This document discusses developing a sound value chain for technology business incubation support. It notes that currently the small business ecosystem is not integrated and support is not available throughout all stages of a business's development. Different institutions need to provide differentiated support to avoid duplication and wastage, and access to markets is often poor. The technology development pathway is not linear and involves moving between basic research, development, production, and sales both locally and accessing overseas technology sources, with an "innovation chasm" to cross.

1. “Developing a sound value-chain for
technology business incubation support”

2. What does a healthy ecosystem of
support look like?
“To succeed we need a small business ecosystem that works”
Hon. Dep. President MC Ramaphosa, #SABIC2016

3. What does the technology development
pathway look like?
“To succeed we need a small business ecosystem that works”
Hon. Dep. President MC Ramaphosa, #SABIC2016

4. What does the technology development
pathway look like?

5. This not a linear approach…

6. Innovators Financiers
Unaudited
Sep 00 to
Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02 Oct-02
REVENUE
iD-refcheck 10,803 2,740 3,097 3,476 3,873 4,260 4,700 5,318 5,852
iD-voice 0 0 0 0 0 0 0 0 432
iD-auto 0 0 0 411 948 1,492 2,235 3,336 4,980
UK 0 0 0 0 825 2,750 4,750 7,625 11,438
China 0 0 0 0 0 0 0 450 1,500
Canada 0 0 0 0 0 0 0 0 400
iD-academic 0 0 0 0 400 600 2,000 5,000
iD-mobile
iD-cert
iD-transact
iD-ref new territories A,B,C
TOTAL REVENUE 10,803 2,740 3,097 3,887 5,645 8,902 12,285 18,730 29,601
Cost of sales
iD-refcheck 6,373 1,400 1,257 1,254 1,394 1,542 1,718 1,966 2,169
iD-voice - - - - - - - - 62
iD-auto - - 273 654 1,042 1,561 2,331 3,479
UK - - - - 630 2,100 3,713 6,019 9,028
China - - - - - - 315 1,050
Canada - - - - - - - 240
iD-academic - - - - 208 312 1,040 2,600
iD-mobile
iD-cert
iD-transact
iD-ref new territories A,B,C
TOTAL COS 6,373 1,400 1,257 1,527 2,678 4,684 6,992 10,630 16,028
Shared understanding (incl. terminology)
#$tartUp_₤€¥

7. EARLY STAGE FUNDING SUPPORT

8. Bootstrapped
Business
1999 – 2008
Gov Loans
& Grants:
R3mil
Own funds
R400 000
FUNDING & SUPPORT
“Nothing was integrated. Had to deal with all of them separately, different mandates.
Did about 50 business plans. Mandates changed in the middle of the process!!! But is
was soft money and allowed me to prove the concept.” unhealthy support system

9. Closing remarks
• Support needs to be available through out the stages of development – cradle to grave
• Differentiation of value add by various institutions critical – to avoid duplication and
wastage
• Poor access to markets a glaring reality of most support programmes – especially in
areas where potential for value addition is highest (next slide)
• Need to move beyond collaboration lip service

10. Basic Strategic Application Design Production/ Sales
Research Development Manufacturing
PRODUCT LIFE CYCLE
ActivityLevelScale
Local
Research
Local Industry &
Industrial Products
OVERSEAS TECHNOLOGY SOURCES
Research Development Production
Innovation “Chasm”
10