Although the number of incubators, accelerators, co-working spaces and science parks is rapidly increasing around the world, little attention has been paid to the start-up communities that these initiatives create. Based on a case study in three cities in Australia, a country that has seen a rapid growth in entrepreneurial activity, three Startup-insights affiliated researchers from Utrecht University found communities to create legitimacy, and to attract new stakeholders. The communities provide entrepreneurs with an inspiring environment, a shared sense of belonging, encouragement and ambition. For start-ups, the community is a source of both tangible and intangible resources.
However, being in these communities doesn’t come without the risks, as it can be difficult for entrepreneurs to stay focused, maintain a work-life balance, protect the start-up’s IP, and create a unique company culture. The benefits and risks associated with the community were found to be conditional to the community’s size and diversity. The study found incubators and co-working spaces to influence these conditions, by introducing communitymanagers and selection processes, thereby creating optimal circumstances for start-up communities to prosper.
Read the paper by means of clicking the link below.