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Incubating Business, Growing Profits
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| 10. Incubating Business, Growing Profits By Tshepo Motloung |
| In various centres throughout the country, business is getting a
boost through Godisa, a development programme that assists inventors to
optimise technology and improve the competitiveness of products and
services. Zenzele technology demonstration centre, based at Mintek in Randburg, Johannesburg, has successfully transferred technology to a small mining company, the Springs PGM Project, which now generates an annual turnover of R12 million. Zenzele has also assisted small, medium and micro enterprises (SMEs) to mine diamonds, as well as to produce value-added products from primary mineral products, such as jewellery, household articles and decorative items. Zenzele is an easily accessible centre that aims to reduce business failure by providing technology and services appropriate to the needs of smallscale miners. The centre has technical demonstration facilities for large and small-scale processing facilities for a number of commodities and assists organisations to access finance or to develop a business plan. Small-scale miners from Mpumalanga, Gauteng, KwaZulu-Natal, the Northern Cape including Namaqualand, the Free State and the Northern Province, have benefited from centres such as Zenzele. The centres’ focus range from biotechnology, life sciences, software development and embedded systems, to fine chemicals, smallscale mining and hydroponics for cutflower export. The Godisa Programme, which boasts eight centres that focus on the enhancement of technological innovation and the international competitiveness of South African SMEs, is funded by the Department of Science and Technology, the Department of Trade and Industry and the European Union. The centres’ focus range from biotechnology, life sciences, software development and embedded systems, to fine chemicals, small-scale mining and hydroponics for cut-flower export. Godisa has successfully implemented technology transfer in South Africa and as a result, the Department of Trade and Industry has ceded four of its technology programme centres in various sectors to Godisa. The centres are the Middleburg Stainless Initiatives, the National Fibre, Textile and Clothing Centre, Downstream Aluminum Centre for Technology and the Furniture Technology Centre. To date, 1,266 SMEs have been established and more than 2400 jobs created. The former number includes more than 800 tenants housed either as incubates or technology demonstrations. The addition of the four centres from the Department of Trade and Industry will further increase technology capacity and employment opportunities. Two more incubation centres, Biodiesel and Emerging Contractors are on the verge of becoming operational. The Biodiesel Incubator will support the establishment of smallscale farmers and entrepreneurs in the production of biodiesel fuels. It is estimated that several SMEs will be created to handle the production and distillation processes. Limpopo has been identified for the establishment of this incubator. The Emerging Contractor Incubator will support the growth and development of emerging small-scale building contractors and has significant direct and indirect job creation potential. Timbali Technology Incubator, situated in the Mbombela region in Mpumalanga, is handling the largest cut-flower project in Africa and already major developments in floriculture have been achieved. An average monthly nett profit of R12 000 is currently generated from cultivating vibrantly-coloured Maxi Gerberas. The flowers are already exported to Mozambique, with plans to expand this market to the Northern Hemisphere. According to Charles Wyeth, the Chief Executive Officer for Godisa, research conducted by the European Union has concluded that one of the leading strategies to enhance the overall survival rates of SMEs is by means of business incubation. The study indicated that “the survival rate of firms reared in an incubator environment was significantly higher than the business success rate amongst the wider SME community”. In fact, the research further indicated that “the effectiveness regarding incubation in OECD countries show that the survival rate of incubated firms ranges from approximately 80 to 85 percent.” Wyeth said research suggests that business incubators are very effective methods of promoting knowledgeintensive, new technology-based activities. “There is strong evidence to suggest that incubator initiatives help promising entrepreneurs launch their business and succeed. Incubation can create the stimulation that is needed to foster economic growth in a developing country,” he said. |
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Nominations of potential candidates for the Technology Innovation Agency (TIA) Board of Directors
