Business incubation is key to supporting and sustaining
business enterprises in order to assist them in overcoming barriers in the
early stages. It is easy for a small business to “die” within the first two
years, according to Maurice Radebe, executive vice-president of energy business
at Sasol.
Radebe was speaking at the launch of the Sasol Business
Incubator (SBI), which is aimed at assisting black-owned small-, medium- and
micro-enterprises (SMMEs), whose products are ready for commercialisation, to
develop their start-ups into thriving businesses that contribute to the
economy.
The programme was launched at the beginning of May in
Sasolburg and is a product of a partnership between Sasol and the department of
trade and industry (dti), developed under Sasol’s Enterprise and Supplier
Development (ESD) department.
Located on a 172ha Eco-industrial Park (EIP), the SBI can
host about 240 diverse SMMEs. So far R90m has been invested in the programme;
R34m from Sasol and R20m from the dti. There are 150 stands currently available
for sale to small businesses. The pilot project has 16 businesses at the EIP,
and three more will be added in the next few weeks, said Wrenelle Stander, senior
vic-president of public affairs and real estate services.
The SBI has a specific focus on the manufacturing sector to
develop industrialists, and offers access to manufacturing equipment that small
businesses need, said Stander.
Long-term
sustainability
The incubator entrepreneurs are not to remain at the SBI
forever, but need to move on and make a greater difference in society, said
Radebe. They are meant to develop into fully fledged, self-sustaining
businesses that are financially independent and can contribute to economic
growth.
The incubator supports SMMEs in two main areas, physical and
virtual incubation.
Physical incubation supports ranges from three to 12 months.
The start-up engages in the commercialisation of the businesses products using
facilities at the EIP and support from Sasol’s 32-person SBI team. Work space is
leased at subsidised rates said Justice Magagula, vice-president of group
enterprise and supplier development.
Once graduating, the entrepreneurs will exit the SBI with
the intention of establishing an enterprise at the EIP. They can do this by
buying the fully serviced land to build their factories, said deputy minister
of trade and industry, Mzwandile Masina. Entrepreneurs can apply for loans from
the dti to do this. During the virtual phase, the enterprise continues to
receive support from SBI for 24 months to ensure its sustainability.