by Dr. Charles G. Kwesiga
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1 OE1 Uganda Industrial Research Institute Role of incubation in enterprise development by Dr. Charles G. Kwesiga Executive Director Uganda Industrial Research Institute July 12 th,
2 Slide 1 OE1 okumu OLAF ERZ, 03/13/2006
3 Map of Uganda Facts about Uganda Population: Total Area: Land Area: Location: GDP * (est 2004): Approx. 27Million 236,000 Sq. Km 199,710 Sq Km East-Central Africa $39.4 Billion * Based on Purchasing Power Parity Calculation WAITRO 2006 Biennial Congress Saskatoon, SK Canada 2
4 SMEs in development In developing countries: SMEs are the engines of growth and are responsible for most jobs, products, tax revenues, welfare, and development. 3
5 SMEs in development (contd.) In developed countries: SMEs play a vital role in acting as suppliers to large corporations, as well as carrying out innovations for new products and processes. 4
6 WHAT IS AN ENTERPRISE? Entrepreneurs/enterprises are entities that provide a new product or service, or develop methods, procedures, or technologies to produce or deliver existing services more optimally (i.e. lower cost, better quality, improved environment, etc) 5
7 PARTNERSHIP/STAKEHOLDERS IN THE DEVELOPMENT OF SMEs UIRI University and Other Research Institutions COLLABORATION IN RESEARCH MANPOWER AND ADVISORY SERVICES E N T R E P R E N E U R S H I P Processes R&D Skills Incubation Innovations Products T E C H N O L O G Y SKILLS IMPROVEMENT MANPOWER Technical and Tertiary Institutions Industry (Private Sector) 6
8 WHAT IS INCUBATION? The process of helping and nurturing start-up businesses so that they grow into sustainable enterprises 7
9 Incubator operational model The incubation facility is designed to support qualified start up businesses in order to build entrepreneurial capacity for self-sustenance. This involves providing common facilities such as physical space, shared services, skills training, business and legal advice to facilitate the operation of selected entrepreneurs and assist them until graduation, i.e. when they have the capacity to survive on their own. 8
10 INNOVATION AND INCUBATION INNOVATION INCUBATION PRODUCT ENHANCEMENT BASIC RESEARCH R&D R&D Applied Research P R O T O T Y P I N G COMMERICIALISATION MARKET DOMINANCE NEW MARKET 9
11 ISLANDS OF ACTIVITY AND BRIDGES OF ACCESSIBILITY Science and Basic Research R & D Innovation Incubation & Prototyping Success of an Enterprise Marketing & Promotion from an advert for CEMEX Commercialization 10
12 CONNECTION BETWEEN BASIC SCIENCE AND ECONOMIC DEVELOPMENT Data and Information Better/New Knowledge Products Science and Training Research and Development (Experimentation) Technology Economic Development Processes Materials Solutions at systems level 11
13 INCUBATION AT UIRI Types: 1. Virtual Incubation 2. In-house Incubation 12
14 WHAT DO WE OFFER? Shared resources Networks Uganda Industrial Research Institute Mentoring (esp. in entrepreneurship) Facilities 13
15 THE PRODUCT VALUE CHAIN: BRINGING IT ALL TOGETHER Facilitators Are Sales personnel FINANCE MICROFINANCE, BANKS, ETC. LOCAL SHOPS & SUPERMARKETS TRAINING & EXTENSION SERVICES (NAADS) FARMER/FARM MAIN PRODUCT (HARVEST) POST HARVEST HANDLING VALUE ADDED PRODUCTS MARKET C O N S U M E R TECHNOLOGY (FARM IMPLEMENTS AND OTHER INPUTS RESEARCH (NARO, NAADS) BASIC AND APPLIED RESEARCH EXPORT MARKET AGROPROCESSING (TECH. DEV T) Facilitators Are EPB; AGOA 14
16 MAINSTREAMING ICT (Infodev and UIRI) STEP 4: e-governance e-education e-health STEP 3a: ICT incubation for enterprises STEP 3b: Enhanced infrastructure and networking STEP 2a: Pilot: ICT-use as a tool to improve competence of SMEs STEP 2b: Expand to Government agencies, district leaders, admin. STEP 2c: Expand to private sector and SMEs STEP 1a: 3 x Pilot ICT & Training Centers in place STEP 1b: Expand to district Gov t offices STEP 1c: Expand to urban and rural schools STEP 1d: Expand to urban and rural hospitals Projects already underway 15
17 CONTACT US Uganda Industrial Research Institute Nakawa Industrial Area Plot M 217 P.O. Box 7086 Kampala Tel: / 124 Fax: mail@uiri.org / uiri@utlonline.co.ug Website: 16
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