Why 500 accelerators might be holding UK startups back

Startup accelerators in the UK need clearer programme standards to more effectively support those starting a business, according to a report by a leading entrepreneurial think tank.

The report from The Entrepreneurs Network (TEN), named ‘Full Speed Ahead’, points out that the UK is now home to over 500 accelerator programmes. Since 2016, the UK’s national innovation agency, Innovate UK, has invested £219m in the programmes alone.

Despite the significant public funding for these schemes, though, TEN argues that “questions nonetheless persist about effectiveness, strategic alignment, and return on investment”.

Featuring interviews with industry experts and founders, the report recommends four reforms to enhance quality and help entrepreneurs navigate the support ecosystem.

“More transparency” needed in UK startup support

The UK is recognised as a hotbed for global entrepreneurship. One report estimates that we are now the world’s second-largest startup ecosystem in terms of funding, ahead of China. 

Partly, this is enabled by government support. Seed and pre-seed startups are supported through organisations like Innovate UK and TechUK, which deliver funding and know-how through incubators, accelerators, and support programmes. 

But, as the TEN report highlights, a lack of clear standards and shared definitions means that many of these initiatives are operating without clear metrics for success. This is making it difficult to identify and funnel resources towards the more effective schemes.

The network makes various critiques of the current system. These include: 

• Misclassified accelerators that provide little more than basic workshops
• Misaligned programmes that “shoehorn” specialist firms into generic curriculums
• An overfocus on superfast scale-ups, over companies aiming for sustainable growth
• London-centric distribution (nearly 60% of all accelerators are based in the capital)

Rather than empowering entrepreneurs, it warns that the current system is cycling founders through multiple support models, often without meaningful progress or access to investment. 

London hiding regional underperformance

The report also cites data from Beauhurst that only 57% of listed incubators or accelerators are actually active in the UK. One third have closed, and 10% are in a “state of limbo”.

In some regions, this figure is even higher. TEN analysis finds that in regions like Northern Ireland and Yorkshire and the Humber, over 50% of accelerator programmes have shut. 

In Scotland and the East of England, over one in five programmes are classed as ‘Amber’, meaning they might be listed as active, but no recent activity has been recorded.

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.”

What does The Entrepreneurs Network report recommend?

According to The Entrepreneurs Network, the UK government must reform its startup support initiatives to better align offerings with founder needs. It makes four recommendations to do so:

1. Create a clear classification system for programmes and leadership, with defined minimum standards and outcome metrics

2. Reform impact measurement to focus on founder-centric metrics that track entrepreneurs’ ongoing journeys rather than just quick wins

3. Replace stop-start public funding cycles with 3-5-year contracts, and defund programmes that repeatedly fail to meet milestones

4. Launch a funding voucher scheme, piloted by Innovate UK and supported by a registry of accredited providers, to give founders control over spending

“We need reforms that make programme outcomes transparent and reward schemes that create lasting impact”, adds Salter.