Beyond hackathons: How Zim firms can truly embrace startups

Njabulo Sandawana

Large corporations are no longer the exclusive source of innovation.

With their small size, creative thinking and nimbleness, startups have become the new engine of innovation, impacting various industries, from technology to automotive.

Zimbabwean companies, on the other hand, have been slow to adapt to the startup revolution.

As a Zimbabwean entrepreneur, I have attended various hackathons and startup events held by some prominent corporations.

While these can be enjoyable networking events, the majority appear to be public relations exercises for them, rather than genuine efforts to engage with startups.

Short hackathons rarely result in actual partnerships, or investments for the ideas and prototypes generated.

Local companies interact with startups mostly through hackathons and occasional partnerships.

While these are positive steps, organisations must go further to fully realise the promise of startups.

Successful instances of serious startup engagement include, The Coca-Cola Company engaging with entrepreneurs through ‘Coca-Cola Founders’, and Stripe raising money from Visa and American Express.

Even the Central Intelligence Agency (CIA) has made investments in companies through its venture capital arm, In-Q-Tel, which was an early investor in Facebook.

Here are four ways Zimbabwean companies may emulate these examples by embracing startups:

1) Provide Investment

Local companies should think about investing in emerging Zimbabwean startups. This allows startups to develop, while also providing enterprises with access to innovative products and services. Corporations can invest through various channels, such as venture capital arms, accelerators, and direct startup investments.

2) Acquire Startups

An acquisition can be a win-win approach for both parties, when businesses develop traction. The startup receives funding to scale up, while the corporation receives the startup’s revolutionary technology right away. Zimbabwean businesses should seriously consider acquiring promising local companies.

3) Adopt Tools and Technology

Corporations should not only communicate with startups, but also strive to emulate them. Adopting the digital tools, agile procedures, and new technology of startups can help organisations remain competitive. Access to these materials is made possible through collaboration with startups.

4) Provide Infrastructure

Corporations may help Zimbabwe’s startup environment directly by giving infrastructure and facilities. This includes access to co-working locations, incubator programmes, and tools and resources. The more startups that can grow locally, the more corporations will want to work with them.

Adapting to the startup age involves more than just PR-friendly hackathons.

Corporations must make significant commitments to supporting and partnering with startups.

This entrepreneurial approach benefits both the companies that adopt it and the thriving startup ecosystem that it fosters.

The future of Zimbabwean innovation is dependent on companies and startups collaborating in novel ways.

Adopting startups necessitates a targeted and adaptable attitude on the part of Zimbabwean corporates.

Corporations may effectively engage with startups and contribute to the growth of the startup ecosystem by implementing the following strategies:

1. Begin with a specific strategy: Begin small, grow quickly, and aim for large victories to demonstrate results, and gain additional resources.
2. Embrace the speed of startups: Timely engagement is critical to avoiding delays and bad repercussions. Maintain your pace in the fast-paced world of startups.
3. Look for the right partners: Collaborate with other businesses to share expertise and reduce risks. Collaboration can help to reduce worries and uncertainty.
4. Study successful examples: Examine how large institutions like banks interact with startups and adapt those models to the Zimbabwean setting. JP Morgan Chase and Wells Fargo provide useful information.
5. Provide resources and direction: Allow entrepreneurs access to Application Programming Interface (APIs), developer sandboxes, and regulatory and compliance mentorship. Increase assistance and resources available to startups in the ecosystem.
6. Understand startup needs: Interact with a varied group of startups to learn about their needs. Focus groups, questionnaires, and pilot projects can help you avoid forming assumptions and obtain useful information.
7. Consider the following strategic investments: Align business goals with startup funding, either directly or indirectly through a fund. Strategic investments open the door to new ideas and skills.
8. Encourage two-way communication: Encourage open communication channels between businesses and startups to facilitate feedback and information sharing. The interaction can benefit both sides.
9. Accept agility and rapid decision-making: Prepare to make fast decisions and move quickly. To avoid bureaucratic delays, appoint CEOs with decision-making authority.
10. Emulate an entrepreneurial mindset: Take advantage of startup innovation by adopting an entrepreneurial strategy that benefits both corporations and startups. Continue to be open to new opportunities and evolve your approach.

Zimbabwean enterprises may effectively engage with startups and help to the growth of the startup ecosystem by implementing these techniques.

Accepting startups necessitates agility, and a willingness to learn and participate.

Let us work together to create a thriving environment for innovation and entrepreneurship in Zimbabwe.

 

*Njabulo Sandawana is a technologist, entrepreneur and business development manager at Mugonat Systems. He can be contacted on +263715663469 or [email protected]