2026 State of the Industry Report from Make Startups Institute

3. SWOT Analysis: Weaknesses

The weaknesses identified in the responses point less to a lack of activity and more to a lack of alignment. Many founders encounter an ecosystem that is busy but difficult to navigate, with overlapping programs, inconsistent handoffs, and support that often ends before companies reach meaningful traction. At the same time, the organizations responsible for delivering that support frequently operate with thin staffing, unstable funding, and limited long-term capacity. Respondents also noted that some programs remain shaped more by funder expectations than by the practical needs of founders, which can lead to “startup theater” instead of sustained company building. These challenges are compounded by persistent barriers to access across geography, race, immigration status, and network proximity, highlighting that the field still has work to do to ensure entrepreneurship support is both coherent and broadly accessible.

Weaknesses word cloud
Weaknesses word cloud

Founders still face a fragmented and confusing support landscape

The most common operational complaint is not the absence of activity, but the absence of coherence. Founders are often asked to navigate overlapping programs, unclear handoffs, and contradictory advice, which creates a hidden tax on entrepreneurship.

Sierra Martin, Spark Macon
Sierra Martin, Spark Macon

ESO capacity is often thin, unstable, and underfunded

Respondents repeatedly note the fragility of the organizations expected to hold the ecosystem together. Small teams, low salaries, reliance on grants, and dependence on a single campus champion or funder make support systems brittle.

Jim Roberts, Network for Entrepreneurs in Wilmington
Jim Roberts, Network for Entrepreneurs in Wilmington

The field overproduces top-of-funnel activity and underinvests in sustained support

Several respondents point to a common pattern: abundant events, competitions, and introductory programming, but fewer resources for deeper commercialization help, investment readiness, customer traction, mentor density, and long-run company building.

Darlisa Diltz, Foundations Entrepreneur Development Company
Darlisa Diltz, Foundations Entrepreneur Development Company

The ecosystem does not always organize around what founders actually need

Respondents mention poor listening, weak customer discovery by ESOs, trend-chasing, startup theater, and narrow definitions of what counts as a 'real' startup. Together, those comments suggest that some support models are still more funder-shaped than founder-shaped.

Debbie Irwin, Lighthouse Network
Debbie Irwin, Lighthouse Network

Access remains uneven across race, immigration status, geography, and network proximity

Inclusion appears in the source material not as a side issue, but as a structural weakness. Respondents explicitly name barriers facing founders of color, immigrants, rural entrepreneurs, and builders outside established networks.

John Dearie, Center for American Entrepreneurship
John Dearie, Center for American Entrepreneurship
Article Details

A summary of surveyed weaknesses:

  1. Founders still face a fragmented and confusing support landscape
  2. ESO capacity is often thin, unstable, and underfunded
  3. The field overproduces top-of-funnel activity and underinvests in sustained support
  4. The ecosystem does not always organize around what founders actually need
  5. Access remains uneven across race, immigration status, geography, and network proximity
Category 2026 State of the Industry Report
Curriculum all
Created 2026-03-11 18:01:55
Last Updated 2026-03-11 18:01:55
IMI Provider CofounderOS
Published Make Startups Institute
Make Startups Institute
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SWOT Analysis: Strengths
SWOT Analysis: Opportunities