SATeC Services Entry and Exit Policy
The evaluation panel will consider the following, as applicable:
- The entrepreneur should have a business plan outlining at least the technology to be used by the business, the potential market for its products, processes or services, number of jobs to be created, forecasted incomes and expenditures for at least three years, and references of the entrepreneur. If the entrepreneur does not have a business plan, SATeC staff will assist the entrepreneur to draw up a basic business plan.
- An interview will be conducted with the entrepreneur, to determine whether he/she is strong and business minded, prepared to work with SATeC staff, willing to pay rent and other
- costs, is in the business full-time, and whether he/she has the right entrepreneurial characteristics.
- A background investigation is done on the entrepreneur.
- An entrepreneurial test will be done to determine the entrepreneur's decision making skills.
- Finally an initial diagnosis of the business/potential business will be done to analyse the entrepreneur, the machinery and staff needs.
When the evaluation panel is satisfied that the entrepreneur/ SME satisfies the exit criteria, the necessary contracts and agreements are prepared by SATeC staff, to be signed before the entrepreneur/SME becomes a tenant in SATeC.
There are no hard and fast rules for determining the graduation/exit of the entrepreneurs from the SATeC. However, the following will assist in determining whether an entrepreneur is ready to exit from the SATeC:
- Does he/she request assistance of the SATeC staff less than once a week?
- Does he/she know how to cost his/ her products, processes or services?
- Does he/she market his/her products/processes/ services/business properly?
- Does he/she operate a diary and keep to appointments?
- Could he/she overcome problems in dealing with his/her customers or his/her suppliers on his/her own?
- Does he/she manage his/her finances in a proper manner and does he/she have a good relationship with his/her bank manager?
- Could he/she overcome problems in dealing with his/her staff on his/her own?
- Does he/she submit his/her statutory returns timeously?
- Are there proper systems in the business e.g. production, stock-take, human resources, filing, personnel records and wages?
- Does he/she know how to do stock takes?
- Is he/she able to prepare simple bank reconciliations?
- Has he/she been able to invest his/her money wisely?
- Does he/she have business premises to move to?
If the answers to at least 10 of the above questions are YES, the entrepreneur should be ready to graduate from the SATeC. However, the Centre Manager and/or Business Advisor who has worked with the incubatee over a period of time should do some fore sighting and risk analysis as inputs into the decision about graduation.
Services Provided to Clients
Technology Support -The SATeC, in collaboration with a wide network of service providers, can provide a wide range of technology incubation services to clients (incubatees), including:
- Specification of the product/s to be manufactured
- Specification of production processes
- Assessment of the manufacturability of the product/s
- Manufacture of prototype products
- Specification of production system and materials
- Assessment of manufacturing risk
- Pilot production -Sourcing of technology, equipment and materials
- Technical analysis of existing production system
- Determination of the cost of manufacture
Business Mentoring - The SATeC, in collaboration with a wide network of service providers, can provide business incubation and business nurturing services to clients (incubatees), including:
- Market research
- Mentoring facilitation
- Partnering and network assistance
- Accounting and financial management support
- Financial modelling
- Assistance with business planning
- Tax assistance
- Sourcing of developmental funding
- Sourcing of venture, equity or asset finance
- Proprietary information and patents.
Training - All SATeC clients will undergo a skills gap analysis, the results of which will indicate what areas require training. The SATeC, in collaboration with a selected network of Training Service Providers, provides a comprehensive range of training courses to SATeC clients such as:
- Entrepreneurial skills
- Leadership skills
- Interpersonal skills
- Personal management skills
- General business skills
- Financial management
- Marketing management
- Human Resource management
- Legal management
- Lessons learnt in successful enterprises
Common Services - these include secretarial support; telephone answering and common reception and mailing facilities, access to computers and other office equipment and meeting rooms. Canteen facilities will also be explored.
Networking Services - business relations will be encouraged inside SATeC to cross-fertilize ideas and advice between tenants on how to create linkages with industry players. The following services will be offered as referrals and networking relationships with other service providers:
- Referrals to relevant partners in areas of training and development, access to finance and logistics support where necessary.
- Ensure constant liaison with industry regarding use of SMEs in the automotive industry towards sensitizing the industry in respect of BEE and their approach to it and towards
- target groups viz. Women, youth and persons with disabilities.
- Referrals to specific support agencies addressing the special needs of persons with disabilities and youth.
- Access to Finance and Specialist Advice (including networking with Business Angels)
- After-care and Outreach Services
SATeC Entry Criteria
The following criteria have to be satisfied by any entrepreneur or SME who wants to become an incubatee of SATeC:
- The business must be in the automotive industry.
- The business must be technology-driven.
- The products, processes or services must have a sizeable market locally and have export potential.
- The entrepreneur must be strong and business-minded and not just a survivor.
- The entrepreneur must be prepared to work with SATeC staff.
- The entrepreneur must be willing to accept assistance from SATeC staff.
- The entrepreneur must be honest in his/her dealings with SATeC staff.
- To measure the impact of the incubator, the entrepreneur needs to agree to participate in surveys based on incubation metrics (e.g. indicate into which band of turnover they fall in, etc.).
- The business must demonstrate growth potential and job creation.
- The entrepreneur must be willing to pay rent and other costs as incurred by the business.
- The entrepreneur must be in the business full-time.
- The area of focus should not be in direct competition with other tenants in SATeC.
- The entrepreneur must have financial resources or be creditworthy in order to access funding from a financial institution.
- The entrepreneur must supply Curriculum Vitae of him/ herself.
When a new entrepreneur and/or SME wants to become a tenant of SATeC, an evaluation panel consisting of the Centre Manager, Business Advisor (as applicable) and two members of the EXCO, will evaluate the application of the entrepreneur/ SME, to determine whether the entry criteria are satisfied.