Technological entrepreneurship: financing new technology based enterprises in South Africa

Koekemoer, D.J.; Kachieng'a, M.O.

doi:10.1109/iemc.2002.1038472

Cited by 4 publications

(4 citation statements)

References 3 publications

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“…The GVC among other things offers seed capital to high potential but early stage technology firms to trigger growth (Government of South Africa, 2015). The fund primarily supports commercialization of technology-focused innovations to help create jobs and wealth for the citizenry (Government of South Africa, 2015; Koekemoer and Kachieng'a, 2002). Since its introduction, the fund has supported many businesses with some relative successes but largely, most businesses failed to achieve commercial success resulting in low capital recovery rates.…”

Section: Applicationmentioning

confidence: 99%

A decision making model for selecting start-up businesses in a government venture capital scheme

Afful-Dadzie

Afful-Dadzie²

2016

Management Decision

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Purpose The paper proposes an intuitionistic fuzzy TOPSIS multi-criteria decision making (MCDM) method for the selection of start-up businesses in a government venture capital (GVC) scheme. Most GVC funded start-ups fail or underperform compared to those funded by private venture capitals due to a number of reasons including lack of transparency and unfairness in the selection process. By its design, the proposed method is able to increase transparency and reduce the influence of bias in GVC start-up selection processes. The proposed method also models uncertainty in the selection criteria using fuzzy set theory that mirrors the natural human decision making process. Design/methodology/approach The proposed method first presents a set of criteria relevant to the selection of early stage but high potential start-ups in a Government Venture Capital (GVC) financing scheme. These criteria are then analyzed using the TOPSIS method in an intuitionistic fuzzy environment. The intuitionistic Fuzzy Weighted Averaging (IFWA) Operator is used to aggregate ratings of decision makers. A numerical example of how the proposed method could be used in GVC start-up candidates’ selection in a highly competitive government venture capital scheme is provided. Findings The methodology adopted increases fairness and transparency in the selection of start-up businesses for fund support in a government-run venture capital scheme. The criteria set proposed is ideal for selecting start-up businesses in a government controlled venture capital scheme. The decision making framework demonstrates how uncertainty in the selection criteria are efficiently modelled with the TOPSIS method. Practical implications As government venture capital schemes increase around the world, and concerns about failure and underperformance of GVC funded start-ups increase, the proposed method could help bring formalism and ensure the selection of start-ups with high success potential. Originality/value The framework designs relevant sets of criteria for a selection problem, demonstrates the use of extended TOPSIS method in intuitionistic fuzzy sets and apply the proposed method in an area that has not been considered before. Additionally, it demonstrates how intuitionistic fuzzy TOPSIS could be carried out in a real decision making application setting.

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Section: Applicationmentioning

confidence: 99%

A decision making model for selecting start-up businesses in a government venture capital scheme

Afful-Dadzie

Afful-Dadzie²

2016

Management Decision

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“…The country has the most advanced economy on the African continent, with several high-tech firms controlled by both domestic and foreign investors. Historically, however, rates of technological entrepreneurship in South Africa have varied, reflecting the uneven distribution of technology(Koekemoer & Kachieng'a, 2002). Cities and industrialised areas have a high concentration of technological entrepreneurship, with some of these cities having worldclass technology and innovation clusters.…”

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confidence: 99%

Technological entrepreneurship readiness

Ndofirepi,

Steyn

2024

JBS

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Technological entrepreneurship presents opportunities for accelerated growth during the Fourth Industrial Revolution and assessing the readiness for such entrepreneurship would be important to investors (interested in profit) and governments (interested in economic growth). The aim was to assess and rank the BRICS (Brazil, Russia, India, China, and South Africa) countries on their level of technological entrepreneurship readiness, as to direct investor funding or alternatively guide government initiatives. Data which was collected in Brazil, Russia, India, China, and South Africa, for the World Values Survey, was used in the study (N=13 895). Mean and composite scores linked to entrepreneurship as well as the embracement of technology were compared across countries. These were combined to generate a score used to rank the countries. With each of the individual, as well as the composite variables, significant differences were found across the BRICS countries. China was rated the highest on attitudes towards science while South Africa was rated highest on the openness to entrepreneurship. On the composite score, technology entrepreneurship readiness, China scored the highest. China was ranked as the BRICS countries most viable for technology entrepreneurship. Technology investors should thus consider directing their venture capital eastward. The governments of the other countries should take note of their shortcomings and the results could inform policies to enhance readiness. The results, at a theoretical level, provided some insights into the conceptualisation of technology-related entrepreneurship.

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“…The financing of technology based start-ups have been researched by Koekemoer and Kachieng'a [9]. They reported that only 25% of the $3.3billion invested in 2000 in South Africa was done during the seed, start-up and early stages of all types of enterprises, while the manufacturing, services and information technology sectors had the largest share of these funds.…”

Section: Present Body Of Knowledgementioning

confidence: 99%

“…The drive in the research domain of start-up financing has been to identify the needs of the technological enterprise in the various stages of development, from the embryo or seed stage through the growth stages to maturity. The new venture financing patterns and needs of the technological and commercial entrepreneurs in the developing or emerging world has also been studied to a large extent [9] [12]. The focus is again on the need for and availability of venture capital in the formal business and Government aided fund organizations.…”

Section: Introductionmentioning

confidence: 99%

New technological ventures: start-up financing trends in South Africa

Lotz¹,

Buys²

Proceedings. 2005 IEEE International Engineering Management Conference, 2005.

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Financing the new technological venture in the developed world is well researched and documented. The focus by international researchers and authorities in this field has been on the funding trends of high-tech enterprises through venture capital (VC) fund organizations, either in the private sector of the economy or through Government backed institutions.Research was conducted by the University of Pretoria on technological entrepreneurship in an emerging economic region. Data was gathered through questionnaires from entrepreneurs in technology based businesses operating in KwaZulu-Natal, which is one of nine provinces of South Africa. The data was analyzed statistically and significant relationships between environmental predictors and dependent variables such as start-up financing by the founder(s) and by external parties were identified. The findings help to understand the funding needs of a typical technological entrepreneur who establishes his or her new medium technology based enterprise in a developing society, as well as environmental effects on this aspect of the venture creation process. The findings could be useful to VC funding firms and organizations in emerging countries in their strategic planning and policy decisions.

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Technological entrepreneurship: financing new technology based enterprises in South Africa

Cited by 4 publications

References 3 publications

A decision making model for selecting start-up businesses in a government venture capital scheme

A decision making model for selecting start-up businesses in a government venture capital scheme

Technological entrepreneurship readiness

New technological ventures: start-up financing trends in South Africa

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