Role of technology incubators in the development of micro-, small and medium-sized enterprises in selected Southern African countries

Abstract

Micro-, small and medium-sized enterprises are the backbone of economies, in particular in the developing world. They account for over 80 per cent of jobs in Africa, although most are predominantly micro, informal, low value added and needs-driven businesses. As such, they need to be supported in order to develop and be sustainable. Their growth and sustainability are essential for the economic development and growth of the continent’s economies. If these enterprises were more opportunity driven, more innovation focused and higher growth, they would have a significant impact on and would contribute to economic development. Micro-, small and medium sized enterprises face several challenges, including a shortage of business and technical skills, limited access to finance and technology, a lack of market knowledge and regulatory hurdles. Incubators are essential interventions to help such enterprises navigate through these challenges. Incubators take various forms and offer a variety of services, which include the provision of office or laboratory space or a mixture of dedicated services, such as: intellectual property advice; training on implementation modalities for innovative projects; business model concept testing and product insight testing; access to research and development through their proximity to universities and research institutions; prototyping and piloting facilities; access to financing and, in some cases, seed financing provided by the incubators themselves; mentorship and coaching; networking; and industry linkages.