Ten new technology start-up companies were established in Port Elizabeth, in the Eastern Cape, in 2015 with the help of the local Small Enterprise Development Agency (Seda) of the Department of Small Business Development.
The Seda Nelson Mandela Bay Information and Communication Technology (ICT) Incubator, or SNII, reports that job creation in small, medium- sized and microenterprises (SMMEs) supported by the agency rose 18%, says SNII centre manager Sipelo Lupondwana.
Further, the average turnover of SMMEs forming part of the initiative increased 25%.
Ten new ICT and technology start-ups were established from 11 projects during the past year. The incubator had 26 SMMEs in various stages of incubation, while 37 direct and 81 indirect jobs were created from April 2014 to March 2015 by new ICT and technology start-ups.
The incubator’s total portfolio of projects, SMMEs and incubator beneficiaries stood at 96 in 2015. In terms of job creation from SNII clients across these categories, 46 direct jobs, 102 indirect jobs and 25 casual jobs were created for Nelson Mandela Bay’s regional economy over the period.
The combined turnover of SMMEs and incubator beneficiaries totalled R5.1-million to the regional economy of Port Elizabeth.
Lupondwana says about 71% of small business start-ups do not survive their first year in the market, which makes the fact that 100% of incubated enterprises supported by SNII survived their first year, with 94.5% of enterprises still in operation by their second year, significant.
“We will continue to be the place where Port Elizabeth’s technology entrepreneurs, and young ICT businesses and inventors come to develop their ideas into successful enterprises. We have office facilities and space, IT infrastructure and connectivity to reduce the cost of doing business, as well as good business coaches, mentors and business support services.”
One of the immediate aims is to unlock meaningful partnerships with global and local private firms.
Lupondwana avers that enterprise development cannot succeed without support from big technology and ICT companies: “We want to bring blue-chip companies, such as Microsoft, IBM South Africa, Datatec, Dimension Data, Siemens South Africa, Altec, EOH and Pinnacle Technology, into this incubator to share their ideas, technologies and leadership, and help groom the next generation of technology entrepreneurs.”
He adds that the SNII will also try to create partnerships with international universities such as the Massachusetts Institute of Technology.
Meanwhile, the SNII will launch a new research and development laboratory this year that will help to drive innovation in the region.
“SNII will continue to work to entrench itself as a catalyst for local economic growth through technology. We want to play the lead role in transforming Nelson Mandela Bay into a smart city, and we want to be the technology partner for key economic sectors such as maritime, automotive, manufacturing and renewable energies.”