How can Incubators help Youth? Atul Padalkar BizFarm July 2012

Introduction BizFarm Corporate Film

Key Challenges High Failure rates of SMMEs (80%+) Low Education / Skills base – Maths & Science in particular Mindset Institutional Arrangements Regulation/s & RedTape Industry Support and Buy-in Business Incubation improves SMME Success rate (NBIA)

Arab spring A revolutionary wave of demonstrations and protests occurring in the Arab world that began on 18 December 2010 Protests considered to be inspired by the Arab Spring have taken place on every inhabited continent, with varying degrees of success and prominence

Economic Literacy Financial Literacy Emotional Literacy New Venture Expansion New Venture Development Developing Entrepreneurs

Supporting BEE SMMEs Mindset

The ‘BizFarm’ Concept A Partnership of Stakeholders Multiple Sectors Supporting Entrepreneurs will grow them Growth of Entrepreneurs will create jobs Growth of jobs will grow the economy Sustainable in the Long term

Support Services Office Space – Meeting Rooms, Reception, Internet, Office Services – Virtual Office – Resident Office Coaching and Mentoring Access to Finance Market Access Support Support Networking Opportunities Business Skills Training

Key Learnings Working Principles Sustainability is very important for Incubators “Free” is very expensive Users will pay for good value – Bizfarm Office pm Virtual : R 250. Resident R 999 – Tea/Coffee: R2.50/cup. actual Employment is created by successful SMMEs Main Determinants: – Lean Setup Costs, Lean Operating Costs Way Forward: Partnership

Way Forward How can we create more employment through Business Incubators?

Thank You Contact us at: www. bizfarm.co.za Telephone: , Che Guevara Road Glenwood Durban 4001

High Unemployment Rate There are 1.1 billion people – 1 out of every 3 people in the labour force – who are either unemployed or living in poverty Youth unemployment rose from 11.7% in 2007 to 12.7% in 2011 Small enterprises account for 60-70% of jobs in most countries Studies indicate Incubators have a positive impact on increase in number of Businesses and jobs

Youth Ticking time bomb Mr Vavi said last night unemployment — especially of the youth in SA — was a ticking time bomb. Urgent strategy is needed to deal with unemployment to prevent Tunisia-style uprising.