You can't always get what you want: How entrepreneur's perceived resource needs affect the incubator's assertiveness

Abstract

A possible explanation for the disappointing performance of incubators is that start-ups do not take full advantage of the resources offered by the incubator. In explaining the low usage of the incubator's resources, existing studies neglect that incubated entrepreneurs may not be aware of the gaps in their resource base. Using qualitative data from six European incubators, we identify start-ups' resource needs as perceived by incubator staff and by entrepreneurs. Further, we explore the implications of differences in perceptions for the incubator's assertiveness. We find that entrepreneurs are unable to use the incubator's resources to develop missing 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 startups were found to take an assertive strategy, creating self-awareness among entrepreneurs, and encouraging them to make use of the incubator's resources. Our study adds to current incubator literature by providing a more comprehensive explanation for the low usage of the incubator's resources, by identifying circumstances under which an assertive strategy is desirable and by exploring the practices through which an assertive strategy can be implemented.