1. An Introduction to Business Incubation
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2. Definition
Business incubators provide intensive, hands-on support and services to nurture young firms, helping them to survive and grow during the start-up period when they are most vulnerable.
The services include
shared office services
access to equipment
flexible leases and expandable space
help with business planning
raising finance
professional services (accounting, IP etc.)
marketing support
mentoring
access to networks
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3. Diffusion of Incubators
USA
1980 = 12
2000 = 800 UK
1996 = 25
2001 = 150 SA
1998 = 0 (Ignoring some “low tech” initiatives)
2002 = 12
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4. Typical incubator… (UK study)
91% of incubators provided physical space to their client companies
31% of respondent incubators are located on science parks; 24% are based on industry parks; and 24% are close to/on a university campus
The average size of an incubator in the UK is 3900sqm (ranging from 65sqm to 13000sqm
Most (64%) incubators would describe themselves as being "sector specific". Of the named sectors, "Technology", "Biotech", "Knowledge-based", "IT" "Software" and "E-business" were the most frequently cited sectors
Management team average six full time equivalents
Most are “not-for-profit”. At the height of the dot.com boom there were an number of commercial incubators – most now closed/refocused.
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5. Aims of Sponsors Create jobs Revitalize neighborhoods
Commercialize critical new technologies
Strengthen local and national economies
Address other development issues (e.g. BEE)
Make money from portfolio companies (??)
Godisa specific – to address:
Outdated technology used by many SMMEs
Poor (or non existent) technology support to SMMEs
Very low entry rates of SMMEs into the productive “value added” sectors
High failure rates amongst start up SMMEs
Poor access to facilities for the testing and promotion of innovative ideas
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6. SA Incubators Technovent (CSIR) Mixed (1999)
Bandwidth Barn (Cape Town) IT (2000)
Innovation Hub (CSIR) IT/Mixed (2001)
Softstart (CSIR) IT (2001)
EgoliBio (CSIR) (Biotech, Life Sciences) (2001)
Zenzele Tech. Demo. Centre (Randburg) Mining (2001)
Acorn Technologies (Cape Town) Medical Devices (2002)
Chemin (Port Elizabeth) Fine Chemicals (2002)
Bodibeng Technology Incubator (Midrand) ICT and Electronics (2002)
Timbali Technology Incubator (Nelspruit) Floriculture (2002)
Upstarts (part of HBD)
Blue Catalyst
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7. Incubator Value Add Office space to rent on flexible terms
Low A PRIORI VALUE High
Bricks and Mortar Incub- ators
Low VALUE A POSTERI High
Virtual
Emphasis
Office space to rent on flexible terms
Office productivity infrastructure
Meeting, training and conference facilities
Access to professional services
Business coaching and mentoring
Access to valuable networks
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8. Choosing an Incubator What Sector are you in? Where is it located?
What are you looking for – office space, advice, tools, the atmosphere???
What are the terms? Office space will probably be “sold” on flexibility rather than price etc.
Speak to other tenants and “graduates”
Who is the management – what are their credentials?
Are they linked to financial institutions (VCs)
What are the programmes, how do you graduate?
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9. Some Contacts www.godisa.net - Charles Wyeth
– Philip Marais
- ?
- Jill Sawers
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