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Rural Businesses Case Study Accelerator

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21 views18 pages

Rural Businesses Case Study Accelerator

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Masuk Ur Rahman
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2016-2017 ENRD Thematic Group on

Smart & Competitive Rural Businesses


Case Study: Accelerators

Working Document

Mobilising the innovative potential of rural businesses


The experience of three rural business accelerators

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:

1. What is an accelerator? .......................................................................................................... 2


2. How can accelerators help improving rural areas & businesses?.......................................... 3
3. The three case examples in a nutshell ................................................................................... 3
4. What is the main added value and results? ........................................................................... 5
5. Starting up an accelerator programme .................................................................................. 6
What are the main triggers for an accelerator programme? ................................................... 6
Who initiates and who is involved? .......................................................................................... 6
What are the main steps of setting up an accelerator programme? ....................................... 8
How target businesses are identified and selected? ................................................................ 8
What financial resources are needed to set up the accelerator programme? ........................ 9
6. Running an accelerator programme .................................................................................... 11
Who runs the accelerator programme? ................................................................................. 11
How to run an accelerator programme? ................................................................................ 11
What financial resources are needed for running the accelerator programme? .................. 13
7. Main lessons and recommendations ................................................................................... 16

1
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).

Aspect Traditional consultancy Accelerator process

Single expert or business-support A team of experts and coaches,


Expert organisation provides expertise and researchers and leading practitioners
involvement know-how (e.g. through traditional assist in a step-by-step learning (multi-
training) stakeholder approach)

Content of the acceleration process


Content, format and schedule of
Content mainly defined by the needs of the
consultancy process mainly defined by
development participants, and the flexibility to
consultants
provide customised assistance

Step-by-step process, integrated


One-off grant with training focusing on a approach starting with identification of
Approach
single business development aspect ‘wild ideas’ and moving onto
operationalising ideas

Peer-to-peer exchange is organised all


Top-down capacity building with limited along the acceleration journey.
exchange among participants Collective learning is an important part
Methodology of the process

Innovative pioneers and leading


Traditional exchange about practices of
practitioners give inspiration and
other businesses, e.g. presentations
provide transferrable practices

Often focuses on single aspects of Holistic approach to business innovation


business development such as (strategy development and solving
Focus
organisational, financial or marketing technical, organisational, financial or
problems marketing problems)

Accelerators are focused business support approaches that:


✓ run for a short period (e.g. 3 to 6 months period or even shorter) often with some follow-up
actions;
✓ focus on a small group of entrepreneurs with strong motivation and/or innovation potential;
✓ use networking and peer-to-peer exchange widely (bringing together businesses, advisory,
research, etc.);
✓ involve inspiring and innovative ways of supporting businesses;
✓ provide integrated business support (from emerging business ideas to starting up the
business).

2
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.

3. The three case examples in a nutshell


This case study is based on three specific examples of rural accelerator programmes. The examples
have several common characteristics as well as differences:
• All three examples are targeted at businesses with strong motivation and/or innovation
potential and aim to inspire and realise new innovative business ideas.
• All three examples are primarily targeted on businesses in the agricultural sector, however,
they also have a strong focus on the diversification of these businesses, as well as relevance for
non-agricultural businesses.
• While the AgriEnt and Academy on Tour accelerators aim to fill the gap in terms of suitable
holistic business support that encourages emerging innovative business ideas in an efficient
way, the Masterclass’ primary goal was to contribute to shaping the food landscape of the
Rotterdam region.
• Time-requirement from participants vary: while the Academy on Tour is exceptional in
providing intensive business support within a one-day tour (based on meticulous planning),
the AgriEnt and Masterclass programmes require more time from participants (between 10 to
30 days).
• Available funding opportunities (and therefore the scope and possibilities of programmes)
differ considerably: the AgriEnt programme was developed fully based on voluntary (pro bono)
support and in-kind contribution (with the aim of pursuing funding for its next cycle after
proving the importance and impact of such a programme), the Academy on Tour used various
public funding sources (including EAFRD-LEADER), and the Masterclass was financed by the
Municipality of Rotterdam, the provincial government and local municipalities, and
contributions from the farmers’ union and the participants themselves.

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’.

3
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.

The Masterclass Short Food Supply Chains (the Netherlands)


The Rotterdam municipality, through its already established Food Cluster, searched for a possible
contribution to the World Expo 2015 in Milan to showcase the strength of the regional food
landscape, and by presenting testimonials of agri- and food-entrepreneurs. It was expected that
investments in entrepreneurship in the Rotterdam food cluster will not only pay off in terms of direct
economic and social benefits (more jobs, more healthy food, nice landscapes around the city), but
have the potential “to shape the Rotterdam foodscape for years to come”.
The Masterclass was conducted by Wageningen Economic Research (WEcR). It has brought together
farmers and growers, wholesaling companies specialising in short food supply chains, and rural
businesses engaged in urban-rural linkages to stimulate, facilitate and support business innovation.
Participants of the Masterclass were given the opportunity to systematically develop a new idea or
diversify/adjust their existing business model, through a series of six workshops.

Academy on Tour (Belgium, Flanders)


Academy on Tour is conducted by Innovatiesteunpunt, an NGO that runs the innovation advisory
service for agricultural enterprises, rural initiatives and local authorities for the professional
association of Flemish farmers. The main objective is to help farmers looking for inspiration and
professional assistance in developing and realising an innovative business idea. It provides a “fast
track” opportunity through participating in an inspirational bus tour to a neighbouring country
organised around a hot topic in agricultural innovation (such as Village Innovation, Food Innovation,
Multifunctional Agriculture, Commercial Algae Cultivation, or Short Food Supply Chain). Other topics
are being developed.

4
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 Masterclass involved 43 entrepreneurs with innovation


potential.
✓ Improved (innovation) • The Academy on Tour engaged 24 rural businesses in each of the 9
capacity and skills and trips organised.
self-confidence of • The AgriEnt accelerator involved 12 teams and worked intensively
existing rural businesses until the final stage with 5 entrepreneur teams.

• The accelerator programmes improved client-orientation and marketing skills of businesses, and raised
their self-confidence leading to innovative entrepreneurship.

• The Masterclass stimulated peer-learning and provided inspiring


examples of innovative business models.
• The Academy on Tour showed that having people spending an ✓ New connections /
intense day together on a bus is far more effective way of matchmaking, mutual
matchmaking than traditional business networking events. peer-learning,
• AgriEnt provided to all participating farmers and other teams networking
involved in the food supply chain an exchange and learning opportunities and new
platform to openly discuss and pursue innovative ideas. inspiration.

5
5. Starting up an accelerator programme

What are the main triggers for an accelerator programme?

Accelerator programmes are primarily triggered by:


✓ Lack of appropriate business support for new innovative business ideas that can respond to
emerging new trends and opportunities (not to ‘miss the train’)
✓ Vision to transform a region and rural areas through developing businesses that respond to
new opportunities and challenges effectively
✓ Need for supporting dynamic entrepreneurs with strong innovation potential.

a) Responding to emerging needs of rural businesses and rural areas

Accelerator approaches often


respond to new emerging How needs emerge?
needs of innovative and ✓ The AgriEnt accelerator programme responds to an increasing
dynamic businesses, and the interest of young people and other professionals (looking for new
need for relevant business opportunities) in the agro-sector to establish their own companies,
support (see AgriEnt and and aims to fill a gap in supporting agricultural business start-ups in
Academy on Tour). Greece by offering a holistic approach.
✓ The Academy on Tour accelerator is the result of a strong demand
In other cases (such as the of farmers and other rural enterprises for a high quality, low-cost,
Masterclass) they are responses time-efficient and needs-based assistance in the first steps of the
and tools to achieve a more business innovation process.
ambitious vision for the region ✓ The Masterclass was motivated by the expectation that investments
(e.g. to shape the Rotterdam in entrepreneurship in the Rotterdam food cluster will pay off in
food landscape through terms of economic and social benefits (more jobs, more healthy
supporting innovative food, nice landscapes around the city), and bring sustainability and
businesses). visibility to Rotterdam and its food cluster.

b) Innovation
Generating innovative businesses is a common feature of the accelerator programmes. All three
accelerator programmes recognised that supporting innovation and emerging new ideas is a crucial
element of improving local businesses and rural areas in general. Therefore, the programmes are
targeted at entrepreneurs with strong motivation and/or innovation potential; while the methodology
is based on inspiring the entrepreneurs through examples. In some cases, such as the Masterclass,
some entrepreneurs with lower innovation ambitions were also admitted in order to prevent ‘cherry-
picking’ (i.e. that always the same innovative entrepreneurs are selected for programmes).

Who initiates and who is involved?

The main initiators and stakeholders involved are:


✓ Motivated initiators: municipalities, advisory services, researchers and farmers’ associations.
✓ Existing networks (of initiator organisations and individuals) to identify relevant topics,
participants, experts, and disseminate information.

6
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).

b) The role of existing networks


The initiators of the accelerator programmes The role of networks
could largely capitalise on their extensive
✓ The Greek accelerator programme was triggered by
networks. These networks had a key role in: the Facebook network AgriEntrepreneurship that is
• identifying the right themes and topics, a community of practitioners and a self-help group.
• disseminating information about the ✓ Innovatiesteunpunt (the promoter of the Academy
programmes, on Tour accelerator) reaches out to more than
15,000 relevant enterprises, organisations and
• identification of suitable participants,
institutions. To identify potentially promising
• engaging the right experts to support and
innovators and entrepreneurs, Innovatiesteunpunt
run the programme. has been mobilising its partners and networks,
Participation in (or coordination of) these stakeholders and local authorities.
networks also gave visibility and credibility to ✓ The Masterclass used the networks of supporting
these organisations. partners including those of the Food Cluster,
Wageningen Economic Research municipalities and
Furthermore, an important element of farmers’ organisations.
accelerator approaches is developing
cooperation and networking between business innovators, experts, municipalities and cities, funding
organisations, and businesses directly. The initiators actively used their existing networks to mobilise
these key stakeholders at different stages of programme implementation.

7
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

How target businesses are identified and selected?

Key considerations when selecting participants are:


✓ Target group: agricultural and other rural businesses with strong motivation and/or
innovation potential
✓ Number of participants: relatively small group that can be engaged through participative
peer-to-peer methodologies
✓ Mobilising potential participants: through existing networks and on-line communication
channels
✓ Selection criteria: including skills and knowledge, motivation and innovation potential
Targeting, including identifying and selecting the right businesses and business ideas for the
programme, is probably the most important aspect of setting up the accelerator approach. The table
below summarises the key features, i.e. target group, target numbers and selection criteria of the
three examples studied.

8
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.

Target number 10 teams of entrepreneurs Maximum 24 participants 20 farmers


(min 2 members in each from 12 businesses / tour
team; i.e. min 20
participants)*

✓ Feasibility of idea ✓ Motivation


✓ Level of innovation ✓ Entrepreneurs with ‘an ✓ Ambition
✓ Knowledge of the innovative mind’ ✓ Experience
market ✓ Motivations and ✓ Willingness and
Criteria readiness to invest time
✓ Realistic revenue expectations
streams ✓ Business, mission and ✓ Innovative farmers or
✓ Common issues to allow future ideas those with strong
peer-learning interest to innovate
* First acceleration cycle operated with 12 teams due to high demand.
In the three examples, the focus has been on agricultural businesses. However, the accelerator
approach has wider relevance and is suitable for other types of rural businesses.
Programmes were targeted at a relatively small group of 20 to 24 participants that allows the
implementation of more interactive, peer-to-peer methodologies.
Accelerator programmes set up a carefully designed application and selection process. A common
feature of these programmes that they are mostly targeted at committed businesses/individuals
“with an innovative mindset” or those open to become more innovative. Common key criteria
include:
• Motivation and willingness to invest time
• Knowledge, experience and skills
• Innovation potential
During the identification of potential participants, all programmes actively mobilised the networks of
participating organisations (municipalities, farmers’ associations, advisory service clientele, etc.); as
well as used various communication channels (including website and social media).

What financial resources are needed to set up the accelerator programme?


a) Financial resources
The financial resources of a programme very much depend on the scope of the programme (i.e.
number of farmers trained), the method (e.g. one-day bus tour and training or series of workshops)
and the timeline of the programmes. Therefore, the preparatory costs provided in the table below are
only indicative.
Appropriate financial resources are required especially for the first round of the accelerator
programme. Setting up and operating a new type of innovation support service with uncertain results
requires special efforts to secure funding.

9
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.

Common challenge of starting accelerator programmes


• Identify and motivate participants: finding the right match in terms of motivation, expertise
and interest of more traditional farmers as well as those who are willing to innovate.
Motivate farmers to participate despite the time commitment has been particularly
challenging.
• Develop inspiring and innovative methodologies: the challenge to design methodologies that
are inspiring and encourage innovation, are adapted to the needs of the agro-business
sector. Identify inspiring examples and places to visit abroad (in the case of the Academy on
Tour and the Masterclass).
• Identify and involve the right experts: to identify experts who have the right technical skills as
well as ability to engage participants, to build trust between the rural entrepreneurs and the
team of experts.
• Access to finance (including harmonisation in terms of timing): for the AgriEnt accelerator,
funding has been a special challenge due to lack of public funding for newly established
organisation such as AgriEnt, lack of resources of the entrepreneurs, and administrative
difficulties of tapping into the national Rural Development Programme. In the case of the
Masterclass, the specific challenge has been to harmonise the dynamics of the programme
with the schedule of multiple funding decisions.

10
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.).

Who runs the accelerator programme?


Accelerator programmes can be
run by different types of The role of networks
organisations. However, typically ✓ The three initiators of the Greek AgriEnt accelerator programme
programmes include either are organisations specialised in business-advice and research, and
specialised advisory services or established a Civil Non-Profit Partnership (AMKE) in relation to
research centres (with a practical running the accelerator programme.
research focus). Accelerators ✓ The Academy on Tour accelerator is conducted by
often have strong links with local Innovatiesteunpunt (Innovation Support Centre), a well-
development agents, such as established NGO that runs the innovation advisory service for
agricultural enterprises, rural initiatives and local authorities for
municipalities and development
the professional association of Flemish farmers.
agencies.
✓ The Masterclass accelerator is managed by a partnership of
Driving an accelerator by well- Wageningen Economic Research (WEcR) responsible for content
established organisations with a and the Food Cluster of the Municipality of Rotterdam responsible
track-record in promoting rural for organisational and logistical tasks.
innovation allows to capitalise on
existing competences and skills,
tools and methods, networks and client relationships, and funding opportunities.
How to run an accelerator programme?
a) Methodology
The main methodological features of the individual programmes are summarised in the table below.
Common features include:
✓ Working methods that are interactive (peer-to-peer & networking), inspiring (site visits, films,
presentations) and complemented with specialist and tailor-made expert advice based on
needs;
✓ Small number of participants to allow interactive sessions (and finding common points of
interest);
✓ Relatively short time requirement: from 1 day to 15 weekends.

11
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

Number of 27 entrepreneurs (in 12 24 entrepreneurs (from 12 21 entrepreneurs


participants teams) enterprises) / tour

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

12
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.

13
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)

Expert costs €25,000* €5,000 €61,650○

Logistics €2,000 €4,000 €14,000○○


Travel costs for
(At participants’ own
participants to €15,000 €2,500
expenses)
meetings
Total costs €42,000 €11,500 €75,650○○○
(estimate/ pro-bono)

Estimated €1,556* €479 €3,782


cost/participant (for 15-weekend course) (for one-day tour) (for a 12-day programme)

Funding sources • No available public • Flemish Regional • Funding from Food


funding Government (incl. Cluster of City of
• Network experts work RDP/LEADER) Rotterdam
pro bono • ERDF Interreg • Funding by
• Meeting room by • Advisory service – own municipalities
Development Agency resource • Provincial government
• Local or provincial of South Holland
government
Participants’ • No fee for participation • No fee or charge for • Fee for participants:
contribution but entrepreneurs cover participation, or for €500 (Main contribution
own costs travel. for farmers’
participation is from
municipalities where
the farmer resides
(between 1000 to 3000
per farmer, farmers
unions provided 250 per
farmer who is member.)
Cost of follow-up €15,000 €30,000 €30,000**
actions (fees for consultancy, (fees for consultancy) (evaluation &
for longer than the dissemination)
duration of the
programme)
* Total of 840 working hours for 15 weekends for AgriEnt team and external experts.
** Note: not all entrepreneurs followed all the stages.

Includes the (estimated value of in kind) contribution of Rotterdam municipal staff (worth €19,000 for expert costs and
€7,000 for follow-up).
○○
Including one-day study trip abroad.
○○○
Additional €13,000 for the Pop-up Store in Markthal (engaged 5 farmers only), and €6,000 for communication.
The design of the programme needs to consider whether to charge a fee for participation, provide the
services for free, or provide a contribution for participants so that they are able to participate
(especially for start-ups)3:

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.

Common implementation challenges of accelerator programmes


• Timing: to ensure the timely planning of events, and keeping the strict schedules and timing.
• Budget: ensuring that the programme fits within the available budget and securing voluntary
or pro bono contributions (in the case of AgriEnt)
• Ensuring continued interest from participants: making sure that participants remain
motivated and engaged, and participate to the whole cycle of the programme. This has been
a challenge because of the time schedule of farmers.
• Raising confidence and change mentality of businesses
• Ensuring pro bono and in-kind contributions from experts with the right expertise and skills.

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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

could capitalise on existing networks and


through that develop credibility and "Engage in partnerships with universities, foundations,
facilitate the programme implementation business associations, financial institutions, LEADER groups
at all stages (starting from identifying and similar networks and partnerships to facilitate access
participants, through identifying the right to expertise for all the diferent aspects of developing a
business and for access to suitable financing."
trainers, to disseminating information,
etc.). Mara Tsoumari

Partnerships are at the heart of accelerators


Partnership among various stakeholders was at the core of all three programmes. In particular,
business support organisations / advisory services contribute to better understand the specific
business needs; municipalities can help ensuring local commitment and identifying & engaging local
farmers and other enterprises; research organisations can bring specialist expertise, financial
institutions can contribute to costs and can help identifying relevant sources of finances for
entrepreneurs.

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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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