P-ISSN: 2827-9832
E-ISSN: 2828-335x
http://ijsr.internationaljournallabs.com/index.php/ijsr
836
THE IMPACT OF AN ACCELERATOR PROGRAM FOR STARTUP
TO DEVELOP THE BUSINESS IN CIRCULAR ECONOMY
Andreas Pandu Wirawan, Susy Muchtar, Febria Nalurita
Universitas Trisakti, Jakarta
andreas122012006001@std.trisakti.ac.id, susy_muchtar@trisakti.ac.id, febria.nalurita@trisakti.ac.id
ABSTRACT
The economic transition from a linear to a circular economy is considered very important, especially to
reduce the environmental impact that has been generated due to waste. One way to accelerate the transition
is through the opening of new jobs through startups. Startups that are starting to grow their business need to
get a variety of support. Therefore, the acceleration program is here to help business development while
fostering innovation in the circular economy sector. The purpose of this study is to analyze the influence of
modules and learning, mentorship and mentoring, access to funding, and the network of cooperation
provided by the Circular Jumpstart acceleration program to startups in the circular economy. This research
uses a qualitative method by analyzing data obtained from questionnaires and the process of in-depth
interviews. The results obtained in the research of the Circular Jumpstart acceleration program have a
positive and significant effect on the business development of startups in the circular economy.
Developments resulting from the provision of modules and learning, mentors and mentoring, access to
capitalization, and cooperation networks to Circular Jumpstart participants. From the results obtained, it is
known that modules and learning, mentors and mentoring, access to capital, and cooperation networks
provided in the Circular Jumpstart program have a positive effect on the development of start-up businesses
in the circular economy sector. As for being able to have a positive impact, the Circular Jumpstart
acceleration program needs to develop access to government agencies, as well as provide a one-on-one
mentoring method to better adapt to the needs of startups.
Keywords: Business, Circular Economy, Acceleration Program, Start-up
This article is licensed under CC BY-SA 4.0
INTRODUCTION
The emerging issue of waste management has demanded the transition from a linear
economy, take-make-dispose into a circular economy (Asgari & Asgari, 2021; Prendeville et
al., 2014). The circular economy is the active involvement of a company to take advantage of
the resources rationally and recover waste into other raw materials, the circular economy can
improve economic value and decrease natural resource consumption (Herrador et al., 2022;
Lakatos et al., 2021). According to Green & McCann (2011), the circular economy is defined
as the concept of an economy that is close to the new opportunity for creative and innovative
activities. It means anything related to circular economy activity leads to more opportunity,
and the future of the world (Hassanli et al., 2020).
Adopting Japanese philosophy another terminology in the business, and industry rises
which is called a lean startup, the concept that suggests a flow of processes in systemizing
entrepreneurship and development (Silva et al., 2020). It is a company that has just been
established and is still in the developing phase of finding the market and product development
(Mulachela, 2021). The new and adaptive characteristics that brought circular economy and
startup come together in this research (Lieder et al., 2018). It is the process to answer the
problems in the society and environment while creating more opportunities to gain more
benefits (Jenkins, 2009). It can be concluded that startup development in the circular economy
The Impact of an Accelerator Program for Startup to Develop the Business in Circular Economy
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will give an impact directly on green job development (Sulich & Sołoducho-Pelc, 2022). The
rising of a startup along with the emergence of the support organization which used to be called
a Startup Assistance Organization (SAO), can be formed as an incubator and accelerator
(Tripathi et al., 2019). Differing from an incubator, an accelerator used to be a periodical
program, based on the cohort that gives knowledge, monitoring, and guidance to the early-
stage team and connects them to experienced entrepreneurs, venture capitalists, angel investors,
and executives of corporates (Hausberg & Korreck, 2021).
In 2021, a program accelerator focused on the circular economy was conducted aligned
with the 4th Indonesia Circular Economy Forum (ICEF) named Circular Jumpstart. ICEF itself
is part of the World Circular Economy Forum (WCEF) network which is the biggest forum
that gives circular economy solutions to the participation of business leaders, policymakers,
and experts around the world. The program received high enthusiasm from 76 startups that
focus on creating a solution in reuse, reduce, recycle, and aggregator in waste management.
With most of the participants in the early-stage level, Circular Jumpstart finally selected 15
finalists to be able to benefit from the support in form of modules and learning, mentor and
mentorship, access to capital, and a collaboration network.
In this research, the author would like to analyze the impact of the accelerator program to
help startups in the circular economy grow their business. Having a literature review from the
previous research with the title “Is Joining a Business Incubator or Accelerator Always a Good
Thing? By Lukosiute et al (2019), this research will analyze the data that has been collected
from 11 startups by filling out the list of questionnaires and conducting in-depth interviews
with 3 representative startups. Hopefully, from this research, the impact of an accelerator
program which in this case is Circular Jumpstart can be more elaborated and analyzed.
METHOD
This research is a qualitative study with a normality test from primary and secondary data
(Gachanja et al., 2020). Primary data is collected from the questionnaire and in-depth
interviews with the participant of Circular Jumpstart, in total there are 11 startups willing to
input their data and scoring. The 11 startups actually have passed the selection process over the
76 applicants whose data will be elaborated shortly. The secondary data are collected from
Figure 1 Graphic of 76 Startups Circular Jumpstart Applicants
The Impact of an Accelerator Program for Startup to Develop the Business in Circular Economy
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previous research on accelerator programs and the circular economy. The data sampling is
organized by validity and reliability test to connect the data from the primary source to the
existing research.
RESULTS AND DISCUSSION
As an accelerator program, Circular Jumpstart was conducted to be able to enable early-
stage startups in the circular economy to grow both economically and environmentally. It was
a three months program that involved modules, mentors, and investors and ended with a demo
day to connect startups with potential partners. However, according to the previous research
by Lukoisute et al., (2019) “Is Joining a Business Incubator or Accelerator Always a Good
Thing” it is found that not many startup founders are comfortable joining an accelerator
program. Most of the most innovative entrepreneurs saw that most of the programs are less
effective to address their needs, so they try other methods to grow their business. In the
research, the critics are defined into 12 factors which this research tries to simplify into four
categories, which are module and learnings, mentor and assistance, access to capital, and
collaboration network. Table 1 will elaborate on the 12 factors and the grouping into 4
categories.
Table 1 The Category of Supports from the Accelerator Program
No
The Critics from Lukoisute
Category
1
Incubation programs did not perform due diligence and
assessment to ensure startup quality
Module and
Learnings
2
General workshops, courses, and lectures about
entrepreneurship were not found to be valuable
3
Startups received low commitment from program mentors
and advisors
Mentor and
Mentorship
4
Tangible services such as access to manufacturing
capabilities were not provided or were limited
Access to Capital
5
Business incubation programs did not provide direct or
indirect access to investment
6
Equity taken by the business incubation program made
startups unattractive to potential investors
7
Startups did not efficiently use the office space provided by
the incubation program
8
Participation in a business incubation program puts
intellectual property at risk
9
The incubation program’s network was not aligned to the
startup’s product
Collaboration
network
10
Startups were unaware of the business incubation program’s
ecosystem
11
Following incubation, startups looked to join another
business incubation program or sought business angels
12
The incubation program did not meet the company’s initial
expectations
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Table 1The Category of Supports from the Accelerator Program
The research analyzes the critics that addressed the accelerator program by asking several
questions to the Circular Jumpstart participants. This aims to get the response regarding the
impact that accelerator programs can give on startups in the circular economy sector. Before
that, the accelerator program needs to address the same issue, in this case, a circular economy
solution through reuse, reduce, recycle, and aggregator for waste management. These are the
profile of startups that have responded to the research in Table 2.
Table 2 Profile of Startup Finalists Circular Jumpstart
No
Name of
Startup
Category of Solution
1
Bell Society
Reduce, reuse, and recycle
2
EcoplastID
Raising awareness, creating
technology as an aggregator, and
alternative materials
3
Koinpack
Create technology/ system to manage
waste (aggregator)
4
Litecon
Recycle
5
PlusTreat
Raising awareness, creating
technology as an aggregator
6
QYOS
Reuse
7
Ravelware
Recycle, Create technology/ system to
manage waste (aggregator)
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Each startup was given a list of questions regarding the impact of accelerator program
support from Circular Jumpstart including module and learning, mentor and assistance, access
to capital, and collaboration network. They were given a range of scores from 1 to 5, the less
number means less impactful, and more score means more impactful. After the score was
calculated the average score can be determined by being divided into eleven and resulted in the
score to the initial conclusion from the participant's responses
Table 2 Profile of Startup Finalists Circular Jumpstart
Question
Total
Score
Average
(/11)
Conclusion
Module and Learning
Are the topics in the modules and learning in the
Circular Jumpstart program useful for startups to
develop a circular economy business?
46
4.18
Very useful
Is the content of the material in the modules and
learning in the Circular Jumpstart program useful
for startups to develop a circular economy business?
46
4.18
Very useful
Overall, how do startups evaluate the quality of
the modules and learning provided during the
Circular Jumpstart program?
42
3.82
Good
8
Rifilo
Reduce
9
Robries
Recycle, and rising awareness of
people
10
SolusiBanjir.id
Reuse
11
TWFT (Turn
Waste into
Fine Taste)
Recycle
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Question
Total
Score
Average
(/11)
Conclusion
Overall, can the modules and lessons provided
during the Circular Jumpstart program affect
startups in developing their business in the circular
economy sector?
45
4.09
Very
impactful
Are the modules and lessons provided during the
Circular Jumpstart program in line with startup
expectations?
47
4.27
Very
relevant
Mentor and Mentorship
Circular Jumpstart's mentor profile is in
accordance with the needs of startups to develop a
circular economy business
46
4.18
Very
relevant
How is the mentorship or assistance method
provided by the mentors during the Circular
Jumpstart program?
41
3.73
Good
Can the experiences shared by the mentors in the
Circular Jumpstart program be of benefit to startups
in developing circular economy businesses?
46
4.18
Very useful
Are the mentors and mentoring methods in the
Circular Jumpstart program in line with startup
expectations?
43
3.91
Relevant
Access of Capital
Is the Circular Jumpstart program useful for
startups in getting access to capital?
43
3.91
Useful
Can the Demo Day session of the Circular
Jumpstart program be useful for startups to gain
access to capital?
39
3.55
Useful
Has the access to capital obtained in the Circular
Jumpstart program met the expectations of startups?
38
3.45
Relevant
Collaboration Network
Is the cooperation network obtained during the
Circular Jumpstart program useful for startups to
develop a circular economy business?
43
3.91
Useful
How is the network of cooperation established
with the organizers of the Circular Jumpstart
program?
46
4.18
Very good
How is the cooperation network established with
fellow startups participating in the Circular
Jumpstart program?
43
3.91
Good
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Question
Total
Score
Average
(/11)
Conclusion
Does the collaboration network obtained from
the Circular Jumpstart program meet the
expectations of startups?
45
4.09
Very
relevant
Table 2 Profile of Startup Finalists Circular Jumpstart
From the questionnaire that has been filled out by 11 startups, we can see some indication
of how the accelerator program can impact startups in the circular economy to grow their
business. In order to emphasize what the research has found in the questionnaire, there is also
the result of an in-depth interview represented by 3 startups which are Ravelware, QYOS, and
Turn Waste into Fine Taste (TWFT) which will be elaborated completing some findings from
the survey. These are some of the findings:
a. The Impact of Modul and Learning of Circular Jumpstart to Help Startups in Circular
Economy Grow Business
From the result of the survey on the questionnaire, we have got five answers which are very
useful, very useful, good, very impactful, and very relevant. It indicates that modules and
learnings delivered during the program have brought a positive impact on the startup growing
the business. In the in-depth interview, TWFT was quite satisfied with the learning materials
provided during the program, including material on Intellectual Property Rights (IPR), North
Star Metric, and also business models. “The module and network were very influential because
at that time we were required OKR and the financial arrangements which were eventually
given during the program. Circular Jumpstart can at least make startups survive amid the
COVID-19 pandemic with all the assistance offered.” Darina Maulana, Cofounder of QYOS.
Adding to what has been said by other startups, Ravelware feels that the lessons learned have
helped them connect the dots and change the way of thinking from a contractor company into
a startup business model.
b. The Impact of Mentors and Mentorship of Circular Jumpstart to Help Startups in
Circular Economy Grow Business
Mentors and mentorship are considered to have a good impact on startups to develop
businesses in the circular economy sector. Because from the questionnaire result, the research
finds four positive answers, which are very relevant, good, very useful, and relevant. Ravelware
is very much in line with the results of the questionnaire because, with the responses given by
the mentors, they get what they have been looking for, namely a correction or knowing where
the error lies. Prior to participating in Circular Jumpstart, Ravelware has pitched to various
investors but no one has been able to provide in-depth feedback than what they found during
the mentoring session in Circular Jumpstart.
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c. The Impact of Access to Capital of Circular Jumpstart to Help Startups in Circular
Economy Grow Business
Having three positive results from the questionnaire with two useful scores and relevant,
access to capital provided by Circular Jumpstart is considered impactful for the participants. In
his statement through in-depth interviews, Ravelware was quite helped by the access to capital
provided both during and after the program took place. They are motivated enough to be able
to carry out business development through the Go Austria program which even though
indirectly, Ravelware recognizes the benefit of joining the accelerator program in Indonesia
before expanding the business abroad. However, there is an input from QYOS, that there needs
to be a bit of clarity between startups and investors in terms of the deal of investment, which
sometimes has not been built strong enough before they meet one another. It leads the long
journey of exploration, matching the investment thesis and potential that should be prevented
so it would not be inefficient.
d. The Impact of Collaboration Network of Circular Jumpstart to Help Startups in
Circular Economy Grow Business
The last category is the collaboration network which also received positive feedback from
Circular Jumpstart participants. The four questions given to them resulted in useful, very good,
good, and very relevant. The collaboration network obtained through the Circular Jumpstart
program has a good influence on the development of startup businesses in the circular economy
sector. Ravelware through in-depth interviews said the collaboration network provided was
like what Ravelware expected to get endorsements from the circular economy community.
There were also several opportunities to become speakers, and source persons as experts after
the Circular Jumpstart program which was very helpful, especially to raise the brand. On the
other hand, TWFT is quite grateful because through the network they get quite a lot of
invitations to collaborate, at least until early 2022 before TWFT decides to go on hiatus.
DISCUSSION
By definition accelerators are usually fixed-term, cohort-based programs that provide
education, monitoring, and mentoring to teams of startups (usually not single entrepreneurs)
and connect them with experienced entrepreneurs, venture capitalists, angel investors, and
corporate executives and prepare them for pitches where graduates offer innovation to potential
investors (Hausberg & Korreck, 2018). Therefore, the Circular Jumpstart program was
conducted to provide tailored support including modules, mentorship, and access to investment
for early-stage startups specifically in the circular economy sector. However, the previous
research by Lukoisute et al., (2019) in "Is Joining a Business Incubator or Accelerator Always
a Good Thing?" who conducted research on several startups found that one out of eight startups
stated that general workshops, courses, and learning about entrepreneurship were not useful.
One startup explained that taking part in training when they needed financial resources to
develop a Minimum Viable Product (MVP) was a waste of time. It brought curiosity to see is
beneficial or impactful for a startup to join Circular Jumpstart to grow the business by referring
to the previous research by Lukoisute et al., (2019).
It turns oppositely what the research finds from the participant of Circular Jumpstart to the
previous research. Even though not all positive impacts were received by startups right after
The Impact of an Accelerator Program for Startup to Develop the Business in Circular Economy
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the event, all the feedback and comment said that the program brought many benefits to them.
According to Bhardwaj and Ruslim (2018) “the Startup Assistance Organization in Indonesia:
Taxonomy and Landscape” shows that the majority of accelerator programs provide funding
guarantees to program participants. In contrast to accelerators, incubators and ecosystem
builders do not usually offer investment guarantees but have invested in their participants and
alumni. Circular Jumpstart is an accelerator program, it provided grants only for the winner,
and the rest only provided access and collaboration opportunities. But that is what they are
looking for, the opportunities, the network, the feedback, and the methodology that they
difficult to find in other generic pitching programs.
CONCLUSION
From the results that have been obtained, it is known that modules and learnings, mentors
and assistance, access to capital, and collaboration network from acceleration programs could
bring a positive impact on the business development of startups. In this case, the program
accelerator Circular Jumpstart has shown how it can bring a positive impact compared to the
previous research by Lukoisute et al., (2019). The curated program, specific topics, and specific
experts have been tailored nicely so the startup participants could comfortable enough to follow
the process. The direct benefits can be a form of module, or framework that could be adopted
right after the class, then the indirect benefits can be a form of the collaboration network,
endorsement, and sharing of opportunities even after the program is finished. Hopefully, with
more business startups growing with the help of the accelerator program, more impact is
created to solve waste management problems.
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