The rate of new ideas and proposals to start technology companies in the Western Cape is growing, despite talk of tough economic conditions, says Bandwidth Barn GM Chris Vermeulen.
Vermeulen acknowledges it is difficult to put an exact number on just how fast the sector is doing or how many jobs it is creating, but there is definitely movement.
“What we have come to realise is that the ICT sector is an enabler for other industrial sectors and so the job creation is there,” he says.
Vermeulen says an indicator of the rate is that 38 proposals were received by the Bandwidth Barn for its “VelocitiY” programme - which is designed to examine the feasibility of turning technology ideas into proper businesses.
“Of those 38 proposals, it seems at least 15 will be turned into businesses, given the right infrastructure and support at the early idea stage,” he says.
VelocitiY is an initiative driven by the provincial government of the Western Cape, which sponsors it to the tune of R900 000.
Nedbank Business Bank has become the latest private sector sponsor to the Bandwidth Barn by donating R500 000 to help foster early stage companies as well.
A key component of the Bandwidth Barn's mission is that it encourages innovation and provides ongoing training and support needed to help businesses overcome the entry barriers to employment, start-up, survival and growing their businesses.
The programme encompasses increasing ICT sector competitiveness through training and skills; supporting ICT sector growth by stimulating and boosting entrepreneurship; and transformation of the ICT sector through SMME & BBBEE enterprise support.
Nirmala Reddy, Nedbank Business Banking's senior manager enterprise development, says: “We are extremely proud to contribute to this important initiative. Bandwidth Barn's success record surpasses international benchmarks in terms of success ratios from a sustainability point of view, and their contribution to the ICT sector is impacting positively on Cape Town's vision to become the 'Silicone Valley' of the Southern Hemisphere.”
The Bandwidth Barn has a two-pronged approach to supporting companies: The first being to lower the physical barriers to starting up a new business and mitigate the risks by ensuring companies are not bound to long-term leases. This is done by providing the infrastructure required for a new business and the benefit of a short-term lease, bandwidth aggregation and reduced office set-up costs at Bandwidth Barn.
The second is a carefully considered and proven business development programme to equip the budding entrepreneur with basic skills to ensure sustainability.
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