The Sunday News
Dr Bongani, Ngwenya
THIS week’s economic focus column is a follow-up of the one which was published on 27 December last year’s precept on the role of universities and tertiary institutions in Public Private Partnership (PPP) initiatives.
My argument that our universities and tertiary institutions are very passive participants in the economic development of our country still stands as long as we have not yet addressed the structural issues surrounding the industry-university partnership initiatives.
Most of our neighbouring and fellow Southern Africa Development Community countries, especially South Africa have a very strong government supported industry-university partnership policy. As a result, their tertiary institutions play a critical role in economic development through business incubation strategies.
There has been a concern that our universities churn out graduates that find themselves being able to fit well in the labour markets of regional countries and even international labour markets, however, not relevant to our own domestic market. The argument is that our tertiary institutions, instead of creating entrepreneurs, create typical employees, that are well disciplined and employable.
Below I am exploring the concept of “Business Incubation” that South African universities and universities in the developed world use as vehicles and instruments for participation in the economic development of their host countries through industry-university partnerships that have evolved beyond the traditional role of being research universities to centers of competences that help tackle social challenges and drive economic development and growth.
What is Business incubation? — the University of Pretoria experience
According to the National Business Incubator Association (NBIA) of South Africa, an incubator is “a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services.
These services are usually developed or orchestrated by incubator management and offered both in the business incubator and through its network of contacts.”
To drive the point, I will explore the University of Pretoria’s business incubation centre, I have been following very closely, as an example and a cure our own universities here can take, with the support of the government, especially in coming up with a policy like the one on Special Economic Zones, which will structurally empower universities in this country to strengthen the “industry-university partnerships” or ‘collaborations’”. I believe the business incubation model can be easily replicable by our own universities in Zimbabwe.
The University of Pretoria’s business incubation primary aim is to help the university students refine and streamline their business ideas into feasible business opportunities. First and foremost, the incubation centre assists students with the enhancement of their ideas — this is done mainly through market research and a preliminary Business Model Canvas. The business ideas are then further developed by means of individual coaching and mentorship as well as general classes which the students are expected to attend. The students have the opportunity to present their business ideas to experienced entrepreneurs who then provide feedback on each presentation with the aim of providing useful tips on how to improve the students current proposed offering. Other offerings throughout the mentorship programme include:
· The transfer of sound business practices through additional training.
· The exposure to networking opportunities.
· Gaining knowledge and networking opportunities through industry/entrepreneurs as guest speakers.
· Additional mentorship sessions through experts.
The University of Pretoria incubatee requirements: The incubatee must be willing to work hard, show a positive attitude, display an entrepreneurial mind and passion, be committed, conceptualise a marketable and unique business idea and concept, must have/be busy with a tertiary qualification preferably, must have some work experience preferably, and must be living in South Africa studying at the University of Pretoria unless business is in the growth phase.
About the business idea: The potential incubatee should demonstrate a sound understanding of the technology and idea behind the product/service they want to develop, the business idea must be unique, they must have conducted prior market research on the product/service, show adequate knowledge about the product/service, and must be willing to invest time and money into the idea.
The type of industry that the University of Pretoria incubates: The university strategically selects the following type of industries for incubation, i.e. biotechnology, innovation and communications technology, green technology, economic and management sciences, engineering, and agriculture.
University of Pretoria Business Incubation Programme layout/model (UPBI)
Idea Generation: the initial step of the UPBI programme revolves around idea generation and refinement. This is done during first few meetings between the incubatee and the UPBI mentor.
Business Model: after the idea has been refined to a streamlined business concept it is expected that the incubatee develops an initial business model canvas. This includes defining the proposed target market as well as initial market research.
Feasibility: feasibility is tested based on the market research done by the incubatee. Areas covered in feasibility include reviewing the market, product service, industry and competitors. These findings are also used to refine the business model.
Coaching and Mentoring: Incubatee attends one-on one mentorship sessions to assist and lead the idea development phase, and the incubatee is also connected with an expert if need be.
Pitching and Presentation: finally, the incubatee receives assistance in terms of business idea pitching and presentation, with practical experience given at “final presentation”.
In conclusion may I reiterate that the Honourable Minister Professor Jonathan Moyo in his round the robin familiarisation tour of tertiary institutions in the country has lamented that the South African universities are absorbing the best of the academics of this country.
Most of our academic experts and scholars are engaged in these South African universities business incubation centers. The Minister suggested that this trend needs to be reversed.
May I submit that the best way of reversing this trend is for our universities to engage in this developmental oriented “industry-university” partnership and collaboration.
However, like what I said last week, this requires a government support policy that would make it mandatory for our universities to actively participate in the economic development, starting with the identified Special Economic Zones.
Government could assign some of our universities into these Special Economic Zones for business incubation.
In my opinion this will promote entrepreneurial development and focus that our country requires at this point in time.
Dr Bongani Ngwenya is a Bulawayo based Economist and a Senior lecturer at Solusi University’s Post Graduate School of Business. He can be reached at [email protected] / [email protected]
