UK urged to set standards for startup accelerators

A report released today from the UK think tank for entrepreneurship policy, Entrepreneurs Network, urges the UK Government to establish clear programme standards and classifications for startup support schemes, such as accelerators and incubators. 

The UK now hosts over 500 accelerator programmes with £219 million in investment since 2016 through Innovate UK alone. In the absence of clear standards or shared definitions, entrepreneurs can struggle to navigate the support ecosystem and identify which programme will genuinely help their venture. 

Further, the report highlights the regional disparity of accelerators, which largely mirrors the UK’s broader economic geography. Nationally, only 57 per cent of listed incubators or accelerators are active, while 33 per cent have closed, and 10 per cent are in a state of limbo, according to Beauhurst data cited in the report. The rapidly changing accelerator landscape creates a sense of instability and lack of trust among founders.

Based on interviews with industry experts with a track record of creating and running incubator and accelerator programmes, as well as founders who have gone through them, the report Full Speed Ahead — The Entrepreneurs Network addresses a growing concern around the UK’s ability to scale ‘breakthrough businesses’ from the early-stage to their full potential. 

While Britain boasts the ‘world’s most heavily incubated economy per capita’, its startup support system suffers from patchy impact, poor coordination, and insufficient accountability. 

The think tank also calls for shifting success measurements toward long-term entrepreneurial development and enhancing founder outcomes, rather than just focusing on short-term activity. 

The report outlines four reforms that the UK should implement to better leverage these programmes to drive innovation and entrepreneurship: 

The recommendations include:

• Establish standards and classification: Create a taxonomy and accreditation scheme for all startup support programmes, with public funding contingent on meeting minimum standards.
• Reform impact measurement: Adopt dual-track metrics that capture both company performance and the development of entrepreneurs.
• Sustainable funding models: Replace short-term, one-off grants with 3-5-year outcome-linked contracts, supported by rolling reviews and bridging finance.
• Drive market-led quality improvement: Pilot demand-led funding vouchers redeemable with accredited providers.

Philip Salter, Founder of The Entrepreneurs Network, said: 

“The UK has plenty of startup support programmes, but we don’t always know if they actually work. Founders can’t even be sure these programmes will still exist before they finish. We need reforms that make programme outcomes transparent and reward schemes that create lasting impact.”

Steve Rigby, Co-CEO of Rigby Group, said: 

“We devote vast effort to helping new ventures take their first breath, but far less to ensuring they grow, export and endure. This timely and insightful report lays the groundwork for a smarter, more strategic approach.

If we want the UK to generate the next generation of global businesses, we must act now and with purpose.”

Lead image: Freepik.