A case of the National Technology Business Centre (NTBC) - NBIC

OPERATIONS 2002-2008NTBC services at inception• Subsidized consultancy services in business planpreparation, linkages to sources of finance,technology brokerage, product development andimprovement.• A number of MSMEs were created• Getting clients to pay for services was a majorchallenge as NTBC was said to be govt agency• Due to low govt funding services mainly ended atarranging finances for clients• Of the six companies supported only one wasoperational• New strategy was sort

• In 2008, undertook a study tour of the incubationprogramme of the Virginia Tech University, USA aswell as incubation programme by local authority ofthe town of Blacksburg• Report recommended start of a pilot incubationprogramme• In 2009 Ministry identified a small piece of land andembarked on the construction of a small incubationunit to cater for only 4 incubatees, with somecommon facilities.• Completion of the Incubation Unit has been achallenge. Hopefully, it will be ready for occupationthis year.THE TECHNOLOGY BUSINESSINCUBATION PROGRAMME

THE TECHNOLOGY BUSINESSINCUBATION PROGRAMME• 2009 initiated the Technology Business IncubationProgramme to nurture and provide businessdevelopment support services• The NTBC Technology Business IncubationProgramme focuses on the development, transferand commercialisation of Innovative Technologies.• The programme comprises on-site incubation andvirtual incubation.• A separate incubation programme was alsodeveloped specifically for graduates of the publictechnical and vocational colleges.• A small revolving fund at concessionary interestrates was also introduced

THE TECHNOLOGY BUSINESSINCUBATION PROGRAMME• Since incubator is not ready, only virtual incubationis possible but most clients looking for physicalincubation• NTBC provides pre-incubation services anddetermine which businesses can be admitted to theincubation programme. Nonetheless, there are stillbe some businesses that are be admitted directlyinto the programme without undergoing preincubation

SUPPORT TO ENTREPRENEURS• The support to entrepreneurs through theincubation programme has been divided intotwo namely; pre-incubation services andincubation services.• Its key to note that the programme admitsonly highly innovative businesses therefore,few businesses can be admitted annually.

SUPPORT TOENTREPRENEURS: PRE-INCUBATION• Idea generation –innovators’ ideas areassessed to ascertainthe innovation, IP andwhere necessaryintellectual propertyprotection strategiesare developed.

SUPPORT TOENTREPRENEURS:PRE-INCUBATIONPre-establishment studies – develop thebusiness concept• Prepare a feasibility study, where necessary• Conduct a technical assessment• Conduct a market assessment• Develop business model and facilitatecompany registration• Prepare a business plan

SUPPORT TOENTREPRENEURS:PRE-INCUBATIONMentoring and training – the innovators are trained inentrepreneurship and business management skills• The training is aimed at equipping the innovatorswith entrepreneurship and practice based innovationskills• The innovators are encouraged to develop their ownbusiness plans to instil ownership and for them tobetter understand their businesses• Mentoring and training is on-going even during theincubation period.

SUPPORT TO ENTREPRENEURS:Technical support servicesINCUBATION– identifying, sourcing and transfer of suitabletechnologies– advice on intellectual property protection andutilization– Product improvement and linkage to R&DInstitutions– installing, testing and commissioning equipment

SUPPORT TO ENTREPRENEURS:INCUBATION• Business development services– Coaching on how to implement and review a businessplans– Preparation and conducting market surveys– Development and implementation of Marketing strategies– Product launches– Exhibitions to help companies in networking andshowcasing their technologies/products and services– Network activities among the incubatees– Resource mobilization for investment and recapitalisation– Accounting and book-keeping services– Mentoring and entrepreneurship training

SUPPORT TO ENTREPRENEURS:CHALLENGES• Lack of working capital• Inadequate loan fund• Lack of collateral by MSMES• Lack of IP protection• Poor reception of the TEVET Graduate incubationprogramme by college management• Perception that NTBC services must be free since its agovernment agency

SUPPORT TO ENTREPRENEURS:SOLUTIONS TO CHALLENGES• Lack of working capital –Linking clients to financialinstitutions• Inadequate loan fund- Lobbying donors for support to thefund, referring projects to other organisations• Lack of collateral by MSMES- Conversion of loans intoequity by NTBC• Lack of IP protection- provisions of grants for IP protection• Poor reception of the TEVET Graduate incubationprogramme by college management- Re-engineering theprogramme to pilot physical incubation at only one college fora start• Perception that NTBC services must be free since its agovernment agency- Converting NTBC fees into loans

INTERGRATION OF INCUBATOR INTO THE STP• While there are vast similarities between businessincubators and science parks, there are distinctdifferences that exist.• Business incubators are establishments that provideintensive, hands-on support and services to facilitatethe creation and early-stage growth of businesses.• Govt has initiated the process of building a scienceand technology park for NTBC

INTERGRATION OF INCUBATOR INTO THESTP• A successful STP should have a business incubatorthat will provide a complete pre-incubation andincubation programme to the identified innovations.• After graduation from the incubation programme, theestablished businesses can then move to the STPfor sustained growth and continued mentorship.• Within the STP the businesses can also have easyaccess to R&D services that would ensureinnovation, competitiveness and continued growth

CONCLUSION• Government bureaucracy can be a challenge• Incubation is a good learning platform before movingto a Science and Technology Park• Equity participation in companies being supportedposes issues of conflict of interest• Virtual incubation on its own does not offer greatimpact, therefore best if it complements physicalincubation

THANK YOU FOR YOURATTENTIONTHE NATIONAL TECHNOLOGY BUSINESS CENTRE(NTBC)Government Complex, Nasser Road, Kamwala, P.O.Box RW 51310, Lusaka Zambiainfo@ntbc.co.zm or mjtambatamba@ntbc.co.zmwww.ntbc.com