Theoretical Framework for Structured Incubators to Address Macroeconomic Problems

Diploma Thesis from the year 2023 in the subject Economics - Macro-economics, general, grade: Post Doc- Accepted., , course: Post Doc, language: English, abstract: This study aims to investigate the possibility of creating structured, entrepreneurial incubators to address macroeconomic problems. Various countries face Macro Economic problems such as energy, pollution, water shortage, and unemployment. Formal SMEs contribute up to 40% of GDP in emerging markets and provide 70% of employment. The possibility of incubating SMEs to address Macro Economic Problems should be investigated to stimulate the Economic Emancipation of the youth. The principle of a 'structured incubator' is born from the problem that the formal economy can no longer supply the required growth in 'jobs' that our society needs. Instead, economies must create 'marginal' capacity and new industries to facilitate the 'economic emancipation' of its people. Business incubation is one of the most viable tools for increasing the number of small businesses. South Africa needs a new framework to develop the structured incubators' role in creating small businesses. Such structured incubators would need to capacitate themselves to take entrepreneurship to scale. New SMEs can be developed in construction, catering, water saving, e-waste, hairdressing, plastic recycling, retail, trade, solar, and many other industries if individuals can be capacitated in cohorts to become SMEs. The need for structured incubators is supported by a literature review, a survey of youth needing economic emancipation, an industry analysis and the researcher's experience in training young entrepreneurs. The grounded theory approach is used to identify concepts and categories that inform the themes in support of structured incubators. Given the above, we must equip people with skills to become less dependent on the state. Macroeconomic problems should be viewed as the source from where SME opportunities emerge. A framework for capacitating structured incubators that can develop large numbers of young people in cohorts must be developed. Such incubators must be capacitated, as current incubators are not developing entrepreneurs at scale. Individuals in need of economic emancipation could be trained to operate as SMEs and provide more employment. The study suggests that structured incubators could solve macroeconomic problems, like poverty, unemployment, and the need for economic growth. A new structured incubator framework should aim to identify and develop young people into successful small enterprises.

Dr Wynand Goosen is the CEO of the Infomage Rims group from where he constantly launches various strategic initiatives in the Skills Development sector, such as: •Developed the first Skills Development Facilitator Program for South Africa •Developed the first New Venture Creation Program for Entrepreneurial thinking •Facilitated various Strategic Development workshops for a range of clients in private and public sector •Created international collaborative frameworks between South Africa and the European Union •Represented South Africa on various international business platforms •Developed a range of Foresight and Innovation Tools for Strategic Planning •Devised an incubation system for start-up enterprises •Scoped and developed Management Information Systems and developed ITC solutions •Developed systems to link strategy to strategic implementation, that drives execution and productivity Dr Goosen has also created various successful companies. These includes organisations such as The Learning Corporation Ltd; The Infomage Rims Group; SkillzBook and Gold Rose Investments. 'Strategy is often developed using generic tools. However, each organisation is different, and nuances and culture play important roles in creating strategies that are implementable, effectively measurable and sustainable. Systems need to focus on simplification and implementation, not complication' B.Ms; ND(Project Man); AIB(SA); (NC: Business Advising) BCOM(Hons); (NC:Software Dev); BSC(Hons)(Digital Skills); MCOM; M; M.Msc; D.Msc; DBA; & PhD