Statistics unpacked

The latest statistics for SMME’s situated within the Softstart BTI Incubator in Midrand, Gauteng reflect results that significantly exceeded projected growth for the financial year 2009-2010.

The figures show that 12 new ICT SMME’s were established, 117 clients were supported, of which 80% were black owned and 16% were female owned, 19 businesses successfully graduated from Softstart BTI to become self-sustaining and more than 390 jobs were created within the last financial year, whilst the year-on-year average growth in SMME income was 66%.

Growth and Results of Softstart BTI

These figures represent an average overachievement for Softstart BTI against its projected results, which come after the introduction of Ms. Leonie Greyling in January 2009 as the incumbent CEO. Softstart BTI is only 1 of more than 20 Incubators in South Africa and as a member of the African Incubator Network, 1 of 300 found within an African context. It is also the only known South African incubator to have tertiary institute satellite incubators within its orbit of direct influence.

This is certainly a story of success to be celebrated, reaped after a full year of dedication and hard work by the loyal staff and other role players of this privately owned not-for-profit company, supported by the Small Enterprise Development Agency, or SEDA, as it is more commonly known.

Softstart BTI previously advertised in the media to encourage entrepreneurs to come for assistance. Now, there are an average of 15 self-motivated “walk-ins” knocking on the Incubator’s door every week. This phenomenon demonstrates the depth of talent within the Gauteng region of individuals who believe that they have a unique product offering or idea and that their business concept is scalable within the Information and Communication Technology (ICT) sector.

Assistance Offered to Entrepreneurs

Says Ms Lalane Janse Van Rensburg, Enterprise Development Manager, “We do not turn anyone away from Softstart BTI without having offered some degree of assistance. If the potential business does not meet our entry criteria, we will refer the entrepreneur to an alternative source of assistance or provide guidance in terms of product or idea development so that the entrepreneur may approach the Incubator for assistance successfully at a later stage.

When you sign up with Softstart BTI, the business idea itself must be compatible with the Incubator’s business model and the potential client must have an almost unshakable belief while possessing extreme enthusiasm for his business venture.  It is all about vision and self-belief, potential growth and scalability.  Do not expect to receive a grant from the Incubator for operating expenses while you start your business, as this is not its role – what the Incubator will do, however, is to provide the venture with guidance and assistance in the form of business support, intensive mentoring and coaching and skills development.

As a not-for-profit Business and Technology Incubator, Softstart BTI stimulates, grows and launches early-stage, technology-rich businesses through world-class technology incubation services. Previously disadvantaged groups, professionals and young IT graduates who have the intention of pursuing entrepreneurship as a viable alternative to traditional employment, may find themselves being assisted by Softstart BTI as the Incubator is directly involved with and geared towards helping maximise entrepreneurial development in the ICT industry. It also stands proud as a Level 2 Contributor with a 125% B-BBEE Recognition Level and a Value Adding Enterprise.

The Future of Incubation

Softstart BTI has been instrumental in the establishment of the Southern Africa Business Incubation Association (SABTIA) and the Africa Incubation Network (AIN) and as such, in helping to create a platform for developing sustainable incubation practices in Africa.  As an advocate for entrepreneurship and incubation, Softstart BTI would like to see a greater involvement by corporates in South Africa, by supporting incubators and their entrepreneurs through Corporate Social Investment budget allocations. Apart from supporting incubators, investment in entrepreneurial ventures through seed funding, interest-free loans and access to resources will make a significant contribution to growing the SMME sector and the South African economy.  This will certainly help to address some of the more significant challenges that Softstart BTI and its early-stage ICT entrepreneurs face.  It is acknowledged, however, that a greater awareness of the benefits of such a contribution by corporates should be part of an on-going programme by Incubators to reach all of the decision makers who can share in this vision for incubation.

Softstart BTI’s CEO, Ms Leonie Greyling, is pragmatic about this and says that “for the SMME sector and incubation to truly reach its potential, the support of the full entrepreneurial ecosystem is required. Without corporates playing their role, ICT entrepreneurs - particularly those in the early-stages of development - and incubators will continue to struggle to overcome the challenge of reaching sustainability”. Her parting thoughts are that “Incubation has proven its success in changing the dismal failure rate of start-ups into a resounding success rate – whereas 80% of non-incubated ventures typically fail within the first couple of years, incubation completely turns that scenario on its head, with 80% of incubated ventures succeeding”.

Will we allow the Incubation process to take us there?    The choice, budding entrepreneur, is all yours.