eBusiness Weekly
Nokuthula G Moyo-Muparuri
The past three articles have discussed policy, finance and culture design.
This article is about support design. The support design should ensure that the support institutions and organisations are created to ensure that the entrepreneur does not face any challenges when seeking assistance.
The start-up must have access to the necessary services to function effectively. A variety of institutions, as well as organisations, assist the business to create and expand as well.
These institutions should be focused specifically to support start-ups in their various stages of growth and ensure that they are assisted with whatever challenges they face.
There is need to understand that the start-up is at the front and centre of all the activities that should be taking place. The support design solutions need to be entrepreneur centric.
This article will discuss the following support organisations: entrepreneur support organisations; professional service organisations; event organisers; funding providers; media organisations; education support; infrastructure support; supportive Government policies; private sector organisations and last but not least civil society organisations support
Entrepreneurial support organisations
Entrepreneurial support organisations play a critical role for the start-up community by providing a range of resources and support to entrepreneurs including office space.
Support organisations help founders sharpen their businesses. These institutions include science and technology parks, incubators, accelerators and start-up centres.
Incubators and accelerators often offer a physical space where start-ups can establish their offices. Co-working spaces assist start-ups mostly in the bootstrapping stage as they do not have the funds to afford their own space.
Science and technology parks provide infrastructure and professional services within a defined area to higher education institutions, scientific research and innovation organisations with the aim of connecting them and applying new technologies as quickly as possible, creating and placing new products and services on the market.
There is need to build this kind of support for start-ups. Science and technology parks are strong institutions with superior Scientific and research infrastructure meant to increase the level of commercialisation of scientific research through spin-offs and start-ups.
The founders of start-up companies are often innovators who turn their specific knowledge into a product or service that did not exist on the market until then, but the problem is that they lack the basic resources to start a business.
One of the possible forms of support in such situations are business technology incubators and accelerators.
Specifically, since start-ups in the initial stages of business lack resources, experience and relevant contacts, incubators and accelerators provide services that help them overcome the initial obstacles in starting a business.
These obstacles include space, financing, legal, accounting and other services that are a prerequisite for business and development.
The process of incubation itself represents support for young start-ups to pass the initial development phase as successfully as possible as well as the necessary skills for further growth and development.
The primary role and goal of business technology incubators is to encourage the creation of successful start-ups through a set of services, to make them financially liquid and self- sustaining upon leaving the incubator.
The business technology incubators are an instrument for stimulating the growth of employment, Technology Transfer and Innovation.
There is also need to develop a network of provincial innovation start-up centres. Start-up centres can be used as spaces where start-ups meet and exchange ideas while getting advice from experts.
The centres can also provide access to the resources and information required by Start-ups to assist them in establishing their enterprises.
Through the development of such centres, the conditions are equalised for individuals and institutions openly in the field of innovative activity which contribute to economic development of the country.
Professional service organisations
The start-up ecosystem must have access to the necessary services to function effectively. These services include legal, accounting, banking, marketing, mentorship and consulting services. Professional service organisations can offer services which start-ups cannot afford in their formation stages.
Start-ups cannot afford legal, intellectual property protection, mentorship, accounting and consulting services.
Starting a business is very challenging, so there is need for guidance along the way to ensure success and mentors should be available to guide the start-ups to find their way. Mentors provide essential guidance and support to the start-ups by helping them overcome challenges and make better decisions.
Event organisers
Start-up events and initiatives bring the community together and provide opportunities for collaboration and networking.
There is need to develop a lot of events such as hackathons, innovation fairs, business plan competitions, innovation challenges to develop solutions to national challenges.
Innovation fairs, like trade fairs provide a platform for local entrepreneurs, investors and business leaders to display their offerings, network and collaborate.
Hackathons are events where computer programmers gather to develop new approaches to solving problems or completing large projects that require collaboration.
Hackathons bring participants together to generate and develop novel ideas and products and solutions in a time efficient manner.
Business plan competitions enable Start-ups to present their business proposals to a panel of judges, receive mentorship and feedback and have a chance to win funding or prizes.
The Start-up ecosystem requires a community of people who are passionate about Start-ups and are willing to help them succeed. Start-up communities help founders connect, share ideas, and keep each other motivated. Communities typically host meet-up events, too.
The events expand the network of like-minded people who then influence the overall success of the local ecosystem.
The events offer an opportunity for funders, experts and mentors to meet Start-ups and help them succeed.
Furthermore, developing strong network of peers helps Start-ups get valuable tips on how to navigate the challenges and capitalise on new opportunities, allowing them to thrive in an ever changing landscape.
There is need to develop local connectivity among start-ups, investors and experts. Local connectivity means developing relationships that are mutually beneficial.
Developing stronger relationships, especially relationships with Start-ups in the ecosystem can influence the Start-up to perform much better than those who do not develop relationships. So Start-ups perform much better if they are connected.
For the development of the Start-up ecosystem, it is important for Start-ups to develop professional relationships, cooperation, a culture of knowledge sharing among themselves and other stake holders of the Start-up ecosystem.
Developing relationships brings a sense of community that is reflected in the assistance of Start-ups by investors and experts.
Funding Providers
Securing proper funding from the start is essential for launching a start-up venture ensuring its longevity.
Funding organisations range from angel investors, venture capital firms, government entities and foundations.
These are an indispensable part of the Start-up ecosystem. Funding organisations evaluate Start-up ecosystems and then provide financial back up for those that have the best likelihood of succeeding.
So they play an essential role in stimulating the creation of new businesses by fuelling economic growth, but also foster an atmosphere that is conducive to Start-up activity and spurring the development of innovative products and services.
Funding providers learn by interacting with Start-ups. Investors learn to understand which types of Start-ups are most likely to succeed and by enabling radical growth, also decrease the number of large scale exits. This in turn pumps new capital and knowledge into the ecosystem creating a positive feed-back loop.
Media Organisations
Media organisations play the role of disseminating information to the general public through newspaper, magazine, other publications, radio, television or other medium of mass communication.
The Media organisations have a role to unite the ecosystem by telling a cohesive and realistic story about the Start-up ecosystem.
The media must help unite the Start-up ecosystems fragmented scene by providing a holistic story of development from all ecosystem members.
In designing the Start-up ecosystem there is need to understand that all the different parties are interdependent. So there is need for media coverage of all the different member so that they all work together as one unit without leaving one member.
Private Sector Organisations
The private sector includes companies owned by locals, companies owned by foreigners and subsidiaries of multinational companies.
The private sector can create an enabling environment for start-ups by providing access to finance, mentorship, training and business development services. It can provide financial support to Universities and to Incubators.
It can also collaborate with University on joint programs that could lead to the development of new products and services. The Private Sector can also become suppliers or clients of products and services produced by Start-ups.
Education Support
Educational institutions play a pivotal role in the ecosystem by providing a pool of talented individuals who can bring fresh ideas and new perspectives to Start-ups.
The educational institutions offer various programs and resources to help entrepreneurs develop the skills they need to be successful by providing access to knowledge; research and expertise that can help Start-ups grow and thrive.
Additionally many universities have incubation and accelerator facilities that provide mentorship and resources helping Start-ups to get off the ground and grow.
Through these programmes students are exposed to the entrepreneurial mind-set since they get the chance to work on real projects with Start-ups.
Infrastructure Support
A Start-up ecosystem requires the infrastructure necessary for businesses to operate. This includes the physical infrastructure such as office space, meeting spaces, and the digital infrastructure such as networks and bandwidth.
There is need to invest in expanding the digital infrastructure by improving internet connectivity, and reducing the cost of data. This will enhance the Start-up digital ecosystem, foster innovation and attract investment in the technology sector.
Supportive Government Policies
Government agencies regulate business commerce, industry and trade. They can provide invaluable support for the development of Start-ups. Local government agencies focus on fostering industrial growth and encouraging workplace creation in their communities.
Start-up ecosystem builders need to comprehend how local government regulations can impact the operations of the Start-up community and how to capitalise on them to generate opportunities for expansion.
Connecting with local government agencies, can avail many resources such as business license assistance, fiscal assistance such as grants, awards and tax credits. This can help build a sustainable pipeline for economic development and propel the growth of the local Start-up ecosystem.
The Government needs to create Government policies that are favourable to Start-ups. They can set up Innovation Districts by selecting one District per province to be an Innovation District.
Innovation Districts are urban landscapes that promote collaborative ecosystems where Research and Development strong institutions, forward thinking companies and other private actors develop integrated strategies and solutions to develop thriving innovation ecosystems.
These areas attract start-ups entrepreneurs and business incubators. These Districts blend economic, physical and networking assets in a way that encourages connection.
They are blurring lines that divide where people work, live and play, and are becoming crucial pieces of local and regional economic development strategies.
They are typically tied to at least one anchor institution, such as a Research Universities or Research-oriented Medical Hospitals that partner with the District become known as the anchor institution.
The institution’s Research and Development focus and access to capital provide a strong foundation for academic-industry collaboration that can lead to new businesses and drive job growth.
Mixed-use spaces areas are where people can live, work and play. They offer housing, office, amenities and retail spaces, ultimately encouraging inclusion and the formation of cross-industry relationships and partnerships.
Use repurposed land or structures.
Civil Society Organisations Support
The role of Civil Society Organisation is to complement government programmes. Civil Society Organisations can have a say and put a Multi-stakeholder and human centric approach on the Design and growth of the Start-up ecosystem.
The Responsible Government Ministry can create a formal channel for Civil Society participation by establishing a formal relationship with an umbrella organisation representing key civil society actors.
These channels can then be supported by establishing Forums for capacity building, data management, grant management and advocacy.
These multi-Stakeholder dialogues provide a structural approach to engaging with Civil Society Organisations. They also provide a mechanism for Civil Society Organisations to be actively involved in both the design and growth of the Start-up ecosystem.
Nokuthula G Moyo-Muparuri is a lecturer at the Midlands State University in the Faculty of Business Sciences. She is also the Founder of the Institute of Applied Entrepreneurship. The mission of the Institute is Business Skills Development and Start-up Ecosystem Development. The Institute has started an initiative called Start-up Zim which is meant to provide all vital information and assistance to help Start-ups. The Institute is inviting organisations and individuals willing to support Start-ups to collaborate in assisting Start-ups. Those interested can contact the Institute on +263718747621.
