Is community more important than capital?

Recently merged business and technology incubator, SoftstartBTI, maintains that many potential entrepreneurs make the mistake of thinking that raising capital is their principal problem. The Midrand-based incubator, which has been supporting and growing entrepreneurs for four years, argues that its proven ability to help budding entrepreneurs secure seed capital is actually the least of the advantages it offers.

"At any level, business is not about money, it`s about people," explains Leon Lourens, CEO of SoftstartBTI. "This is a truth that is particularly apparent in the start-up world. A budding entrepreneur might have the best idea in the world, but it is the person behind the idea that will make it a success, not the capital."

While there are certain traits any incubator will look for, like commitment and zeal, Lourens is quick to point out that the SoftstartBTI approach is more about helping entrepreneurs develop the skills they require through the sharing of knowledge and experience. "Our attitude is to make ourselves available to individuals who show the desire to succeed," he explains, "and to help them in a variety of ways - coaching, training, discussion and counselling - whatever combination works best for them."

As well as sharing invaluable business experience with entrepreneurs through its informal mentoring process, SoftstartBTI is expert at making sure they quickly learn the specific business management skills needed to make their endeavour a success. "The basics need to be put in place quickly and effectively," emphasises Lourens. "Invariably the entrepreneurs we assist have great technical ideas, particularly since we operate in the ITC sector, but a simple mistake, like mismanaging cash flow, can defeat even the most potentially lucrative idea within the first 12 months."

Another misconception of entrepreneurs that Lourens is keen to dispel is that of the risk-taking gambler. "Contrary to popular opinion, being an entrepreneur is not about taking excessive risks, but calculated ones," he argues, "the high risk-takers generally don`t last very long." He makes the point that part of the job of an incubator is to actually help entrepreneurs mitigate the risks through careful planning, financing and prudent management.

The other job of an incubator, and perhaps its most important, is to help entrepreneurs build the network of expertise and skills required to grow a successful business.

"The whole process of building a business can be tough on your own, but by joining an incubator you get plugged into a network of people with the same goal," explains Lourens. "A network of skilled and diverse friends is as important as the often lauded entrepreneurial `spirit` of inspiration and perspiration. Part of being successful in business is being able to identify and access the specific people who can help you transform your vision into reality."

"Most entrepreneurs often learn the hard way that they cannot know it or do it all themselves," notes Lourens, "but if you are fortunate enough to be in an incubator, there will always be people around who can help you deal with the issues or special problems you encounter."

He cites the developing and improving of their `knowledge networks` as the single most important activity entrepreneurs undertake. "Every entrepreneur is an individual with different skills, strengths, weaknesses and personality traits," he observes, "so it makes sense that the best strategy, when you start out, is to develop your awareness of what yours are and find people who can help you build on them."

Lourens believes it is this understanding of how business is really about people, not money, which has underpinned SoftstartBTI`s astonishing success in recent years and why the SEDA Technology Programme has chosen the organisation to be its flagship incubator. "We will provide you with the network and information you need to build, expand and grow your business," he concludes, "oh, and great coffee too."