Transcript Document

The Seda Platinum Incubator
A Role Model for Business Incubation
In South Africa
Presented by
We make it our business to build your business
Charles Wyeth
PRESENTATION OVERVIEW
1.
Business Incubation in South Africa
2.
seda’s Business Incubation Division
3.
The Challenges for Incubation in SA
4.
The Technology Pipeline & the Innovation Value
Chain
5.
The Seda Platinum Incubator Model
6.
The Narrow vs Broad Focus of Incubation
7.
Lessons Learnt
8.
Future Co-operation
Business Incubation in SA
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Incubators have evolved from Entrepreneurship Support Centres and Business
Hives
There are about 45 Business Incubators in SA
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Most are publicly supported (23 of these receive their funding through SEDA Technology)
Only one fully privately owned incubator remains
In-company incubation is taking place at selected companies
There are a number of business hives that still exist
Many of the other ‘incubators’ in SA are not real incubators by STP’s definition
Seda has 43 Branches providing general Business Development Support Services to
small enterprises
Key Achievements over last 4 years
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SMMEs created - 358
SMMEs Supported - 1148
Job created – 9250
over 80% of SMMEs established were
black owned
Over 80% survival rate of all businesses Incubated
Turnover of All Clients for only the 2007/8 year - > R 105 million
During the 2007/8 year a client sold 25% of business for R6 million
rand
(Incubation Division) Services offered
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Establishment of Technology Business Centres
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Advising on appropriate Business Models to be adopted
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Knowledge management
Policies and procedures
Advisory and consultancy services
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Drafting and implementing business models
Drafting and implementing business strategies to achieve sector support as well as for identifying,
developing and implementing various revenue models
Development and implementation of operating systems
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Facilitate the formation of consortiums
Determine the key focus areas
Assisting Municipalities and Corporates in the establishment of TBCs
Provide exposure to international best practice models
Quality Systems and Standards
Technology Transfer and Diffusion
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Provide funding for SMMEs to acquire the necessary technology and technical support for effective
technology transfer transactions
CHALLENGES FOR THE INCUBATION
PROGRAMME
Outdated
technologies
employed by
SMMEs
Low levels of
productivity
Poor technology
support to SMMEs
Low entry rates of
SMMEs into
manufacturing
sector
Insufficient
levels of value
added in
industry
High failure rates
of start-up SMMEs
Poor access to
facilities for
testing &
promotion of
innovator's ideas
Problems to be addressed
by centres
Low rates of
economic
growth
High unemployment
& poverty particularly amongst
previously disadvantaged
groups
Weak
competitiveness
on global
markets
Insufficient rate
of technological
innovation
Problems to be addressed
by outcome of activities
Problems to be addressed by
longer term impact of programme
STP, THROUGH ITS CENTRES, WILL THEREFORE SEEK TO
ADDRESS THE FOLLOWING ISSUES:
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Enhancing technological and technical innovation
Replacing outdated technology used by many small enterprises
Facilitating access to technology and technical support for SMMEs
Addressing the low entry rates of small enterprises into the productive,
value- added sectors of the economy
Facilitating access to facilities for the testing and promotion of
innovative, ‘technological’ ideas
THE TECHNOLOGY PIPELINE
Results
Basic Research
A new
concept is
generated.
Applied Research
The new
concept is
applied to
a practical
problem.
Development
The application or
technology is tested,
refined & validated. It
may be patented or
licensed.
Source: R Goldsmith, San Antonio Technology
Accelerator
Commercialization
New tech is
incorporated into a
new or existing
product, process or
service.
Positioning of the role-players vis ‘a vis innovation &
technology development chain
SEDA Products and Services (Non – financial)
HEI TTO’s
IF/NRF
SCIENCE COUNCILS
BIOTECHNOLOGY
INNOVATION CENTRES
Thank You
Fundamental
research
(R&d)
STP TT
Interventions
STP TAC
Referrals
Applied
Research
(r&D)
Concept
STP INCUBATORS
Technology
development
Proof of
Concept
Functional
development;
Business development
Prototype;
candidate
product’
Commercialisation
•Internationalization
•Sustainability
•Growth
Approved
Product
CLASSICAL TECHNOLOGY DEVELOPMENT
CLASSICAL INCUBATION
• Project identification and screening
• Evaluation / Due diligence
(Market; technology; business; team; IP)
• Project plan
• Project management
• Finance/funding
• Collaborations/partnerships around the technology
• Incorporation
• Systems and processes
• Legal and accounting
• Reporting
• Business analysis
• Collaborations/partnerships around the
commercialisation and market access
The ‘SA’ Incubation Process
Business Technology Incubation targets growth businesses and provides services for a specific
period or until specific milestones are achieved. It is highly selective. The process is intensive. The
client has to perform. It is predicated on a continuum of development and growth.
Phase I:
Phase II:
Phase III:
Entrepreneur
Development Phase
Enterprise
Creation Phase
Market
Development
• Skills
Development
• Facilities &
Services
Business
Business
Technology
Technology
Incubator
Incubator
• Technology Transfer &
Consultancy Services
• Advisory Services
• Networking &
Linkages
• After-Care Service
Critical Linkages
Business Linkage,
Export, Statistics,
Info
University – / Business Schools’
Large Companies
VC, Seed,
Angels
External Service
Providers
Research Org’s
Government
at all Levels
(Nat, State
and Local)
Incubator/
TBCs
SMMEs
Association
FET Colleges
International Good Practice Orgs
to be adapted
Critical Linkages (The SPI Example)
Business Linkage,
Export, Statistics,
Info, …
Ndjadji Plat.,
Plat. PTSA
University – / Business Schools ’
WITS. Univ.
Large Companies
Anglo Plat., Northam
External Service
Providers
Specialist Trainers and
designers
VC, Seed, Angels
Plat. Metal Loan
Research Org ’s
World of Platinum
Ndjadji Platinum
SMMEs Assoc.
NW Bus. Assoc.
Government
at all Levels
(Nat, State and Local)
NW Prov ., dti,
Rustenberg . Municip .
International Good Practice Orgs
to be adapted
Seda Technology
FET Colleges
Orbit College
Direct Business linkages
Private Sector, Mining Houses, National and
Provincial Government Representation
Platinum Trust
seda Platinum
Incubator
World of Platinum
Marketing
(for profit)
Responsibilities
Flow of product
Flow of returns
Manufacturing
Training
Incubation
Mentoring
Diagram : Organagram reflecting corporate position of Section 21
The “inside picture”
SPI: Key Outputs for the first 2 years
 30 potential entrepreneurs trained
 8 businesses registered
 10 businesses/entrepreneurs provided with ‘metal loans’
from the Metal Loan Fund
 Outsourcing contracts with 2 ‘retailers’ secured
 4 internal sales secured
 45 items sold locally
 38 people in gainful, meaningful employment
NARROW IMPACT VS BROAD FOCUS
Supporting Innovation and Entrepreneurship
Lessons Learnt over the past 7 years
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Business Incubation can be expensive
Always manage the expectations of your sponsors (eg. Government) – most
of the time they are unrealistic
Find the right people to drive your incubators
The private sector will always support publicly – funded programmes that
work!
Innovation and technology commercialization is a time-consuming process
and must not be ‘rushed’
Everyday new lessons are learnt!!!
Future Co-operation
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Peer Review Mechanism must be implemented and actioned as a
matter of priority
Business 2 Business linkages must be properly unpacked and
‘projectised’ – with clear targets!
Forum for exploring better commercialization of technologies must
be launched
Technology Transfer between countries needs to be explored
further
Virtual “Technology-shop” Portal must be launched
Personnel skills transfer and capacity building programmes
between the three institutions must be supported
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Thank you