Pretoria — Trade and Industry Minister Rob Davies is set to launch a programme to encourage private sector partnership with government to support incubators that will develop small business.
Davies will on Sunday launch the Incubation Support Programme (ISP) which is aimed at encouraging the private sector partnership with government to support incubators in order to develop small, medium and micro enterprises (SMMEs) so that these are nurtured into sustainable enterprises that can provide employment and contribute to economic development.
The incentive is provided in pursuit of ensuring that small micro and medium enterprises are eventually graduated into the mainstream economy through the dedicated support provided to the incubators, thus creating successful enterprises with a potential to revitalise communities and strengthen local and national economies.
"This is one of the best platforms that a country can use to promote broader economic participation, uplift the country's entrepreneurial base and encourage start-up activities," said Davies.
ISP will be effective from the 16 September 2012 and will be administered for a period of 10 years up to March 2022.
Davies said the programme is envisaged to bring enterprises from a survivalist stage and informal economy into being the main players in the mainstream economy.
"It is without a doubt that the incubation programme cannot be successfully undertaken by a single player in the economy. It is for this reason that government is forging as well as calling for partnership with business, in meeting the target of establishing of 250 new incubators by 2015," explained Davies.
Davies added that the support the incubators will receive can be used for infrastructure and business development services necessary to mentor and grow enterprises. The package of support offered by the dti to incubators on cost-sharing basis will be 50:50 for large businesses and 40:60 for small micro and medium enterprises.
The programme will be open for applications on1 October 2012, with a web-enabled application facility available from the 26 October 2012.
The ISP will be launched at the opening of the 37th annual International Small Business Congress (ISBC) hosted by the dti from 15 to 18 September 2012 at the Sandton Convention Centre, Johannesburg.