South Africa-based venture finance company Business Partners (formerly known as Small Business Development Corporation) will reportedly invest R400m ($45m) over the next five years in local entrepreneurs with global potential.
Business Partners will invest R80m per year, for the next five years, into globally ambitious start-ups, according to news provider Business Times. This is 10% of the R800m the investor puts into entrepreneurs each year.
Since its foundation in 1981, Business Partners has financed 69000 mostly lifestyle businesses, which employ on average between 15 and 25 people but limited growth potential.
Nazeem Martin, chief executive of Business Partners, told Business Times: “We have got some really bright people, we punch above our weight when it comes to PhDs, research papers being published, patents being registered – but how many of these have been turned into businesses? Not many. We want to work closely with them to help take those ideas to market, not only in South Africa but way beyond.”
But he added that government funding for academics should be based on the ability to commercialise research.
“Our academics are being incentivised in the wrong way: to remain scientists, to continue to do research rather than develop that idea or research further into a sustainable business.”