مجلة البحوث القانونية و الاقتصادية
Volume 9, Numéro 2, Pages 344-361
2026-05-16

The Role Of Business Incubators And Accelerators In Fostering Innovation And Enhancing The Financial Sustainability Of Startups In Algeria

Authors : Bairech Ahmed . Medjeled Abdelkader .

Abstract

This study analyzes the role of business incubators and accelerators in fostering innovation and enhancing the financial sustainability of startups in Algeria within the transition toward a knowledge-based economy. It assumes that the effectiveness of incubation and acceleration mechanisms directly influences startups’ ability to transform innovation into sustainable economic value. The study show that incubators reduce early-stage risks and build entrepreneurial capabilities, while accelerators enhance growth and investment readiness, increasing survival rates. Innovation emerges as a key driver of profitability, liquidity, and investment attractiveness, with a complementary relationship between innovation and financial sustainability based on continuous reinvestment. Despite institutional progress in Algeria, challenges remain, particularly limited venture capital and scaling difficulties. Strengthening the ecosystem therefore requires a stronger focus on market value creation and measurable financial performance.

Keywords

Business Incubators and Accelerators; Innovation; Financial Sustainability; Startups