Small business opportunities within the
Date
2011-06-22
Authors
Swanepoel, Ezánne
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The field of biotechnology is diverse and the industry is immature in comparison to
other sectors. Biotechnology represents the convergence of biology, computer
science, chemistry, physics, and engineering, working in synergy (Cardinal & Opler,
1995). This industry is a starting point for utilising the continent's indigenous
resources to strengthen South Africa, and Africa, economically. By broadening the
scope to include innovation, business can increase opportunities in the industry. This
research aimed to provide insight into four key elements relating to the development
of small business opportunities in the biotechnology industry of South Africa i.e. the
factors influencing small business opportunities; the promoters for and shortcomings
to successful development of small business opportunities; and the varying
stakeholder perceptions with respect to the first three sub-problems.
The research outcome was as follows: The majority of stakeholders agreed that the
factors that have to be considered in order to create or develop small business
opportunities within the biotechnology industry of South Africa are training, industry
structure, funding, barriers to entry and regulatory environment. One of the biggest
challenges for professionals within the biotechnology industry is that they have no
business or entrepreneurial training in their formal degree structure, and therefore they
are not adequately equipped with the knowledge and expertise to seek out small
business opportunities. Further the current industry does not allow for incubation or
implementation of scientific business ideas from the laboratory level to market level,
primarily due to lack of appropriate funding and the regulatory environment.
The various stakeholder groups reached a broad consensus in terms of the type of
shortcomings that the biotechnology industry faces in developing small business
opportunities in South Africa. Business leadership, funding and brain drain were the
most commonly cited shortcomings by the different stakeholders. Due to lack of
business training within the scientific curriculum, most stakeholders were of the
opinion that there should be business leadership in place to assist scientists in making
entrepreneurial/business decisions during product development. Further, due to
changes in the educational system, lack of personal incentives within the working
environment, political pressure and a limited resource capacity many top
3
professionals within the South African system have been lost due to better
opportunities in other countries (brain drain). Other shortcomings pertaining to the
biotechnology industry were high barriers to entry (national and international), a
regulatory environment that does not protect national products, resources or
individuals from international competition, as well as, a fragmented industry (very
powerful private sector that taps the governmental and academic system), which
sometimes led to power play/lack of trust between the stakeholders.
The various stakeholder groups reached a broad consensus in terms of the type of
promoters that the biotechnology industry can use to developing small business
opportunities in South Africa. Business training, funding and weakening barriers to
entry were the top three cited promoters, and all the stakeholders cited weakening of
barriers to entry. Respondents believed that by focusing on these issues, the chances
for a successful implementation process would be enhanced.
Description
MBA - WBS
Keywords
Biotechnology industry, Small businesses