You Can't Always Get What You Want: How Entrepreneur's Perceived Resource Needs Affect the Incubator's Assertiveness

A possible explanation for the disappointing performance of incubators is that start-up do not take full advantage of the resources offered by the incubator. However, existing studies have largely overlooked that incubated... [ view full abstract ]

A possible explanation for the disappointing performance of incubators is that start-up do not take full advantage of the resources offered by the incubator. However, existing studies have largely overlooked that incubated entrepreneurs may not be aware of the gaps in their resource base. Using 66 interviews conducted at six European university affiliated incubators, we identify start-ups’ resource needs as perceived by incubator staff and by entrepreneurs, and we explore how differences between perceptions affect the incubator’s assertiveness. We show that entrepreneurs are unable to use the incubator’s resources to develop necessary intangible resources: entrepreneurs are not aware of their resource gaps, hesitant to step out of their comfort zone, and primarily short-term oriented. In order to ensure that start-ups develop a comprehensive resource base, incubators supporting early stage start-ups were found to take an assertive strategy, creating self-awareness among entrepreneurs, and encouraging or forcing them to make use of the incubator’s resources. Our study adds to current incubator literature by providing additional explanations for the low usage of the incubator’s resources, and by identifying circumstances under which an assertive strategy is desirable. We also identify the practices through which an assertive strategy can be implemented.