubators Offer Professional Services and Coaching
Meanwhile, business incubators serve to "accelerate" the successful development of entrepreneurial companies by providing support resources and services. According to the National Business Incubation Association (NBIA), incubators nurture the development of entrepreneurial companies by helping them survive and grow during the start-up period. Generally, businesses pay a monthly fee to participate, and incubators usually have a specific industry focus (tech or retail, for instance).

Incubators keep overhead costs low and improve the odds of start-up success by offering resources such as office space, access to professional services such as accountants and attorneys, and coaching and networking connections through staff and other incubator entrepreneurs. Entrepreneurs can build a network with both the host company and other peer businesses that are participating.

Accelerators Differ by Providing Seed Funding
Program-based and time-specific, accelerators may fundamentally be different, but still strive to achieve the same overall goal of helping startups improve the odds of success. Most typically, accelerators offer highly selective and intensive programs, taking an average of three to four months. The essential difference is that accelerators provide seed funding: If an entrepreneur is accepted, he or she will receive early-stage funding in exchange for an equity stake in the startup.

Entrepreneurship represents the "American dream" as we know it today. Start-ups, freelancers and young businesses all have access to a myriad of resources to support them and foster success. It's up to each person to choose the option that best aligns with his or her long-term goals.