Accelerating Business Incubators: A framework for start-ups in Botswana Pt II

We also have the private sector and the public sector coming in to support this practice in advancing socio-economic growth of potential entrepreneurs mostly found in the SMEs sectors both for developing and developed economies. The basic aim of business incubators as is suggested globally and in Botswana in particular should be gendered on among others:

• Funding strategies and sustainability of start-up entrepreneurs

• Training and development of upcoming entrepreneurs

• Technology transfer and e-commerce

• Supports acquisition of business knowledge in partnership mode with formally established businesses

• Building growth formalisation bridges, a perspective focusing growth trajectory of entrepreneurs -from small to medium to large enterprises

• Introduces the entrepreneurs to business networks and widen the very networks in a sustainable manner

• Monitoring and appraisal of entrepreneurship ventures, all meant to determine those that needs further funding and other support mechanisms until they are able to stand on their own

• Oversight on ownership and management of the ventures-mainly focusing on equity structure of the selected entrepreneurs ventures

• Provide accelerated investment to potential entrepreneurs

Lessons learnt on Incubators from other countries across the globe

Let me take you through some experiencers of other countries on the issue of business incubators as a means to advance socio-economic development through putting in place support mechanisms and policies that Zero-in on supporting start-up entrepreneurs.

A few lessons can be learnt from others, if we correctly and contextually benchmark ourselves as a country. In Brazil, incubation development path clearly shows that the majority of incubators are supported by Universities linked to the business sector and is financed by a number of stakeholders.

What is the status quo of universities support system of Business Incubators for entrepreneurs in our case? China, India, Brazil, South Africa, Israel, Sweden and Finland runs multi-annual national plans and shows to support Science and Technology development-advancing the adoption of a strong incubator culture for socio-economic reasons In Netherland, a distinctive feature of innovation is the concept of an incubator representative in each university department. The creation of spin off companies is significantly handled by these selected agencies.

Malaysia’s economic growth has been where it is through supporting for example business incubators and supporting the electronic industry where international companies have located since the 1960s in free zones, producing primarily for export. In India, in 2019, 13 central government ministries and departments were supporting incubators in the country, with an estimated total of 284 incubators that were identified and these included both government and private support3d incubators In China, in the same year as India, the China Business Incubation Development Report, in 2019 reported that they were around 11 808 businesses incubators serving a total of 620 000 start-ups (206 of them being technology-based) employing about 1.514 million people.

Five solid recommendations to accelerated adoption of Business Incubators

While my recommendations below are not exhaustive, they do, at least set and put in motion debate on choices and options available in adopting accelerated business model(s) for SMEs–post COVID 19.

Business promotion mechanisms-the accelerated Business Incubation Philosophy embedded in both business and Philanthropic platform model is one such that needs closer look. Let us look at the five-point recommendation cluster that further advances and strengthens existing entrepreneurial systems and schemes put in place by our dedicated, committed, focused Government in Botswana

• Firstly, the ministry responsible for entrepreneurs and the sister ministries and all other institutions , including CEDA and LEA, should brace up for accelerated Incubator modelling to deal with start-ups and potential entrepreneurs who will have a significant influence on the growth trajectory of Botswana economy and the region at large. Whether at individual or societal levels, entrepreneurs cannot be left alone –their success at whatever level is symbolic to the success of the nation.

• Secondly, a vibrant and accelerated National Incubation Support Program (new and existing) must be publicised, adopted and implemented at an accelerated pace. The present government and all supportive institutions can obligate itself, if it so chooses to coordinate incubation within SMEs support policy all under a National Incubator Development Framework. In each of the provinces in the country and in each of the cities and towns, the need to establish Incubator Development Units, under Small Enterprise Development Agency, cannot be over emphasized. We cannot discuss everything in this article but will leave space for further information sharing on the roles of these units and agencies.

• Thirdly, the responsible ministry [entrepreneurship] and other closely connected departments need to lobby for the creation of a comprehensive infrastructure based on the nature of science and technology and the diverse industrial facets across the country. Modern techno-parks and, business incubators fully equipped need to be put in place and linked to research and development centres and universities.

• Fourthly, a coordinated Industrial cluster approach is required to advance the growth of entrepreneurs across all industries within the armpits of SMEs sector. Cluster business model entails grouping entrepreneurs whose businesses are similar or are found in the singular or multiplier value chain and get funded jointly. In my PhD thesis, I proposed and articulated deeper and wider on the adoption of the Business Clusters for Women Entrepreneurs in the SMEs and readers and interested benefactors to this article can borrow more from the business cluster theory and apply it to SMEs in Botswana.

• Fifthly there may need to consider restructuring local economic structure by providing a mix of incubator versions, diversified product portfolios with full government support for the small and medium entrepreneurs focusing on manufacturing sector, construction, fishing in Ngamiland for example, Livestock farming intensification in Central district, Solar technology and salt(ex) tech production in the Kalagadi area, Logistics and Supply, Retailing, Motor car manufacturing and Assembling and ICT in line with the fourth industrial revolution. In selecting which businesses to incubate, the responsible authorities should use a criteria where entrepreneurs chosen have businesses that are already of interest to the national/Regional and global alignment, and in our case –focus on businesses that are within the Vision 2036. I further propose that the following businesses be given accelerated prioritisation under the accelerated incubation programs

• Post COVID-19: Technology transfer, including ICT, creative industries, Manufacturepreneurship, agri-business focusing on vast land usage in Pandamatenga for example and other outlying fertile lands (agri-futuristic lands) and fashiopreneurs.

Conclusion

I conclude my article on incubation by further reiterating that Botswana Government is one of the most dedicated governments in the Sub-Saharan region when it comes to support entrepreneurs and businesses across the country. Vision 2036 and the basket of policies and set up institutions is testimonial to this commitment.

I guess the same commitment possessed by government filters down to the beneficiaries and other players in the private sector. Together, the synergic effect will see the country as a role model of how SMEs can be grown to levels of self-sustenance. What is further critical is to accelerate, revisit critical policies [Knee-Jerk focus) and redefine policy direction in line with the Post-COVID 19 mentality that has grabbed the whole world through embracing sustainable Post COVID 19 Business Incubators for entrepreneurs most housed in the SMEs socio-economic sector.

We cannot continue to apply wholesomely the same business formulae we used to use pre-COVID 19, we cannot continue to use the same strategic framework that we designed Pre-COVID 19, neither can we continue to rely on the same skills basket we had before the pandemic. I can assure, the public and those in the realm of policy-shaping that armed with a capital-efficient portfolio approach-where the right venture and Entrepreneurship development process and blue print leverage present assets possessed by entrepreneurs themselves and all other stakers with direct interest in the promotion of local entrepreneurship at practo-levels, chances of failure can be avoided and or mitigated.

Let me pen off by reiterating a very important and fundamental pillar of entrepreneurial success. If we are to accelerate and create sustainable entrepreneurship, the establishment of incubators need to be strongly aligned to Vocationalisation of education and training, later alone directly linked to Research and Development funding scenarios.

This tripartite entrepreneurial development framework (Incubators, Vocationalisation of education and training, and Research and Development) is fundamental to entrepreneurs’ success and reduces chances of failure, at least during their start up years. Policy formulation and implementation, consensus, political will, stakeholder engagement, incentivication programs, continuous environmental scanning and overall management of the entrepreneurship ecosystem in Botswana is critical, and this will advance and place entrepreneurs at the centre of inclusive economic development agenda, making Vision 2036 more inviting, opportunity driven and closer to accomplishing.

In my next article I will talk about the role of universities and institutions and what they need to do to actively participate in creating Innovation hubs and Business incubators as a way of partaking in national economic development.

I will also bring in the concept of creating entrepreneurial universities, as enunciated in one of my presentations at SARUA Conference on Innovation during pandemics-published in World Newspaper on 03 June 2021 (http://www.universityworldnews.com/).

*Dr Gwakwa is currently a Business Management & Entrepreneurship Lecturer in the Faculty of Commerce, BA ISAGO University. He writes in his personal capacity. This is the final instalment of a two-part article