Small Enterprise Development Agency Technology Innovators – Infographic

Fundamentally, the Stp incubation programme is well conceived and addresses all aspects of global best practice for SMME development, technology adoption and long-term sustainability and growth. In particular, it includes market linkages, with access to inputs, potential partners and buyers. The costs per incubatee vary widely between the sectors, ranging from R800 000–R1 million in the chemical and metal industries to R25 000 per successful SMME in construction. Manufacturing is exceptionally expensive, with an average cost of R8 million per SMME. The costs directly associated with incubation comprise the majority of total expenditure by the incubators – this is positive, showing that funds at the incubator level achieve results. There is a significant drop-off from the number of incubatees entering the programme to the number of SMMEs graduating from the programme, and again to the number still in business three years later. The incubation programme and the individual incubators should attempt to reduce drop-off rates in each phase. In recent years, the focus on technology has been diluted from a performance targeting and monitoring perspective. The newly established Department of Small Businesses Development is likely to absorb existing agencies and functions of the dti. This analysis highlights the role of the institutional location of a programme in shaping its mandate; the change in departmental structure should not compromise the technology focus of the Stp.