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www.infodev.org
Best Practice Models for Technology Business Incubation
South African Business Incubation Conference, 10 March 2016
Dr Jill Sawers
jsawers@worldbank.org
Contents…..
• Who is infoDev….
• Business Incubation Models promoting technology
incubation (AICs; Mlabs & MHubs; Climate Innovation
Centers; Women entrepreneurship)
• Additional models….FEMTECH; Hubba
2
Who is infoDev
infoDev is a multi-donor program in the
World Bank Group that supports
entrepreneurs in developing economies.
It oversees a global network of business
incubators for climate technology,
agribusiness, and digital entrepreneurship.
It also publishes educational toolkits for
business incubator managers and
development professionals.
www.infodev.org
3
Pre-Seed/
Seed
Start-up Early growth Growth Developed/
Established
FIRM
CAPABILITY
MARKETS
FINANCE
ENVIRONMENT
Limited Human Capital (Skills mismatch)
Information Failure/ Knowledge Gaps
Barriers to Entry
(Uncompetitive Markets)
Barriers to Exit
Credit Constraints / Limited Access to Finance (Financing Gaps)
Regulatory & Institutional Constraints
Underinvestment in Public Goods (Infra, Basic R&D, Education,…)
Weak Managerial Capacity
NEW, HIGH GROWTH FIRMS GENERATE MOST JOBS AND
REVENUE GROWTH, AND BRING LASTING INNOVATIONS
Underinvestment in Skills & Training
Weak Absorptive Capacity
AGRIBUSINESS: ADDING VALUE LOCALLY
Agribusiness Innovation Centers in
Tanzania and Nepal
AICs provide:
• facilities
• early-stage financing
• business and technical training
• market research and linkages.
They generate revenue through a
combination of royalties, incubation
fees, and equity.
The potential of agricultural growth to reduce poverty is four times
greater than the potential of growth from other sectors.
Successes of AIC Pilot in Tanzania
Tanzania AIC pilot of 9/50:
• One company doubled its sales from
$85,000 to $170,000 in six months.
• Two companies began selling to
large supermarkets rather than via
informal sales channels.
• Through assistance with packaging
and production flow charts, two
companies reduced their operating
costs by 20 %.
6
Digital Entrepreneurship
Program:
• mLabs,
• mHubs
DIGITAL: NEW TOOLS FOR OLD CHALLENGES
In Sub-Saharan Africa, the mobile industry is expected to reach
$119 billion in 2020.
Successes of MLabs & MHubs
South African GoMetro is a startup winner of the
Gauteng Innovation Competition – app adopted by
Metro rail.
• offers a mobile service that provides over
450,000 Metrorail commuters with updated
information on travel routes.
• Since June 2013, mLabs and mHubs have
– Created approximately 1000 high-skills jobs,
300 of which were held by women.
– Created 100 startup companies with over
500 products successfully marketed
– Over 200 of startups earning over
$1,000,000 in revenues
8
CLIMATE TECH: TAPPING GREEN OPPORTUNITY
Turning climate challenges into growth
opportunities…..
• Seven Climate Innovation Centers
• Grants and seed investments ($50k –
1mil)
• Business Advice and training
• Market intelligence
• Access to facilities
• Government advisory
Garbchar: No waste should go to
waste: energy briquettes
US$70-100 billion per year through
2050 for developing countries to adapt
to a 2 degrees celcius warmer planet.
TAILORING SUPPORT FOR WOMEN
• 80% of women entrepreneurs in sub-Saharan
Africa operate in low-productivity sectors
• Over 200 million women live in countries where
they need their husband’s permission to start a
business
• 70% of women do not have a bank account in
their own name
• Less than 5% of SME loans go to women-owned
businesses
• Women worldwide have greater fear of failure
and lower confidence in their entrepreneurial
abilities than men
• Women globally have smaller and less diverse
networks and are less likely to seek advice and
broaden their networks
Co-Working Space – Hubba, Bangkok
11
FEMTECH – innovative women entrepreneurs
12
Thank you………
13
infoDev FY14-15 Disbursements by Theme & Region
Region

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Dr Jill Sawers

  • 1. www.infodev.org Best Practice Models for Technology Business Incubation South African Business Incubation Conference, 10 March 2016 Dr Jill Sawers jsawers@worldbank.org
  • 2. Contents….. • Who is infoDev…. • Business Incubation Models promoting technology incubation (AICs; Mlabs & MHubs; Climate Innovation Centers; Women entrepreneurship) • Additional models….FEMTECH; Hubba 2
  • 3. Who is infoDev infoDev is a multi-donor program in the World Bank Group that supports entrepreneurs in developing economies. It oversees a global network of business incubators for climate technology, agribusiness, and digital entrepreneurship. It also publishes educational toolkits for business incubator managers and development professionals. www.infodev.org 3
  • 4. Pre-Seed/ Seed Start-up Early growth Growth Developed/ Established FIRM CAPABILITY MARKETS FINANCE ENVIRONMENT Limited Human Capital (Skills mismatch) Information Failure/ Knowledge Gaps Barriers to Entry (Uncompetitive Markets) Barriers to Exit Credit Constraints / Limited Access to Finance (Financing Gaps) Regulatory & Institutional Constraints Underinvestment in Public Goods (Infra, Basic R&D, Education,…) Weak Managerial Capacity NEW, HIGH GROWTH FIRMS GENERATE MOST JOBS AND REVENUE GROWTH, AND BRING LASTING INNOVATIONS Underinvestment in Skills & Training Weak Absorptive Capacity
  • 5. AGRIBUSINESS: ADDING VALUE LOCALLY Agribusiness Innovation Centers in Tanzania and Nepal AICs provide: • facilities • early-stage financing • business and technical training • market research and linkages. They generate revenue through a combination of royalties, incubation fees, and equity. The potential of agricultural growth to reduce poverty is four times greater than the potential of growth from other sectors.
  • 6. Successes of AIC Pilot in Tanzania Tanzania AIC pilot of 9/50: • One company doubled its sales from $85,000 to $170,000 in six months. • Two companies began selling to large supermarkets rather than via informal sales channels. • Through assistance with packaging and production flow charts, two companies reduced their operating costs by 20 %. 6
  • 7. Digital Entrepreneurship Program: • mLabs, • mHubs DIGITAL: NEW TOOLS FOR OLD CHALLENGES In Sub-Saharan Africa, the mobile industry is expected to reach $119 billion in 2020.
  • 8. Successes of MLabs & MHubs South African GoMetro is a startup winner of the Gauteng Innovation Competition – app adopted by Metro rail. • offers a mobile service that provides over 450,000 Metrorail commuters with updated information on travel routes. • Since June 2013, mLabs and mHubs have – Created approximately 1000 high-skills jobs, 300 of which were held by women. – Created 100 startup companies with over 500 products successfully marketed – Over 200 of startups earning over $1,000,000 in revenues 8
  • 9. CLIMATE TECH: TAPPING GREEN OPPORTUNITY Turning climate challenges into growth opportunities….. • Seven Climate Innovation Centers • Grants and seed investments ($50k – 1mil) • Business Advice and training • Market intelligence • Access to facilities • Government advisory Garbchar: No waste should go to waste: energy briquettes US$70-100 billion per year through 2050 for developing countries to adapt to a 2 degrees celcius warmer planet.
  • 10. TAILORING SUPPORT FOR WOMEN • 80% of women entrepreneurs in sub-Saharan Africa operate in low-productivity sectors • Over 200 million women live in countries where they need their husband’s permission to start a business • 70% of women do not have a bank account in their own name • Less than 5% of SME loans go to women-owned businesses • Women worldwide have greater fear of failure and lower confidence in their entrepreneurial abilities than men • Women globally have smaller and less diverse networks and are less likely to seek advice and broaden their networks
  • 11. Co-Working Space – Hubba, Bangkok 11
  • 12. FEMTECH – innovative women entrepreneurs 12
  • 14. infoDev FY14-15 Disbursements by Theme & Region Region