Rural Businesses Case Study Accelerator
Rural Businesses Case Study Accelerator
Working Document
September 2017
Abstract
This case study provides practical lessons from rural business accelerator programme examples from all over
Europe: AgriEnt (in Greece), the Masterclass (in the Netherlands) and the Academy on Tour (in Belgium)* to
answer questions such as: 'What is a rural business accelerator?'; 'How can it trigger business innovation?'; and
'What are the practical steps for setting up and running an accelerator programme?'.
Accelerators are focused business support approaches that (i) run for a short period of time; (ii) focus on a
small number of entrepreneurs with strong innovation potential or motivation to be innovative; (iii) use
networking and peer-to-peer exchange widely (bringing together businesses, advisory, research, etc.); (iv)
involve inspiring and innovative ways of supporting businesses; and (v) provide integrated business support
(from emerging business ideas to starting up the business).
As such, accelerators generate local economic development (e.g. through creating new revenue streams for
enterprises), it increase the capacity and self-confidence of rural entrepreneurs and improve local networks (of
entrepreneurs, researchers, municipalities, etc.).
* See detailed description of the three case examples. Special thanks to Thematic Group members Patrick Pasgang
(Academy on Tour), Panos Madesis and Mara Tsoumari (AgriEnt) and Jan Willem van der Schans (Wageningen Economic
Research).
The case study on rural business accelerators is structured as follows:
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1. What is an accelerator?
Business accelerators aim to speed up (accelerate) the Accelerator approaches build on:
development of innovative business ideas into viable
✓ Process of inspiration
business projects for both start-ups and existing
✓ Peer-learning
businesses.
✓ Networking and participative
The accelerator approach has important differences to business development
traditional business support (see table below).
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2. How can accelerators help improving rural areas & businesses?
Business innovation is key for allowing rural businesses to seize emerging opportunities and overcome
new challenges and threats (such as responding to climate change, digitisation, new customer
demands, maintaining biodiversity)1. However, the innovation potential of rural businesses is often
less developed compared to those located in urban environments, mostly due to:
• weaknesses in entrepreneurial capacities, technical knowledge and appropriate capacity-
building initiatives;
• structural factors, such as the lack of economies of scale and agglomeration economies,
physical distance, and a lack of clustering advantages (e.g. limited face-to-face interactions);
• bottlenecks in the rural business ecosystems (e.g. access to finance or broadband).
The accelerator approach aims to provide a response to these challenges. In particular, it focuses on
appropriate and flexible assistance to support entrepreneurs in turning innovative business ideas to
viable businesses (including creating opportunity for face-to-face interaction). One of the main
challenges is to adapt accelerator approaches (that are often designed for urban areas/enterprises) to
rural conditions.
1
See ENRD Thematic Group Event’s Summary No 2 (30 Nov 2016): ‘Rural Businesses in 2030’ (the vision of
thematic group members) or EU Rural Review 24 - ‘New opportunities for rural economies’.
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The Agricultural Business Accelerator (Greece)
AgriEntrepreneurship (AgriEnt) aims at assisting teams of young people or companies in realising
promising innovative business ideas in post-crisis rural Greece by setting up new enterprises or
diversifying existing companies in agri-food, agro/bio-technology, agri-tourism and rural
development.
The acceleration process was conducted by an NGO, set up for organising the acceleration process. A
series of 15 weekend meetings were organised, where mentors, coaches and experts helped the
teams, through acquiring entrepreneurial skills and peer-to-peer learning. The main objectives of the
meetings were to assess and optimise business ideas, tackle specific problems identified, foster the
setting up of an enterprise if not already established, benefit from networking opportunities in the
market and access suitable finance.
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4. What is the main added value and results?
Accelerator programmes bring many benefits to rural businesses and rural areas (see graph below).
• Half of the innovative ideas presented at the Academy on Tour (on average 6 ideas
/ trip) reached a test phase, and roughly half of these reached the market. Among
others the Academy contributed to new food products (e.g. self-grown saffron) ✓ New revenue
and access to new markets & customers. streams of
• New business activities created by the Masterclass include new products (e.g. existing
quinoa production), improved processes (e.g. new packaging concept for pears) businesses and
and new brands developed (e.g. selling milk from each cow separately). creating new
• AgriEnt led to participating teams moving to a next level of developing their businesses
businesses and changing their business models. Out of the 12 teams 8 set up a
new legal entity or scaled up existing business.
• The accelerator programmes improved client-orientation and marketing skills of businesses, and raised
their self-confidence leading to innovative entrepreneurship.
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5. Starting up an accelerator programme
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a) The initiators
The key stakeholders
behind the accelerator
programmes are: Who is behind the initiative?
• Municipalities ✓ The AgriEnt accelerator emerged from the AgriEnt community network,
(municipal leaders) which supports the initiative. It was initiated by three collaborators with
complementary expertise and experience in farming and agricultural
who have a new
development, in entrepreneurship and tech start-ups, networking and
development vision or
community development, and science, research and technology. The
would simply like to first cycle was supported by the Metropolitan Development Agency of
boost economy Thessaloniki through providing facilities.
through business
✓ The Masterclass was initiated by the Food Cluster of the Municipality of
development in their Rotterdam that had a new vision for the area; and it was conducted by
areas. Wageningen Economic Research (WEcR), the leading Dutch
• Advisory services that competence centre with specialist expertise on supporting enterprises
see a gap in available along the short food supply chain. Local municipalities interested in
business support. participation helped in the pre-selection and supported financially the
• Research institutions participation of farmers.
and/or universities ✓ The Academy on Tour was initiated by Innovatiesteunpunt, the Flemish
that bring specialist Innovation Support Centre for Agricultural and Rural Development,
knowledge and and was supported by Boerenbond (farmers’ association) and Landelijke
expertise to the Guilden (local associations of families and volunteers engaged in rural
programme. community and leisure activities).
• Farmers’ associations
(or other associations) that can help to mobilise participants (in case farm businesses are the main
targets of the programme).
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What are the main steps of setting up an accelerator programme?
The key preparatory steps for setting
up the accelerator approach were
identified as follows: Key steps of setting up the programme
✓ Decide the specific theme(s) to be ✓ The AgriEnt accelerator involved initial steps for
addressed based on needs institutionalising the partnership, planning the framework
of the programme based on the target audience’s needs,
✓ Form and institutionalise the
identifying relevant experts, raising awareness of the
partnership
programme, selecting participants and planning logistics.
✓ Develop an innovative and ✓ The Masterclass was set up in 3 steps: (1) awareness
engaging methodology raising, identification of specialist experts within and
✓ Find the right experts and set up outside of Wageningen Economic Research, planning of
the expert teams workshops and identification of participants; (2) securing
funding and identification of farmers hosting workshops;
✓ Organise logistics, including finding (3) detailed workshop planning based on participants’
the right venue needs.
✓ Inform about the programme ✓ The key steps in organising the Academy on Tour involved
(including through the networks) defining the specific theme, identifying the target country
✓ Identify and select participants and sites for the visits, finding inspirational examples,
and set goals together identifying participants, selecting experts, making logistics
(VIP bus) arrangements and time management.
✓ Develop time schedule
✓ Secure funding
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AgriEnt Academy on Tour Masterclass
Target group Start-up teams of farmers, Farmers and SMEs working Farmers, growers,
young entrepreneurs (or within or related to wholesale companies
companies) in agri-food, agriculture and
agro/bio-technology, agri- horticulture
tourism, and products or
services for rural areas.
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AgriEnt Academy on Tour Masterclass
3,000€ (one-day
Estimated total 8,500€* (organisation of 16,640€** (communications,
awareness events,
cost of preparatory first tour, logistics, organisation, fund-raising,
organisation, basic
work market research) design and planning)
logistics, without fees)
* The organisation of subsequent tours on the same topic is cheaper: €3,500
** Includes the contribution of Rotterdam municipal staff.
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6. Running an accelerator programme
When running an accelerator programme the following aspects need to be considered:
1. What are the right organisations to run the accelerator programme? – The main finding is that
specialist organisations (business advisory service and research) are most suited to run
accelerator programmes.
2. How to run the programme? – Including designing interactive methodologies, selecting the
right themes and follow-up activities.
3. What financial resources are needed to run the programme? – This will much depend on the
specific scope (number of participants, timeframe, etc.).
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AgriEnt Academy on Tour Masterclass
Working methods ✓ Expert and peer-advise ✓ Inspiration and motivation ✓ Working in small
matching with specific through visits and group / interactive
needs presenting business cases workshops
✓ Coaching and tailor- (films/ presentations) ✓ Getting inspired
made advice through ✓ Review and assessment of through study trips
specialist mentors ideas through coaching and and exchange
✓ Final pitch/ competition networking ✓ Mentoring and
✓ Follow-up guidance ✓ Advice on how to access coaching and expert
external knowhow and advise
finance ✓ Final pitch/
✓ Follow-up coaching competition
Time requirement 30+ working days One long day / tour 6 workshops
15 weekends and ad hoc 9 to 12 working days
sessions:
✓ 10 weekends (Stage 1,
12 teams)
✓ 4 weekends (Stage 2, 5
teams)
✓ 1 weekend (final boot
camp, 5 teams)
b) Focus of programmes
A common feature of the three accelerator approaches is that, independently from the thematic area
that they cover, they take businesses through the whole start-up process: starting from the
identification of needs and innovative ideas, to the presentation of a final pitch or new business plan /
model. In this sense, ‘acceleration’ means that the businesses receive ‘fast track’ support in all aspects
of business development.
Main ingredients of an accelerator programme
• Identifying the basic needs of participant entrepreneurs
• Presenting business ideas
• Helping to acquire basic entrepreneurial skills & understanding business models (through
mentoring & coaching),
• Providing inspiration to develop new or adjust existing business ideas (including visits, peer-
learning and networking)
• Business planning: setting the agenda (concrete steps) and schedule for becoming
operational (and adjusting the plan on the way)
• Sessions tailored to the specific needs of individual entrepreneurs
• Specific assistance to the most advanced entrepreneurs to operationalise their ideas (start
up the business)
• Match-making: identification of suitable business partners e.g. to access new markets
• Support preparing a final pitch or business plan and presenting at large-scale business
events
• Follow up coaching and activities
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The main emphasis of accelerator
programmes is on improving basic Thematic focus
business skills and/or provide business ✓ The Academy on Tour focused on themes such as product
planning tools, such as: development, business concept (Business Model Canvas),
village innovation, multifunctional agriculture, commercial
✓ business concept & planning (business
algae cultivation, short food supply chains.
model canvas2)
✓ The AgriEnt programme improved basic entrepreneurial
✓ SWOT and mission statement
skills (e.g. business model canvas, prototyping,
✓ diversification or quality of products or
identification of key resources and activities, marketing,
services, branding, e-business, communications, social media)
✓ customer relations or cooperation through tailor-made business support.
patterns,
✓ The Masterclass businesses had an interest in product,
✓ innovative ideas. concept and market development and diversification. The
Furthermore, programmes may focus on programme is not (only) targeting farmers and businesses
specific (sectoral) themes such as village that are currently leading in innovation but rather supports
those that are willing to innovate but need some help.
innovation, algae cultivation, short food
supply chains, etc.
c) Follow-up advisory services
Since accelerator approaches
are often implemented during a Follow-up activities
(relatively) short period, ✓ AgriEnt experts are still at disposal to the teams that participated in
ensuring follow-up can be the accelerator programme for answering questions, providing advice
particularly important. Follow- and guidance, and assisting in networking and access to finance.
up actions may include ✓ The Innovatiesteunpunt organises follow-up activities in three ways:
further coaching and networking support and opportunity to take
continuity in providing
part in the bi-annual ideas competition, inspiring and motivating
mentoring and coaching or
other innovative agri- and horticultural businesses or initiatives, and
linking with a suitable improving the approach and methodology of a tour.
development project funded ✓ The Masterclass does not organise follow-up support, but has made
from European, national or special efforts to connect participants to the RDP of the Province Zuid
regional sources. Holland to obtain funding for follow up work.
Continuous improvement of the
method and approach is also a key aspect of accelerators. For instance, the AgriEnt programme used
its first cycle of programme as a pilot and builds the second cycle on lessons learnt. The Academy on
Tour accelerator also continuously improves its methodology and approach based on participants’
feedback.
What financial resources are needed for running the accelerator programme?
a) Financial resources
The cost of running an accelerator programme will much depend on the scope of the programme (e.g.
whether field visits are included, or how long the programme runs) and the number of participants.
2
Business Model Canvas is a strategic management tool for developing new or documenting existing business
models. It is a visual chart with elements describing a business’ or product's value proposition infrastructure,
customers, and finances, in order to assist enterprises in aligning their activities by illustrating potential trade-
offs.
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Typically, accelerator programmes are not financed through single funds, but through different
funding resources (including public and private funding). During the initial phases, it is common to all
the approaches to use voluntary (pro-bono) or in-kind contributions to implement the programme.
Cost of running the accelerator programme
AgriEnt (GR) Academy on Tour (BE) Masterclass (NL)
3
Farmers and family enterprises in food often have to organise substitutes to do the work when they are away
from their farm/enterprise. These costs are real for the participants but have not been included in the overview
above.
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• Participants’ contribution: participants most often cannot afford to pay the full cost of the
programme. However, in some cases, e.g. in the case of the Masterclass, participants were
asked to make a financial contribution.
• Contribution towards participants’ costs: most organisations running the accelerator
programmes of this case study did not provide direct finance for the participation of rural
start-ups or enterprises (although farmers union co-financed the participation of the farmers
in their areas).
b) Human resources
Each of the examples recognise the importance of involving a combination of expertise to provide
integrated and holistic support to businesses. This has been achieved through the cooperation of
individual experts and/or organisations with specific skills and knowledge.
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7. Main lessons and recommendations
Based on the lessons learnt from the cases, and the advice of the initiators of the programmes, some
key recommendations can be drawn:
Demand-led approach is at the core of successful accelerator programmes
It is important to note that all three programmes were
"To start a successful accelerator programme you
highly demand-led (i.e. triggered by development
need to understand the needs of the farming
needs of local businesses and areas). The specialist business and have hands-on experience, the need
expertise and experience of the initiator or of the market for agricultural products and the
implementing organisation in business support largely needs of the business starters."
contributed to understanding the real needs of farming Mara Tsoumari
and other businesses.
Innovation need is the main trigger of accelerator programmes
Programmes were primarily triggered by the needs to bring
"To be a role model is crucial to be
innovation and creativity to businesses that can help them
credible, as you can’t expect others to
responding to new rural opportunities and challenges (such
do what you wouldn’t do yourself, for
instance taking risks." as climate change, improving biodiversity, responding to new
customer demand, short food supply chains, etc.). In all three
Mara Tsoumari
cases, the main intention of initiators has been to support
businesses with strong innovation potential (especially in the agri-food sector) through new products,
processes, brands and access to new markets and customer.
Accelerator programmes can only be implemented by committed and experienced initiators
Due to the nature of the programme (good
knowledge of business needs, flexibility, "Even if it is not possible to have funding from the
beginning, start on a voluntary basis and become a catalyst
need for voluntary contributions in some
for developing and enabling a nurturing ecosystem for
cases, need for strong partnership, etc.) a
people with new business ideas.
key to the success is the vision and
Be passionate and believe in what you do."
leadership of committed and experienced
initiators. Initiators and lead implementers Mara Tsoumari
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Pilot and test for refining programme, increasing credibility and ensuring on-going interest
The examples show that in order to develop an effective
"Test all ingredients, trying out with
accelerator programme, piloting and testing played a crucial
participants you know very well and
who are committed and open to role. Through the first experimental round of the programmes
thinking and working together." the initiators managed to draw lessons and improve subsequent
Patrick Pasgang
programmes (in terms of content, format, financial models,
etc.). Pilot programmes could help building credibility of
organisations (especially in the case of AgriEnt that ran the programme on a pro bono basis but aims to
develop future programmes through a commercial model). Pilots, when successful, can also help
engaging new participants in subsequent programmes (through spreading the word by existing
participants).
Make the programmes relevant, inspiring and motivating
"Make sure you have agreed with
To engage continuously participants (especially farmers with a each participant a specific goal and
tight time schedule), it is crucial that programmes are relevant, a follow-up action plan, which will
inspiring and motivating for participants. Key factors that can be their compass for focused
contribute to this include: activities in the following months."
Patrick Pasgang
• Agreeing personal goals at the beginning and follow-up
actions can help to avoid the risk that participants, after a meeting, will be caught again in their
daily work and problems.
• Flexibility: The programme methodology, themes, etc. often needs adjusting and therefore, not all
details can be defined in advance. Therefore, the programmes need to be designed with built-in
flexibility.
• Atmosphere that creates openness and builds trust and a cooperative spirit between the
participants; to this end, the number of participants should be limited.
• Identifying trainers with the right technical knowledge and skills: Trainers, facilitators and coaches
do not only need to have the technical skills but also strong facilitation skills to encourage open
discussion and trust among participants.
Multiple funding sources may be needed
"Be constructive and critical at the
same time, and be as specific as Accelerator programmes often cannot be implemented through
possible to avoid repeating postions a single funding source, but a creative and flexible approach is
based on beliefs or stereotypes, needed to identify the appropriate funding sources. Due to its
rather than evidence and validated diverse nature (e.g. in terms of the types of support provided)
experience."
various funding options may be available, e.g. through EU-
Jan Willem van der Schans funded programmes (such as EAFRD, ERDF Interreg, etc.).
Accelerators may not yield immediate results
It has been challenging to demonstrate results of the accelerator programmes:
• Firstly, although the accelerator programmes are ‘fast’, the results
"Be real and realistic, as
may become evident much later than the end of the programme.
changes in farming take
Some innovative ideas can be realised quickly (e.g. new food longer to yield results than in
products), whereas others may take several years (e.g. diversification other sectors."
into new services) due to need for capital and compliance with Mara Tsoumari, AgriEnt
legislation.
• Secondly, some of the results of accelerator programmes are ‘soft results’ that are hard to
measure, for instance the increased self-confidence of participants (reported by all three examples
as a result) or new connections through networking.
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