The opportunity to solve a big problem
Africa represents the paradox of both crisis and opportunity. The continent is battling to catch up with its infrastructure backlog, struggling to supply sustainable energy to its growing economies, and is becoming overwhelmed by a massive youth-unemployment problem. Corporate enterprises in Africa have limited capability to absorb employment and so entrepreneurship is seen as one of the most important tools for generating economic growth, solving economic problems and employing the youth.
In excess of 90% of the small businesses operating in Africa are informal, representing survivalist trading in goods and services on a micro-level. Of those small businesses operating formally, 96% fail within a ten-year period with over 50% failing within the first two years.
Business incubation has been used as an economic tool to try to bridge market failure. However, in most instances, such incubation has been ill-conceived, badly run and has produced little or no impact. Additionally, large multilateral organisations have been driving their own models, also with relatively low success rates. Most of the programmes that are currently being run are ad hoc, unmeasured and erratically delivered. This has resulted in a large African market of multilateral organisations, DFIs, mines, corporates and multinationals that are looking for legitimate alternatives for spending their budgets on developing entrepreneurs and getting no results.
Raizcorp has been building and evolving a high-quality incubation process called Prosperation since 2000. In 2007 Raizcorp began to scale its model – first within the borders of South Africa and then across the border to Angola, Tanzania and now Zimbabwe. As Raizcorp has expanded from territory to territory, it has generated great interest from the above-mentioned stakeholders who are looking for effective solutions. Whether their motivation is to fulfil a mandate, to secure a licence to operate, to strategically support their suppliers or whatever the case may be, these stakeholders view Raizcorp as a viable solution to their problem.
For this reason, Raizcorp – through its SEED division – is seeking legitimate licensees to capitalise on this massive opportunity.
Who is the ideal Raizcorp SEED licensee?
We are looking for reputable, caring and financially sound licensees who can use their networks, capital and local market insights to drive our model of entrepreneurial development and growth. To determine if there is a fit with a potential licensee, Raizcorp will examine his or her organisation’s strategy, values, commitment, network, reputation, financial means and ability to help sell or create markets.
We are actively seeking SEED licensees in
(If you are from another country, please do enquire)
The business case for a Raizcorp SEED licensee
Below are just a few of the reasons to embark on a Raizcorp SEED licensing agreement.
There are very few businesses in the world today that can legitimately say that they are doing well financially while also doing good in the world. Our SEED licensees need to be philosophically aligned to a particular values set which requires both these outcomes.
Raizcorp is widely regarded as the premium brand in business incubation globally. In fact, The Economist views Raizcorp as the only genuine incubator in Africa. As such, our SEED licensees can be proud to associate with the brand and be secure in the knowledge that Raizcorp has the ability to execute on any opportunity – large or small – that may present itself.
All too often, entrepreneurial programmes are designed to produce quick wins that ultimately result in a lack of medium-term sustainability. As an example, a programme may be designed to produce turnover growth or increase the number of jobs. Entrepreneurs are encouraged to increase turnover (often at the cost of profitability) and to employ people too early in the business growth cycle. The short-term result is that reporting will show growth, but the medium-term result is the closure of the business and the loss of jobs. Additionally, the entrepreneurs loses the confidence to try again. The net result for the local economic ecosystem is negative. For this reason, all Raizcorp programmes are designed with sustainability in mind.