Universities in the Western Cape should look at establishing business incubators.
This is according to CPUT researchers Thobekani Lose and Dr Robertson Tengeh, who conducted a study that explored the challenges and concepts of business incubators in the Western Cape.
The results of the study were presented at the 7th International Conference on Business and Finance, which took place in Cape Town.
The conference was hosted by CPUT and provided academics from across the globe the opportunity to debate, review existing strategies and propose mechanisms for the likely achievement of a sustainable economy.
Based in the Faculty of Business and Management Sciences, Lose and Tengeh, explored the workings of five business incubators in the Western Cape.
Lose says the concept of business incubators was first launched in the United States, approximately 50 years ago, and today such entities can be found across the globe.
“Business incubators are companies that can assist small businesses. They nurture and help them to develop,” says Lose.
Business incubators were launched in South Africa in 1995 and Lose says two decades later, these entities face various challenges.
This includes lack of growth and sustainability, a lack of entrepreneurial skills, poor facilities, lack of sponsors as well as a lack of access to technology.
“Business incubators play a significant role in meeting the needs of SME’s in the Western Cape. However, assessing the challenges of business incubators in the whole of South Africa should be looked at,” he says.
Lose says their study also recommends that managers at business incubators are continually trained.
