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TEC Edmonton survey suggests companies that use incubators do better

An annual survey by leading Canadian start-up incubator TEC Edmonton suggests that companies which launch through an incubatory or accelerator experience faster growth than companies that don’t.

The “TEC Edmonton Client Economic Outcomes Survey” asks companies that went through the incubator how much their revenues are growing, how many new jobs were created, whether private investors are jumping on board, and other growth-related questions.

Over the past four years, the survey has shown that TEC Edmonton’s 125 active clients have collectively grown both revenue and employees by 25% each year. By comparison, according a survey of all Canadian start-ups conducted each year by Industry Canada, the average early stage company has grown less than 10% annually over the same past four years.

“We have learned that early stage companies, using services such as TEC Edmonton offers, do significantly better than those not using such services,” says CEO Chris Lumb. “We credit this not to TEC Edmonton per se, but to the entrepreneurs who choose to use services of high-quality accelerators and incubators.

“Over the four years we’ve been doing our survey,” Lumb adds, “the largest indicator of entrepreneurial success is that the companies that access external services to better. This makes sense: no small business has all the resources, networks and capabilities it needs to succeed. Externally focused entrepreneurs who understand this and reach out for assistance are significantly more successful.”

Dan Herman of the Canadian Centre for Digital Entrepreneurship and Economic Performance holds up the TEC Edmonton survey in his article for the Globe & Mail newspaper: “This isn’t just about satisfying the demands of funders,” he writes. “It’s about putting accountability measures in place to ensure that the young firms and entrepreneurs who use these services are going to get good value for their participation and investment.”

Source: TEC Edmonton

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