Seven out of the 10 initial UUNET Bandwidth Barn Launchpad companies which started the black ICT entrepreneur development programme in August last year graduated today as financially stable and viable businesses able to survive outside the programme.
In contrast to local statistics, which show up to 70% of South African businesses fail in the first two years of operation, Launchpad`s 70% success rate after one year proves that this programme provides a winning formula for increasing small business survival.
The Western Cape`s ICT sector generates the largest number of new job opportunities after tourism, but potential for the IT sector to confront issues such as poverty and empowerment has never been fully exploited. To address this, CITI, the Western Cape Provincial Government and UUNET launched the pilot Launchpad programme in 2004.
According to the Global Entrepreneurship Monitor (GEM) report, factors limiting the success of small businesses in South Africa are finance, education, culture and entrepreneurial capacity.
Masedi Molosiwa, executive director of CITi says the success of Launchpad is primarily because the programme was run out of the UUNET Bandwidth Barn, which provided a practical learning space that minimised and in some cases, neutralised the four factors.
"Starting a business is terrifying enough, especially when having to do it on your own. It is no wonder so many companies fail early on when one looks at the isolation in which many work. The Bandwidth Barn is a haven for small companies and when you add a structured and managed business skills course which includes coaches, mentors and trainers there is even greater chance of success."
The start-ups clearly felt the benefit of being in the barn as all intended remaining even after graduation.
Thembinkosi Semwayo, MD of Knowledge Crucible, one of the graduating companies says, "When we started all we had was a good idea and passion, but no idea how to make it happen. Launchpad gave us support, guidance and motivation, turning our idea into reality."
All participants felt that coaching and mentoring were important to the programme`s success. "It helped us turn theory into practical steps," says Semwayo. "The business coach taught us how to take full responsibility for setting and achieve our goals, while our mentor advised us on how things were done in the real world. While we still made mistakes, they were fewer and less disastrous because of the strong network of support."
When discussing the programme`s future, Molosiwa says, "Based on our experience of the pilot we will make small changes such as introducing coaches and mentors from the word go rather than waiting until phase two and also extend the programme from nine months to 12 months."
The seven graduating Launchpad companies are:
* Delta Computer Solutions: Data recovery services
* iDJ: Provision of video jukeboxes to taverns and shabeens
* JT IT Solutions: Website design and software development
* Knowledge Crucible: Knowledge management software products and services
* Rylurx IT: Football domain development
* Ubhedu Business Solutions: Business solutions: IT support services
* UniNet: Wireless Internet Service Provider (ISP)
Individuals and companies who are interested in being involved in the 2006 programme can email odette.potter@citi.org.za for more information.
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CITI is an independent, not-for-profit, development agency supporting the growth of the IT cluster of businesses in the Western Cape. Operating on a business-like basis, the organisation is answerable to its paid-up members and IT businesses and stakeholders. CITI sits at the junction of business, education and government. It is a networking organisation which unleashes the power of entrepreneurship, community and capital by bringing people and businesses together.
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