Incubation in Entrepreneurial Ecosystems

5. Coaching

Abstract

Coaching – whereby experienced advisors help entrepreneurs to meet their potential through structured, goal-oriented interactions – is a central component of business incubation. It can have a transformative impact on the development and trajectory of new companies by fostering personal growth, enhancing workplace performance, and supporting entrepreneurial success. This chapter examines the main methods and tools of coaching and how these are applied in the context of business incubation, with analysis of coaching approaches in Sweden and other OECD countries and discussion on the implications for policy.

What is coaching?

Coaching and mentoring are about helping individuals to discover and realise their potential through supportive, goal-oriented interactions (Klofsten and Öberg, 2011[1]; Kuratko, Neubert and Marvel, 2021[2]). This broad view encompasses various approaches where an experienced advisor – referred to here as a coach – assists an individual or, in this context, an entrepreneur in effectively managing professional or personal challenges. The aim is to leverage focused conversation and reflection so that entrepreneurs learn to act more effectively on their own behalf (Clutterbuck, 2008[3]). Compared to purely directive instruction, coaching emphasises partnership and shared accountability, while also allowing space for reflection and growth. Stemming from fields such as counselling, adult education, and organisational development, coaching has adopted a variety of techniques supportive of transforming entrepreneurs’ thinking, self-awareness, and performance (Kuratko, Neubert and Marvel, 2021[2]).

Crucially, coaching involves crafting a structured relationship that fosters trust and enhances dialogue. Whether supporting university-based entrepreneurs in technology ventures or executives in leadership development, coaches collaborate with entrepreneurs to articulate aspirations, clarify objectives, and identify suitable courses of action (Bryan, Tilcsik and Zhu, 2017[4]). This dynamic is often described as unlocking potential, with the conviction that the individual being coached already holds inherent capabilities waiting to be fully activated (Devins and Gold, 2003[5]). Developmental coaches strive to support the learner in discovering their own answers, intervening with targeted advice only when the entrepreneur’s experience or insights might be lacking (Klofsten and Öberg, 2011[1]). Across diverse cultures and organisational contexts, the term coaching captures a relationship that can be short-term or long-term, directive or non-directive, and performance or career-focused, all while prioritising a sense of purpose and mutual commitment to learning. Hence, the concept of coaching unifies many forms of supportive guidance, serving as a cornerstone of leadership development, venture success, and personal growth in many different environments (Burdett, 1998[6]).

How is coaching conducted?

Coaching is conducted through structured interactions that empower entrepreneurs to reflect, set goals, and take purposeful action toward their development, typically under the guidance of an experienced professional (Klofsten and Öberg, 2011[1]). These interactions may occur one-to-one or in small groups and vary in terms of the time horizon and meeting frequency and duration. Incubator programmes often emphasise short, targeted sessions where entrepreneurs present emerging challenges and receive immediate feedback and action-oriented tips. Coaching and mentoring can also take place over longer cycles, facilitating deeper relationships that address career transitions, leadership growth, or personal development (Ciuchta et al., 2018[7]). In most coaching contexts, the process involves establishing rapport and defining a joint purpose, then regularly revisiting goals to keep discussions focused.

Coaches often use open-ended questions to guide entrepreneurs in exploring their assumptions, identifying resources, and generating solutions. The coach supports the entrepreneur by facilitating clarity on objectives, reviewing the current situation, brainstorming possibilities, and committing to specific next steps (Clutterbuck, 2008[3]; Kuratko, Neubert and Marvel, 2021[2]). Throughout these dialogues, effective coaches maintain an atmosphere of trust and encourage constructive self-critique. By “holding up a mirror”, the coach challenges entrepreneurs to confront gaps between their intentions and actions. Furthermore, coaching is frequently reinforced through structured follow-up. Individuals may use action logs, accountability check-ins, or reflective journaling to integrate insights gained during sessions into real-world activities (Klofsten and Öberg, 2011[1]). Whether the focus is business incubation, career progression, or personal growth, the essence of coaching remains consistent: it is a practice of forging a trusting and growth-oriented relationship in which the coach’s questions, observations, and supportive challenges catalyse intentional change in the entrepreneur (Bryan, Tilcsik and Zhu, 2017[4]).

What tools are used in coaching?

Coaches and mentors draw on numerous tools and frameworks to support a productive coaching relationship, tailoring their methods to the specific needs and goals of the entrepreneur (Klofsten and Öberg, 2011[1]). This prompts a focused yet flexible conversation where individuals define their aspirations, analyse the current situation, propose potential approaches, and commit to specific actions (Kuratko, Neubert and Marvel, 2021[2]). Important aspects of coaching are active listening, thought-provoking questions, and reflective summaries – techniques that ensure the entrepreneurs feel heard and are systematically guided through a process of self-discovery. Many coaches also employ checklists or diagnostic tools to capture progress and identify potential blind spots. For example, in entrepreneurship training programmes, a standardised checklist might facilitate consistent reviews of an entrepreneur’s marketing, finance, and operational milestones (Devins and Gold, 2003[5]). In certain workplace or organisational contexts, formal assessments such as 360-degree feedback or personality inventories can be integrated into coaching to provide objective data about strengths, weaknesses, and perceptions from peers or supervisors (Clutterbuck, 2008[3]). These instruments help the entrepreneur align personal insights with objective indicators.

Visualisation and scenario planning are also frequently used to stimulate creative thinking and plan alternate outcomes, especially among startup founders facing uncertain markets (Kuratko, Neubert and Marvel, 2021[2]). Reflective journals may be encouraged between sessions, giving entrepreneurs a structured opportunity to record accomplishments, challenges, and lessons they have gleaned daily or weekly. Moreover, digital collaboration tools such as shared documents can be used to facilitate continuous communication, ensure accountability, and track results.

Regardless of the precise mix of techniques, coaches increasingly incorporate methods gleaned from psychology, organisational behaviour, and project management to help entrepreneurs transform abstract goals into concrete steps and measurable achievements (Burdett, 1998[6]). In this way, the right combination of tools not only enriches coaching sessions but also bridges the gap between insight and the achievement of tangible progress.

Can any effects of coaching be observed?

A growing body of evidence indicates that coaching has observable positive effects across a variety of metrics relating to personal growth, workplace performance, and new venture success (Klofsten and Öberg, 2011[1]). Individuals often report improvements in self-awareness and confidence as they engage in structured reflection and receive tailored feedback from coaches (Burdett, 1998[6]). In workplace contexts, coaching correlates with higher productivity and job satisfaction. For instance, in a study of public agency employees, participants who received executive coaching demonstrated notable gains in efficiency, translating directly into measurable productivity increases (Ciuchta et al., 2018[7]). Similar trends have been observed among technology entrepreneurs who, through coaching engagements, refine their business models and enhance their ability to identify and leverage new market opportunities (Hunt and Weintraub, 2020[8]; Kuratko, Neubert and Marvel, 2021[2]; Nicholls-Nixon and Maxheimer, 2022[9]).

Coaching outcomes are also manifested in more qualitative dimensions. For example, research highlights enhanced thinking quality among entrepreneurs that receive coaching, enabling more strategic decision making and more effective problem-solving (Devins and Gold, 2003[5]). This deepened insight can reduce costly missteps and fosters innovative approaches to addressing challenges. Moreover, professionally coached entrepreneurs exhibit an increased likelihood of securing investor interest since they demonstrate willingness to adapt and learn (Kuratko, Neubert and Marvel, 2021[2]). Meanwhile, employees in organisational settings who experience well-structured coaching have reported improvements in career progression, leadership capacity, and stress management (Bryan, Tilcsik and Zhu, 2017[4]).

An additional aspect that should be considered is the broader organisational or ecosystem impacts of coaching. When coaching initiatives permeate a culture, teams often develop greater trust, better communication, and higher engagement. Feedback loops become more robust, guiding employees and entrepreneurs toward continuous improvement (Kuratko, Neubert and Marvel, 2021[2]). Studies also indicate a positive correlation between coaching relationships and social networks, allowing participants to gain timely access to critical resources or knowledge (Ciuchta et al., 2018[7]). Hence, benefits do not solely accrue to the individuals being coached; they also extend to the people and institutions around them, reinforcing the value of coaching as a driver of both personal development and collective performance.

Coaching within business incubators

Coaching and mentoring is a central component of the business incubation process. Nearly all incubators offer coaching either themselves directly or via third parties (Centre for Entrepreneurs, 2022[10]). The knowhow, experience and contacts that coaches can provide are critical assets for new entrepreneurs, helping them to navigate the many uncertainties and resource constraints they face as they seek to develop and implement their business idea. Coaching is often cited among the most impactful forms of assistance that entrepreneurs receive during the business incubation process.

In Sweden, Vinnova (the national innovation agency) has sought to standardise coaching practices across the incubation system by establishing a coaching framework, based on best practices from successful incubators. This framework is summarised in Table 5.1 below. As a core condition for funding through the National Incubator Program (NIP), incubators are required to adopt this framework and submit detailed information on their coaching structures and processes, including the tools and methods used. Compliance is monitored through periodic assessments to ensure incubators adhere to the prescribed coaching structure. Access to NIP funding is in this way made contingent on alignment with the principles of the coaching framework, making it a prerequisite for selection for support through the programme. The aim is to ensure consistent, high-quality support for startups through regular interactions, expert guidance, and milestone-based progress tracking, among other things.

Table 5.1. Key required elements in the incubator coaching approach within Sweden’s NIP

Category	Requirement
Incubator coaching approach	Tailored support includes evaluations, regular meetings, expert guidance, networking, and milestone tracking to help ventures achieve their goals.
Recruitment of coaches	Thorough screening ensures selected candidates have the expertise and interpersonal skills needed for effective venture support.
Background and expertise	Professionals with diverse experience in business development and leadership offer comprehensive guidance from ideation to scaling.
Professional development	Training programmes, workshops, and feedback opportunities help refine skills and prepare coaches to meet ventures' needs.
Collaborative coaching model	A collaborative model assigns lead and backup coaches, combining internal and external expertise for tailored and strategic venture support.
Focus areas and tools	Structured tools like the Business Model Canvas and IRL are embedded in the process to align coaching with venture progress and market readiness.
Ethical and transparent practices	Adherence to ethical guidelines ensures transparency, confidentiality, accountability, and the avoidance of conflicts of interest.
Monitoring and evaluation	Regular updates, milestone reviews, and evaluations align strategies with ventures' goals and enable continuous improvement.

Incubators’ coaching approaches

Coaches and mentors in incubators play a central role in supporting client companies by providing structured and personalised advice and support. They typically begin with an initial evaluation of the business' idea, market potential, and team dynamics to create a tailored action plan. In Sweden, NIP-funded incubators adopt a structured yet flexible coaching approach to support venture development. Regular meetings – including weekly check-ins and monthly reviews – ensure that coaching remains adaptable to each business’ evolving needs. Coaches provide guidance on business modelling, strategy development, and operational improvements, offering expert insights and constructive feedback. Additionally, they facilitate connections with relevant networks and advisors, enabling their clients to access valuable external resources. Progress is systematically tracked through milestone monitoring, ensuring that the companies stay aligned with their objectives and continue to develop effectively.

Coaches in incubators utilise a range of tools to guide companies through different stages of development and ensure alignment with market demands. These include the “Business Model Canvas”, the “Need, Approach, Benefit, Competition” model, and customer interaction frameworks. In Sweden, the progress of companies is closely monitored by coaches using the “Innovation Readiness Levels” (IRL) tool. In addition to these tools, coaches assist with financial planning, milestone tracking, and performance monitoring. This structured, measurable approach helps ensure that startups receive the support they need at every stage of development.

Coaching formats vary based on the target audience, stage of development, and the goals of the coaching process. A widely used approach is the one-to-one coaching model, where a dedicated coach works with a venture’s leadership team, providing bespoke advice and feedback tailored to the specific challenges and needs of the company. Additionally, group coaching sessions are often organised, where entrepreneurs can benefit from the collective wisdom of a cohort of peers by sharing experiences and learning collaboratively. These sessions foster peer-to-peer support by enabling ventures to share experiences, solutions, and strategies with one another. Incubators also offer expert workshops and seminars where coaches with specialised knowledge provide targeted advice on key business areas such as financial management, marketing strategies, and leadership development. Another common method is networked coaching, where incubators facilitate connections between their businesses and a wider network of industry experts, mentors, and investors. These connections provide valuable insights and open doors for collaboration, funding, and partnership opportunities.

The mentorship network model involves incubators assigning multiple coaches with different areas of expertise to support different aspects of businesses’ development, such as finance, marketing, or product development. Similarly, the collaborative coaching model combines internal and external expertise, assigning lead coaches and backup coaches to ensure a diverse set of perspectives. For example, the incubation programmes of the French Tech initiative and the “Start it @ KBC” accelerator in Belgium each have coaches from various fields – such as technology, finance and business – working together to provide comprehensive support to companies across different aspects of startup development such as strategy, marketing, and international expansion. Similarly, at the Oxford Foundry incubator and Cambridge University’s Innovation Centre in the United Kingdom, collaborative coaching models encourage synergies between researchers, entrepreneurs, and business experts, ensuring that startups successfully transition from research to market-ready products. Collaborative coaching should involve both internal and external experts to provide a broad spectrum of perspectives and expertise. In Sweden, the collaborative coaching model is supported through a network of coaches and external advisors that fosters co-ordination and knowledge sharing. Coaches regularly meet in networking events and peer learning sessions, where they exchange insights, discuss challenges, and refine their approaches. These events facilitate collaboration among coaches as well as industry experts. Incubators such as “LEAD” in Linköping also promote collaborative coaching by pairing startups with lead and backup coaches. External advisors with sector-specific expertise further enrich the coaching experience, helping ventures navigate sector-specific challenges. This networked approach ensures that all coaches remain aligned and informed, ultimately enhancing the quality and impact of the support offered to startups.

Recruiting coaches

The recruitment of high-quality coaches is key to the effectiveness of support provided. Incubators aim to select coaches whose expertise aligns with the specific needs of the ventures they support. Coaches are drawn from both the public and private sectors, bringing diverse perspectives and specialised knowledge to the table. The recruitment process should be thorough, focusing on experience, expertise, and the ability to build strong relationships. Framework agreements can define the roles of coaches, while task-specific agreements can be used to clarify their responsibilities. It is essential that coaches maintain independence, disclose any conflicts of interest, and avoid commercial ties with ventures to preserve the integrity of the coaching process. Careful selection therefore ensures that coaches can offer relevant and effective support, combining technical expertise with strong interpersonal skills.

In terms of their background, incubator coaches are often chosen for their experience and competencies in business development and networking, positioning them to provide valuable guidance on market needs and business models and strategies. They often possess a blend of practical experience, academic qualifications, and industry knowledge, allowing them to address a broad range of critical areas such as product development, market strategy, financial management, and leadership. Additional expertise is provided by independent consultants and external experts, ensuring that ventures receive comprehensive support as they progress from ideation to scaling.

Recruitment practices for coaches vary depending on the specific goals of incubation programmes. For instance, the MaRS Discovery District in Canada may recruit coaches with international business development experience to support startups in scaling globally, while incubators focusing on local or national goals might focus on recruiting coaches with deep knowledge of the local economic and technological landscape. Some incubators prioritise the recruitment of coaches with a blend of scientific research knowledge and entrepreneurial experience and with expertise in research commercialisation and academic entrepreneurship, particularly those that aim to bridge the gap between scientific research and market-ready products, such as the Incubateur HEC Paris or the Oxford Foundry in the United Kingdom.

Training coaches

Professional development for coaches and mentors is also critical. By offering training programmes, workshops, and peer learning sessions, incubators can ensure that their coaches refine their skills and stay updated on industry trends. Regular evaluations and feedback from ventures also allow incubators and coaches to assess the effectiveness of the coaching and make necessary adjustments. Coaches can also attend industry conferences and interact with thought leaders, which helps them remain at the forefront of innovation and continue providing effective guidance.

Many incubators provide continuous training opportunities for coaches. Good practice examples include:

• In Malmö in Sweden, the Minc Incubator prioritises coach development through access to an accelerator programme that encourages collaboration with external experts in areas like lean startup methodology, business modelling, and scaling strategies. This ensures that the coaches remain at the forefront of industry best practices. Coaches also benefit from ongoing training in business strategy, innovation management, and coaching techniques through expert-led workshops. The effectiveness of their support is continuously assessed through regular feedback from the startups, ensuring that the coaching approaches are always aligned with real-world challenges and changing market needs.

• The “Sting” incubator in Stockholm adopts a tailored approach to coach development by offering industry-specific workshops in areas such as fintech, life sciences, and digital health. These workshops, led by industry experts, provide coaches with a deep understanding of sector-specific challenges, equipping them to offer specialised advice to startups. The incubator also fosters a culture of peer learning, where coaches meet regularly to discuss challenges and share insights. This environment encourages continuous improvement in coaching techniques and provides a platform for senior coaches to mentor newer ones, ensuring all coaches are well-equipped to guide startups effectively. This combination of industry-specific expertise and peer collaboration enables the incubator’s coaches to offer strategic, informed support.

Elsewhere, IMEC.istart in Belgium offers workshops and networking events that expose coaches to emerging global markets and the latest technological advancements. Similarly, the DMZ incubator at Ryerson University in Canada provides specialised training for coaches focused on the needs of startups in the digital and tech sectors.

Transparency and ethics

Ethical and transparent practices are fundamental to the coaching process. To ensure that coaches provide honest and constructive feedback that prioritises the long-term success of the company, coaches in Sweden are prohibited from having financial interests in the ventures they mentor, thus avoiding any potential conflicts of interest. Framework agreements and customer relationship management (CRM) systems also help to ensure consistency, accountability, and equal treatment during coaching sessions. Transparency should also be maintained in any funding decisions and selection criteria for coaches and startups. Another important aspect is safeguarding confidentiality, which fosters a trusting relationship between coaches and ventures.

Monitoring

Monitoring the progress and performance of startups provides valuable insights on both the coaching needs of the startups and the effectiveness of current supports. For this reason, incubators and coaches often deploy data-driven approaches that leverage performance metrics and continuous feedback loops in order to adjust coaching strategies. This is essential in enabling coaches to adapt and refine their approach to meet the evolving challenges and unique needs of their clients as they progress through different stages of maturity and development.

Incubators use a variety of methods to track the progress and performance of their startups and coaches. This includes qualitative feedback from businesses on the coaching they receive, gathered through surveys, interviews, or focus groups. This helps assess whether coaching is addressing the strategic direction of the business, solving key challenges, and improving decision making confidence. They also frequently track startup milestones and performance metrics such as product launches, fundraising, sales, and social media engagement.

Coaches track different metrics depending on the venture’s business maturity. At the early idea development stage, coaches might focus on metrics like the number of product iterations or customer validation sessions conducted, to provide a gauge of how well the business idea is evolving. As the venture enters the market and begins to grow, coaches start to track indicators like revenue, partnerships, and customer acquisition costs. At the scaling stage, metrics like organisational growth, leadership development, and market expansion, become relevant in order to assess whether the business is ready to scale effectively. Coaches also use self-assessment tools to evaluate their approach and adjust their coaching techniques accordingly. Digital platforms can enhance the coaching process within incubators by enabling coaches and startups to stay connected and track progress more efficiently. As an example, the DMZ incubator at Ryerson University in Canada employs data analytics to monitor startup performance in real time, allowing coaches to swiftly adjust their guidance as needed.

Conclusions and policy lessons

Coaching and mentoring play a crucial role in business incubation. It delivers a host of important benefits to entrepreneurs and startups, including improved decision making, progress monitoring, and resilience, as well as enhanced leadership and management capabilities. Coaches also serve a networking function by linking their clients to resources, mentors, investors and experts, facilitating access to capital and business opportunities that can significantly accelerate companies’ development. In this way, coaches help startups to overcome obstacles such as limited resources, market competition, and complex business dynamics.

Delivering effective coaching through incubators requires a tailored, data-driven approach that continuously adapts to the needs of startups. One key to successful coaching is recruiting qualified coaches who possess both the technical expertise and interpersonal skills necessary to foster trust, collaboration, and growth. Coaches should have extensive experience in business development, leadership, and industry-specific knowledge to provide relevant and actionable advice. Another critical factor is the use of coaching tools and frameworks that help ventures track progress, set milestones, and assess their market readiness. Monitoring and evaluation are also essential to ensuring that coaching strategies are working effectively, with regular check-ins, milestone reviews, and iterative adjustments to coaching plans being key to successful coaching.

Incubators face several barriers that can hinder the effectiveness of the coaching supports provided to their clients. One is a lack of sufficient funding, which can limit incubators’ ability to bring in top-tier coaches. Another is limited access to relevant expertise on specific topics. For example, incubators may lack coaches with deep industry-specific knowledge or the ability to guide ventures through highly technical or niche business challenges. Scalability challenges also arise when incubators expand their services to more ventures without increasing the coaching capacity. This can result in inadequate support, overburdened coaches, and inconsistent advice. Furthermore, incubators may face organisational silos that limit collaboration between different coaching teams, reducing the diversity of perspectives available to ventures. Finally, cultural and language barriers can impact communication, trust-building, and the overall coaching experience, especially when supporting international ventures or entrepreneurs from diverse backgrounds.

Policymakers can support incubators in overcoming these challenges and support more effective coaching within the context of incubation by:

• Providing public funding to help incubators to bring in high-quality coaches. Incubators should also be encouraged to have a diverse range of funding sources, including through the formation of strategic partnerships with industry stakeholders.

• Establishing clear guidelines for coaching and requiring incubators to provide information on their coaching process when applying for public funding. A well-defined policy structure will permit incubators to fine-tune and improve their coaching models, ensuring they provide the right support at the right stages of venture development.

• Encouraging the adoption of diverse coaching models within incubators, including one-to-one coaching, group coaching, mentorship networks and collaborative coaching. Structured coaching programmes that combine individual sessions with group interactions offer a balanced approach that supports both personalised guidance and peer learning.

• Prioritising the recruitment of qualified coaches with both technical expertise and strong interpersonal skills within incubators. In addition, policies should support ongoing professional development programmes for coaches.

• Encouraging incubators to track the progress of ventures, assess outcomes, and refine coaching strategies through continuous feedback. This allows incubators to make necessary adjustments and ensure that coaching interventions are effective.

• Requiring incubators to implement clear guidelines regarding confidentiality, fairness, and transparency in coaching relationships. This builds trust, encourages open communication, and fosters a productive coaching environment.

References

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