daniel chigunwe
Nokuthula G Moyo-Muparuri
Providing adequate support and resources for Start-Ups will ensure that Start-Ups grow and thrive in the country.
There is need to develop Budgetary provisions for the resources required by Start-Ups.
This article will discuss the following: Funding Resources; Co-working Spaces; Government Support; Start-Up Educational Programs and Commercialisation Support.
Funding Resources
There is need for the country to develop a mind-set of self -sufficiency in terms of funding. The country needs to let go of a begging bowl mentality by always looking outside the country to get funding. There is need to develop local funding mechanisms to fund local Start-Ups.
An example is that of Nigeria, using their own Sovereign Wealth Fund, have established an Innovation Challenge for their Start-Ups.
In the same vein the country can harness local resources from institutions such as Mutapa Investment Fund, Insurance and Pensions Commission, Zimbabwe Investment Development Authority and Zimbabwe Stock Exchange can develop mechanisms for funding Zim Start-Ups.
The types of funding that can to be unlocked are Venture Capital, Crowd Funding, Angel Investment, Grants and Competitions.
There is also need for the country to develop its own Angel Investor community and establish Angel Investor Networks. Angel investors are high-net-worth individuals who provide capital to early-stage Start-Ups in exchange for equity ownership.
They often bring valuable industry expertise, contacts, and mentorship to the businesses they invest in.
The advantages of Angel Investors are getting access to experienced investors with industry knowledge and there are also flexible investment terms compared to venture capital.
The disadvantages are that there may be dilution of ownership and there is a potential for differing visions and strategies.
The National Venture Capital Fund of Zimbabwe was established to assist Start-Ups and other small firms to access working capital and funding for technology improvement.
However its activities are not visible for Start-Ups.
The National Venture Capital Fund needs to develop programs and create awareness for such programs for Start-Ups. Venture capital (VC) firms invest in Start-Ups and high-growth, high-risk and high-reward, companies in exchange for equity.
They typically provide larger funding amounts than angel investors and are actively involved in the businesses they fund.
The advantages of Venture Capital, is that Start-Ups get significant capital injection and also get access to professional management advice and networks. The disadvantages are that Start-Ups face significant equity dilution and also face pressure for high growth and returns.
There is need for the country to develop home grown Crowd Funding Platforms which cater to the needs of local Start-Ups. Crowd funding platforms like GoFundMe have gained popularity as a way to raise capital from a large pool of individual investors.
Start-Ups can pitch their business idea or product to the online community and receive funding from backers in exchange for rewards or equity. Crowd funding involves raising small amounts of money from a large number of people, typically through online platforms.
The pros of crowd funding are that Start-Ups access to a large pool of potential investors and develop the ability to validate product ideas and build a customer base. The cons are that Crowd Funding requires significant marketing effort and the funds are not guaranteed.
There is need to develop local Grants and Business competitions from government, corporations and foundations. Grants and business competitions offer non-dilutive funding to businesses, meaning that Start-Ups do not have to give up equity.
These opportunities are often provided by government agencies, nonprofits, and corporations seeking to support innovation and entrepreneurship. Business competitions often offer cash prizes and other resources.
The pros of these are that Start-Ups do not need to repay or dilute ownership and Start-Ups get recognition and credibility from winning competitions.
The cons are that it is highly competitive and Start-Ups must meet specific eligibility criteria and application process.
Co-working spaces
There is need to promote the concept of co-working spaces in the country. This will create an environment where Start-Ups can access working space with minimal resources.
Co-working is an arrangement in which different persons share an office
<https://en.wikipedia.org/wiki/Office> space. It allows cost savings and convenience through the use of common infrastructures, such as equipment, utilities and receptionist and custodial services, and in some cases refreshments and parcel acceptance services
Governmentsupport
The government can provide Start-Up support by developing legislation which creates funding access, simplifying and streamlining the processes involved in starting and running a business, providing incentives for innovative individuals and creating a supportive legal framework.
The government can also support Start-Ups by promoting a culture which values and supports Start-Ups.
This can be done through public awareness campaigns and by recognising and celebrating contributions of Start-Ups. This can be done by introducing a National Start-Up Week which can be an annual event that brings together Start-Ups, investors and experts from around the country to exchange ideas and showcase latest innovations.
The government can also foster networking by creating opportunities for Start-Ups to meet and exchange ideas. The government can also introduce incubator and accelerator programmes that provide mentorship, training and resources to Start-Ups.
The effectiveness of government support for Start-Ups can be influenced by a variety of factors, such as Program Design, Economic Stability, State of the Economy, Entrepreneurial Culture and Implementation.
There is need to come up Programs that are well-designed and tailored to the needs of Start-Ups as they are more likely to be effective than generic programs that don’t take into account the unique challenges faced by Start-Ups. There is also need to maintain economic stability, as this can also play a role in the effectiveness of support programs.
This will ensure that Start-Ups trust the support programs and take advantage of the resources that are offered.
The state of the economy can also have an impact on the effectiveness of support programs. The economy is on an upward turn so Start-Ups may be able to benefit from government support programs.
The entrepreneurial culture of a country can also play a role in the effectiveness of support programs.
There is need to encourage and support Start-Ups as this is more likely to improve the uptake of government support programs. The implementation of support programs can also have an impact on their effectiveness.
Programs that are well-implemented and effectively delivered are more likely to be successful than those that are poorly executed. So there is need to improve the execution of support programs.
Start-Up educationalprograms
There is need to develop specialist Start-Up programmes that focus on Start-Up Training that will ensure Start-up horn their skills and are able to develop business that become unicorns.
Specialist classes for Validation, Articulation, Market, Structure, and Funding will be offered to impart Start-Up specific skills. The validate classes focus on creative thinking and lean business methodology, with a customer centric approach at its core.
They aim is to help Start-Ups assess & critically determine the commercialisation potential of their ideas.
The articulate classes are all about developing the skills for Start-Ups to tell their story in a succinct and compelling way to create an authentic connection with their audience.
The market classes aim to provide founders and innovators with enough understanding of branding, marketing, sales and digital platforms to launch their MVP.
The structure classes focus on getting business structure in place and ready for growth from the start.
The classes helps Start-Ups understand corporate governance, what they need in place when raising capital and managing Intellectual Property.
The fund classes are all about investors and investment in terms of focusing on the different types of investors and investment options for each stage, the process of finding and approaching investors, including, negotiating to secure the best deals.
Commercialisation Support
There is need for the government to provide commercialisation support by establishing Technology Transfer Offices. The support can include workshops which address questions around commercialisation.
These workshops may cover issues such as, Intellectual Property Rights, Company Law, and Contracts.
Commercialisation is the process of turning inventions into commercially viable products or services. It is an essential step for Start-Ups seeking transition from concept development to market penetration, effectively transforming innovative ideas into profitable businesses.
This process not only helps Start-Ups protect their unique ideas, but it also provides an avenue for monetising these ideas.
For Start-Ups, commercialisation is a strategic tool for growth and success. Commercialisation is a key means of translating intellectual property into tangible business value.
The Writer Nokuthula G Moyo-Muparuri is a lecturer at the Midlands State University in the Faculty of Business Sciences. She is also the Founder of the Institute of Applied Entrepreneurship. The mission of the Institute is Start-Up & Innovation Skills Development and Start-Up Ecosystem Development. The Institute has started an initiative of developing the Start-Up Zim Communities. This is in preparation for the Innovation Challenges which will commence afterwards. Those interested to join the Communities can contact the Institute on +263718747621
Bongani Ndlovu