- Title
- An exploratory case study of accelerator programmes in the Republic of South Africa
- Creator
- Mametse, Mmankitseng Lerato
- Date Issued
- 2019
- Date
- 2019
- Type
- text
- Type
- Thesis
- Type
- Masters
- Type
- MBA
- Identifier
- http://hdl.handle.net/10962/92639
- Identifier
- vital:30737
- Description
- South Africa is facing a challenge of poverty, unemployment and low growth. Government has identified the small and medium-sized business (SME) sector as one of the ways through which to combat these challenges. Government has also set up programmes and agencies to support SMEs in their search for funding and other kinds of support. South Africa, however, has one of the highest rates of SME failures in the world, with the majority not surviving beyond three years. Alternative interventions are therefore required to support South Africa’s SMEs to become sustainable companies beyond three years and to contribute positively to economic growth, poverty alleviation and job creation. This paper explores one kind of intervention that has been used internationally and that is increasingly being adopted in South Africa. Accelerator programmes, aimed at supporting start-ups to get to the next level of their development, have been growing in numbers around the world, trying to replicate the success of the original accelerator programme – the Y Combinator – which was responsible for the success of household names such as Airbnb and Dropbox. Accelerator programmes help start-up companies define and build their initial products, identify promising customer segments, and secure resources, including capital and employees. By making these necessary resources available to start-ups, it may be possible to ensure that fewer start-ups fail and more SMEs remain sustainable into the future. Several accelerator programmes have been founded in South Africa, all with a similar aim: to accelerate the development of start-ups that have the potential to grow exponentially given access to the right resources. This paper examines how South African accelerator programmes work in terms of the key resources made available to the start-ups that participate in their programmes. An increasing number of academic papers have been written on accelerator programmes internationally, but little information is available for the South African context. This research study investigated the phenomenon of accelerator programmes in South Africa through the lens of Resource-based Theory. The theory posits that, in order to gain a sustained competitive advantage, companies need to utilise their resources (including physical, human and organisational) in a manner that is effective and efficient, both internally and externally. The research answers the following questions: How do accelerator programmes work in South Africa? What value (in terms of resources offered) do they claim to bring to start-ups that go through their accelerator programmes? An exploratory case study method was selected to understand the phenomenon of accelerator programmes in South Africa. Purposeful sampling was used in the selection of accelerator programmes, as it allows for the selection of information-rich cases. The research findings indicate that accelerator programmes in South Africa follow the structure of providing start-ups, over a period between three months and one year, with resources that will assist them to be successful into the future. The investigation finds that human and financial resources are some of the most valuable resources that accelerator programmes provide to start-ups to help progress these start-ups to their next level of development. The most important resource is mentorship from knowledgeable industry players who are themselves entrepreneurs. Access to networks to gain access to the market, as well as funding, is also made available by accelerator programmes. This investigation provides a glimpse of the accelerator programme phenomenon in South Africa and highlights the important role that mentorship from experienced entrepreneurs, and access to markets and funding, play in the development of start-ups.
- Format
- 87 leaves
- Format
- Publisher
- Rhodes University
- Publisher
- Faculty of Commerce, Rhodes Business School
- Language
- English
- Rights
- Mametse, Mmankitseng Lerato
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