Mapping Zim’s start-up ecosystem

Ecosystem mapping is the practice of observing, analysing and visualising a start-up ecosystem.

Ecosystem mapping involves creating a map of interconnections between all the people, organisations, ideas and other factors that impact the problem.

Both the mapping process and the actual map are used by the community as a catalyst to collaboratively strengthen the ecosystem. It can help to understand the interactions between different issues and sectors to find new opportunities for action and impact.

Ecosystem maps can serve as a resource guide for start-ups in the community. This article starts with defining start-up ecosystem and listing the element of the ecosystem. It then goes on to identify the players in the ecosystem, analyse the emerging ecosystem and lastly give recommendations for the different ecosystem players.

Start-up ecosystems are a set of interconnected entrepreneurial actors, entrepreneurial organizations, institutions and entrepreneurial processes.

It is a set of interdependent actors and factors, coordinated in order to allow productive entrepreneurship.

Therefore, entrepreneurship occurs in a community of independent actors, where the systemic conditions are the heart of the ecosystem, being formed of networks of entrepreneurs, leadership, finance, talent, knowledge and support services. The presence of those elements and their interaction determine the ecosystem’s success.

The elements of the ecosystem are as follows:

Place: real estate, maker spaces, launch support spaces, offices, programming, and other “third spaces” like libraries, coffee houses, etc.;

Social capital: networking events, entrepreneurial/small business networks;

Financial capital: personal equity, government grants/loans, bank lending tools, private equity (venture capital investors);

Culture: “local attitudes about entrepreneurship” (e.g. Media features on small business and new business announcements, presence of buy local and promotions;

Regulation: community-specific web resources for starting a business, economic development resources, zoning practices that provide for protections while allowing for a broader mix of uses and functions, etc.;

Education & training: local colleges and universities with programmes, diverse access (online, in-person, on-demand);

Human capital: levels of minority and women-owned businesses, youth entrepreneurship programmeming, local universities and colleges in workforce development.

An ecosystem map allows one to:

Build a resource guide;

Tell a story of potential paths and gaps and;

Reduce silos and encourage collaboration.

Players in the start-up ecosystem

Players or actors in the start-up ecosystem include the following; entrepreneurs who aspire to start and grow new businesses:

Talent that can help the company to grow;

Individuals and institutions that are champions and conveners of the start-ups and the ecosystem;

People and institutions with knowledge and resources to help start-ups;

Access points to the ecosystem so that anyone and everyone can participate

Intersections that facilitate the interaction of people,

Ideas and resources;

Stories that tell people about themselves and their ecosystem;

Culture that is rich in social capital-collaboration,

Cooperation, trust, reciprocity and a focus on the common good making the ecosystem come alive by

connecting all the ecosystem elements come together.

Analysis of the emerging ecosystem

Zimbabweans are a creative and resilient people. This attitude means that many entrepreneurs aren’t afraid to get hands-on in whatever task that needs completion. They are also quick to discover new opportunities.

Zimbabwe’s climate is privileged, and the economy is agriculture based. There is an opportunity to promote Agritech, starting with Zi Zimbabwe m as a validation market, and then working in regionalisation. There is still a significant market potential for many business models that have already been validated in regional environments.

Also, Zimbabwe can become a go-to-market for those international start-ups who need to validate products or services aiming at the pyramid’s base. Social entrepreneurship has a place to thrive here.

The key challenge is building investor and mentor networks. While the desire for larger investor networks is common across the country, there is an equally strong need for credible mentors.

There is no coherent or coordinated network of support providers, the resources that exist are ‘siloed’, with organisations not talking to or even aware of each other.

There are very few programmemes in place that provide technical support for the various sectors, but overall there is a lack of formal coordination of these efforts to create maximum impact on the economy.

Furthermore, there is lack of information for entrepreneurs. There is no structure in place whereby, a start-up can easily access market information such as financial products, Micro Small-Medium Enterprises (MSME) grants available, how to set up a business, market linkages information and many more. Additional challenges also include access to markets (i.e. poor infrastructure and isolated geography hampering growth potential), highly variable weather, employment, and reliable internet access.

Zimbabwe’s startup ecosystem is fragmented. There is a high degree of isolation and cluster formation.

The value chain does not start with the ‘What’ but with the ‘Who’. The tendency towards mistrust makes collaboration difficult between entrepreneurs and entrepreneurship support organizations.

Trust is an essential value within any human relationship; therefore, Ecosystem Support Organisations (ESOs) should build it across organisations. One of the gaps is the lack of role models to whom a bigger demographic could relate.

Another cultural aspect that isn’t playing in favour of the Zimbabwe business environment is the lack of organisation by start-ups in terms of consistency in company processes, professionalisation, and correct finance recording.

There are investors in Zimbabwe, but they are investing elsewhere. It is the role of entrepreneurs and ESOs to step up their game to call their attention.

It is the role of the Government to promote policymaking that fosters local investment providing incentives for investors.

The information and resources are scattered and hard to find. The solution is the establishment of startup Zim, which is developing a database profiling everything related to Zim’s start-ups. This initiative centralises information about the ESOs, events, active entrepreneurs, and much more.

When complete one can find events, a map of support organisations, resources, and much more. Another gap is that the investors in the country need support and resources to better understand how to work with start-ups. Also, forming an association around early stage investment could help promote improvements to Zimbabwe’s investment environment.

The solution is that the Institute of Applied Entrepreneurship has an Investor Network which is an association of business angels and investors. It is in the process of registering interested in being investors to finance start-ups.

Women are underrepresented in Zimbabwe’s start-up ecosystem. The solution is the development of women’s clubs, who regularly gather, and provides a space for women to share their challenges and find ways to solve them.

It is also a great place to be inspired by women who are doing amassing things

The ecosystem is formed by clusters that are working separately and duplicating efforts. There needs to be more space for networking and collision to promote the density of relationships.

The solution is that the Institute of Applied Entrepreneurship is available to connect the support organisations, government, and entrepreneurs, and teach more about ecosystem building, and form stronger ties within the community. The role of the Institute is in consolidating the initiatives in the start-up ecosystem and encouraging collaboration between ecosystem support actors.

These key tasks build a community that boosts the creation of new businesses and supports the sustainable development of existing ones.

This can only be achieved actively having open conversations about the state of the start-up ecosystem and its components: strengths, weaknesses, and culture. Community and ecosystem building require lots of interactions and connections on a personal level.

Face to face meetings, key in the construction of social fabric that is the base of successful start-up ecosystems, need to happen on a regular basis; which is why the Institute is offering such services.

Events work as mixers for cross pollination, social exchange, and growth. Large events in the Zimbabwe start-up ecosystem are uncommon.

Event organisers may want to consider the following for events or competitions: Aim to attract as many different clusters as possible. The event can be crucial in making the ecosystem more dense.

Check the dates of other events in the ecosystem. It is not uncommon to have months in which nothing happens, and months in which several events are held the same day.

Allow spaces for networking and collaboration. When organising a competition, make distinctions between start-ups and MSMEs and follow up with them to make sure that the objective of the grant is being achieved.

Recommendations for the ecosystem players

Investment into education systems and training programmes will be key in building human capital and increasing workforce participation.

Efforts are required to increase gender equality and women’s economic participation as this could deliver significant social and economic benefits.

There is need to create an entrepreneur and investor framework for national dialogue as this would be beneficial, so addressing the challenges unique to the nation.

There are common issues in policy and regulation across the nation that, if addressed, would help to increase foreign investment.

More consistent support, rather than short-term programmes, may be valuable. Market access will continue to be an issue, especially given the scale of the logistical challenge. However, improving internet connectivity may be a more simple way to generate growth.

Entrepreneurship support organisation needs:

To embrace diversity and collaboration with other support organisations

Search to establish bridges that serve for the greater good:

A smoother transition between programmes for the start-ups.

Promote diversity and decentralisation

Zimbabwe’s entrepreneurial ecosystem is still very small, and it serves mostly the metropolitan area. The efforts should be broader. There is need for more data, and the need to centralise it to understand the path that is being created for the start-ups.

This can be done by working on improving the Key Performance Indicators and being open about the successes and struggles. There is need to understand the impact offered by support organisation rather than just knowing how many start-ups are being served.

The Government needs to support the emerging ecosystem. They need to work along with ESOs who can help the continuity and invest in programmes that can impact entrepreneurs in every stage. There is need for a lot of support programmes, so the government has to introduce them.

Universities need to create programmes that are open and available to the community as a great way to help constructing the ecosystem. They need to promote and help the creation of start-ups in the all sectors of the economy.

Innovations in such can be validated in Zimbabwe and exported to the rest of the world. Advocate for a change of mindset in the culture and type of business that Zimbabweans create.

According to the Global Entrepreneurship Monitor, half of the University’s graduates are entrepreneurs. Their role in educating on innovation, and industrialisation, is of utter importance.

Investors can be the generation that breaks through the gaps of local investment.

There is need to acknowledge that their role is crucial for a healthy start-up ecosystem. Working with start-ups is different than doing business with more established companies. Moreover, it can be incredibly fulfilling.

Entrepreneurs need to do their homework, it’s essential to research the market and find a programme that suits their business needs.

No entrepreneur should enter into an accelerator programme lightly; they need to really think about what will be expected of them as participants.

They also need clarity on the benefits of the programme. Just because a programme has had success stories doesn’t automatically mean it’s the right fit for them they need to challenge ESOs to provide valuable and tangible services that make a difference in the development and growth of their businesses.

They need to proactively contribute feedback to ESO programmes to encourage a culture of continuous improvement. Entrepreneurs should look into more significant societal problems that they can help solve.

Zimbabwe is an excellent market for validating social start-ups.

Businesses serving the base of the pyramid have a bigger market; and, if the validation is successful, industrialisation can happen quickly.

They should work in making their start-up their own career. It is indeed a difficult journey, but if they network and find the right support organisations, they can find it to be highly fulfilling.

Start-ups need to organise their company from the beginning and focus on having processes, studying and keeping track of finances, promoting the team’s wellbeing, and keeping taxes in order.

They should help prepare for growth and investment and follow through and be consistent. They should defend their reputation as a entrepreneurs by keeping their word. They need to look beyond their immediate social network.

When starting a company, they should not just by partnering with best friends, but start by focusing at their partners’ skillset. It will save them time and money.

Incubators/accelerators need to consider a number of factors during cohort selection. These include scoring and feedback from experienced evaluators, objectives, priorities of the programme, gender, and the ecosystem assessments to be conducted. The strength of the team should be a focal point.

Ecosystem builders are critical in the early stages of ecosystem emergence/ development. Identifying and backing these organisations will have a lasting impact. Lastly, early-stage finance needs will be critical, so this needs to be provided.

Nokuthula G Moyo-Muparuri is a lecturer at the Midlands State University in the Faculty of Business Sciences. She is also the founder of the Institute of Applied Entrepreneurship. The mission of the Institute is business skills development and start-up ecosystem development. The Institute has started an initiative called start-up Zim which is meant to provide all vital information and assistance to help start-ups. The institute is inviting organisations and individuals willing to support start-ups to collaborate in mapping the start-up ecosystem in Zimbabwe. Those interested can contact the Institute on +263718747621.-ebusinessweekly