08 Mar 2017

Parliament has been informed that 193 youth companies presented their business projects to First Step Venture Centre at the Botswana Innovation Hub (BIH) from 2014-2017.
Responding to a parliamentary question on March 6, Minister of Tertiary Education, Research, Science and Technology, Dr Alfred Madigele said of the193 companies that pitched, 95 could not meet the requirements while 98 proceeded to apply to enroll in the program. Out of the 98, 25 were successful and 73 were not.
He said successful companies were enrolled into the incubation and received support with business coaching and development, business network opportunities, technical and business advisory services, subsidized office space which include furnished office with internet and telephone, as well as exposure to local international market opportunities.
“The current state of operations of these companies is that they have graduated out of the programme and are seeking customers and investment to grow their business,” he said.
Dr Madigele said unsuccessful companies were referred to other organisations for funding as most of them requested funding, while other companies were advised to go and revisit their business models.
The minister further cited main challenges that unsuccessful companies encountered such as lack of funding to prototype development market and business facilitation, lack of commitment to achieving project milestones by the promoter as per the contractor with BIH.
Other challenges, said the minister included low levels of readiness by the company to start the project and low uptake of innovations by private and public entities.
In addition, Dr Madigele said the Botswana Innovation Hub continues to engage with leading corporate and public entities to create market opportunities for the youth innovators.
“BIH is fast tracking the implementation of the Innovation Fund with the view to providing an avenue that can be used to avail funding for those start-ups that qualify against the prescribed criteria. The innovation Fund should be operational in the coming financial year,” said the minister.
Specially Elected Member of Parliament, Mr Mephato Reatile had asked the minister to state the number of youth startup companies that have presented/pitched their business project to the First Step Venture Center (FSVC) at Botswana Innovation Hub (BIH) in the past three years.
He also requested the minister to state the number and names of youth companies that were successful and those that were unsuccessful, the support that was given to successful companies and benefits, their current state of operations and what happened to the unsuccessful companies.
Furthermore, Mr Reatile wanted to know the main challenges that unsuccessful companies were faced with and the support that was given to them to help them overcome challenges. ENDS