Across francophone Africa, incubators are emerging rapidly to support a new generation of young entrepreneurs. Despite their huge potential, however, incubators are just one of many players in a typical entrepreneurial ecosystem. So it is increasingly important that incubators — in addition to allocating the necessary resources, services and funding to worthy start-ups — provide them with a platform to share and transfer knowledge across the ecosystem, not only with each other but also with the investors, research centers and industry experts upon which their businesses will ultimately depend.
As with Impact Hub Bamako, incubators can be part of broader international franchises, while others are anchored by academic, public or private bodies (or some hybrid of the three) and may already be associated with other incubators. Bond’innov, for example, is an incubator that promotes entrepreneurship cooperation between the global North and the South and that is headquartered in Paris and located on-campus with the Institute for Development Research, a large multidisciplinary research organization operating in more than 50 developing countries.
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Babah Salekna El Moustapha, co-fondateur de la Société Mauritanienne pour l'Industrie de Charbon de Typha (SMICT) avec Mohamed et Moctar Abdallahi Kattar. Photo Crédit : Moussa Traoré, HADINA.
« Innovez pour le climat. Travaillez de manière durable. » Ce slogan a lancé l'appel à candidatures de la dernière initiative de soutien à l'entrepreneuriat du Groupe de la Banque mondiale en Mauritanie, le Marathon de l’Entrepreneur – un concours à l' échelle nationale qui permettra d'identifier et d' accompagner une nouvelle génération d'entrepreneurs. Cette compétition est une initiative du Groupe de la Banque mondiale, en partenariat avec le Ministère de l'Economie et des Finances, et avec Hadina RIMTIC qui agit comme véhicule central par lequel le soutien du bailleur et du secteur public peut être transféré aux aspirants entrepreneurs mauritaniens.
Annoncée en avril, la compétition accompagne 21 nouvelles ou jeunes entreprises, leur fournissant des services de formation, d'encadrement et d'autres services d'incubation pour les aider à élaborer un plan d'affaires final et, fondamentalement, à tester les hypothèses qui sous-tendent leurs idées d'entreprise.
Babah Salekna El Moustapha, co-founder of the project Mauritanian Society for the Typha Coal Industry (SMICT) with Mohamed and Moctar Abdallahi Kattar. Photo Credit: Moussa Traoré, HADINA.
“Innovate for the climate. Work sustainably.” This slogan launched the call for applications to World Bank Group’s latest entrepreneurship support initiative in Mauritania, the Entrepreneur’s Marathon — a country-wide competition to identify and accompany a new generation of entrepreneurs.
This competition is an initiative of the World Bank Group in partnership with the Ministry of the Economy and Finance and Mauritanian incubator Hadina RIMTIC (ICT in the Islamic Republic of Mauritania) acting as the central vehicle through which public and donor support can be channeled into Mauritania’s aspiring entrepreneurs.
The competition is accompanying 21 new or young start-ups and businesses, providing them with training, coaching and other incubation services that will help them develop a final business plan and provide evidence for the hypotheses underpinning their business idea.
Heading back from a recent mission to Ghana, I felt really proud of what we have accomplished: training 20 of the most promising local clean-tech entrepreneurs through the Green Innovators Bootcamp. The words used to inaugurate the event are still in my head: “This bootcamp is not an end in itself. It’s the beginning of your journey as entrepreneurs.”
Indeed, bootcamps for startups and SMEs – as well as close cousins like Hackathons, Start-up Weekends, and Business Plan Competitions – are an increasingly popular activity used to catalyze innovative ideas and provide entrepreneurs with the tools and resources they need to launch their ventures.
In Ghana for example, infoDev -- a global innovation and entrepreneurship program in the World Bank Group -- organized a two-day training event to help a group of 20 early-stage entrepreneurs assess the feasibility of their business concept, identify their customer base, and refine their business model.
Organizing a bootcamp can be very challenging and time-consuming, but, when done properly – read “7 things you need to do to prepare for the perfect bootcamp” – the payoff is big. "Bootcampers" find these initiatives very useful to identify new solutions to the challenges they face to launch their businesses -- mostly access to finance, product development, and marketing. Furthermore, "pitching competitions" and "business contests" offer new entrepreneurs an excellent and safe stage to refine their business pitch -- a key tool of every successful entrepreneur.
One of the goals of bootcamps and pitching competitions is to bring together different stakeholders – from entrepreneurs to investors and policymakers – to facilitate the creation of ecosystems in which entrepreneurs can grow and thrive. But is it realistic to expect that bootcamps and similar training initiatives are enough to enable promising entrepreneurs to reach their full potential? The answer is simply: No. Make no mistake: Bootcamps are an exciting tool to create buzz and interest in countries that have little entrepreneurial history and culture. In most contexts, however, there is no follow-through with effective action plans that can keep the momentum going. This not only limits the value of these initiatives, but can also cause harm to a nascent ecosystem.
Sub-Saharan Africa is home to the world’s highest female entrepreneurial activity, according to the Global Entrepreneurship Monitor Women’s Report. Approximately 27% of African women are engaged in some form of entrepreneurial venture. Among these women is Kate Mahugu, cofounder of Shopsoko.com.
A culture of angel investment could help entrepreneurs in developing countries (Credit: infoDev)
Investors and ‘Africanists’ Wesley Lynch and Keet van Zyl, co-founders of AngelHub in South Africa had fascinating things to say about early-stage innovation financing during infoDev’s Global Forum on Innovation and Technology Entrepreneurship in South Africa. Not only did they help in selecting the most inspiring entrepreneurs for the Forum’s Dragons’ Den pitching contest, they were putting forward a lot of passion in explaining how a culture of angel investment for startups and fledging entrepreneurs could be established on the African continent. As access to finance is noted often as the main problem for innovative startups, we should look seriously at models that show potential.
“You have a good social project, but it is not an investable company”, I heard fellow judge and technology activist Mariéme Jamme say to a South African entrepreneur who had just given his best business pitch. He was taking part in the Dragons’ Den at the 5th Global Forum on Innovation and Technology Entrepreneurship, a fantastic 3-day learning and networking event organized by the World Bank’s infoDev and the South African Department of Science and Technology. You could see the entrepreneur (let’s call him ‘B.’) gasping for air, and one could hear a pin drop in the completely filled auditorium of the Global Forum. Over 800 people, mostly entrepreneurs, financiers, policy makers and technology ‘evangelists’ from all over the world had gathered here.
Business reforms can spur economic dynamism in the East African Community
East Africa is famous for its breathtaking landscapes and its unique concentration of wild animals. Could it also become as famous for its dynamic economic development?
In 2009 I came to Tanzania to work on tax harmonization in the East African Community (EAC). The Common Market Protocol was about to be signed and one of the biggest goals was to tap into the economic potential of the region by facilitating (cross-border) trade and improving the business climate. A year later, the five Partner States of the East African Community ratified the Common Market Protocol in order to realize “accelerated economic growth and development through the attainment of the free movement of goods, persons, labor, the rights of establishment and residence and the free movement of services and capital”. The overarching goal of the East African Community is to achieve sustainable economic growth in order to increase employment and reduce poverty.
How are emerging market entrepreneurs leveraging technology and changing development paradigms? Why are the rewards of funding innovative new ventures in emerging economies worth the risks, and what makes these investments succeed? How can investors, policy makers, and the private sector in general help find and groom transformative high-growth enterprises?