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
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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
Developing Entrepreneurs
Global
Market
Access
New
Venture
Expansion
Economic
Literacy
New
Venture
Development
Financial
Literacy
Emotional
Literacy
Supporting BEE SMMEs
• Mentorship
• Innovative
Financing
Finance
Skills
Mindset
Markets
• Enterprise
Development
Workplace
• Incubator
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
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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. Telephones @ 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: 031 201 7444
357, 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.