Traditionally, the role of a business incubator has been to support the growth and development of an existing start-up company. However, there is an opportunity for incubators to broaden their scope, and play a far more influential role in the economy.
This is the view of Chris Vermeulen, GM of Bandwidth Barn, who proposes that a new model for business incubators can stimulate economic development and lead to significant employment opportunities.
“A new model, which adds to the traditional incubator's support for business growth, would also offer a broader skills development component, and a business creation stream to encourage the development of new innovations beyond the ideas phase,” he offers.
Vermeulen proposes that the critical factors of the old model be extended to help the business flourish. These factors include mentorship and business skills training, the creation of networks and peer groups, and the provisions of a physical space with affordable rent and services, he says.
The second pillar in the new model, notes Vermeulen, would focus on stimulating business creation. “This would see an incubator initiating programmes which would encourage people to generate new business ideas, and then support them to turn the idea into a business plan.”
He argues that this would not only encourage job creation, but also spur the development of an entrepreneurial culture, creating a snowball effect.
The model's third pillar is focused on skills development, he states. ” While this has always been a major component in an incubator's strategy, the new approach would expand this offering beyond entrepreneurs already in business,” explains Vermeulen.
“By embracing this new approach, incubators can play a powerful role in job creation by providing broader support at a number of levels. They can be catalysts for innovation and an entrepreneurial culture, both critical drivers for economic growth and development in SA,” he concludes.
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