Microsoft SA aims to unearth and promote several talented black software companies in the country over the next seven years.
Last year, the company rolled out a R475 million broad-based black economic empowerment (BBBEE) equity equivalence programme with the aim of creating a new model for entrepreneurship.
Microsoft SA MD Mteto Nyati says the company initiated the programme because, as a multinational, it cannot sell equity in the company.
“So we decided to embark on a programme to grow companies, create jobs and grow our economy. This is true empowerment. So far, we have six small companies on the programme,” says Nyati.
The six companies Microsoft is working with are: Chillisoft, a company that creates public health software solutions; Maxxor, which creates consumer applications for mobile phones;
BUI, a security solutions specialist; Home Grown Business Integrations, which creates cloud-based software for local government; iSolv, which creates solutions around public key infrastructure, encryption and secure communication; and Mmapro, which provides mobile real-time information to traffic enforcement agencies.
Nyati explains that the companies chosen have spent the past year doing intensive analyses of their businesses, and have been restructuring themselves to gear up for their planned expansions.
“To date, our investments have been in skills, to help them recruit and hire top black talent, and infrastructure, both IT and non-IT. Some of them have undergone significant restructuring of their business to focus on the right things and be in a position to take new products to market.”
“We've had two RFPs to date, and will probably have another in 2012. The RFPs were open to small, black-owned companies with a maximum of 30 employees and a turnover of less than R10 million a year,” he adds.
He also points out that Microsoft's one objective is to create a new model for entrepreneurship, and set a new benchmark for developing talent in the industry.
“Through the success of this programme, the market will come to associate BBBEE with real entrepreneurship, job creation, business or enterprise development, and skills enhancement.
“We're also supporting sustainable growth by focusing resources and support for entrepreneurs, who are the foundation of a smarter and more inclusive economy in SA, through the BEE investment.”
According to Nyati, the investment directly addresses key challenges facing the government and SA, such as creating jobs, developing enterprises, building the local software economy and developing scarce technology skills.
“Our main challenges have been around establishing their specific needs and aligning their businesses to high-growth areas in SA and other emerging markets, such as healthcare, education, security, software plus services and mobility, where the company sees the biggest chance of success.”
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