MIT Solve

Solution Overview

Solution Name:

Virtual Bizcubation program

One-line solution summary:

This is a virtual businnes incubation program that supports start-ups entrepreneurs to start, grow and sustain enterprises creating jobs

Pitch your solution.

Globally start-ups contribute a huge percentage to the growth of economies of many countries. However most small and medium enterprises registered a stagnant growth or completely seize to exist due to lack of knowledge and skill on how they can run and grow enterprises. At the same time investors shun to invest in them as they are risky businesses due to lack of security.

Through the Virtual Bizcubation program we will support young people in Malawi with skills and knowledge to developing business ideas, running a business and growing their enterprises. We will also support them by providing access to financial resources that are had to secure from the commercial financial service providers.

Bizcubation supports innovations that brings a positive impact to people, economy and the environment. the program support social entrepreneurs that are ready to make profits, conserve environment and create jobs for others.

What specific problem are you solving?

Every year, over 10, 000 fresh graduates walk out from the Malawi tertiary institutions graduating with advanced diplomas and degrees. However, the Malawi economy only absorbs one third of the total graduates leaving many unemployed.

Due to the high unemployment rate in the country, most young people opt to start businesses as such experiencing losses due to inadequate knowledge a capacity to running enterprises. At the same time they do not have access to productive resources including land and finances due to security and in other cases cultural factors

According to a report by MENON publications of 2010 on SME growth in Sub-Saharan Africa, Growth opportunities in Africa are severely hampered by access to finance and stable supply of electricity. Where micro companies meet several assisting financial measures, there seems a lack of instruments supporting the more established, yet still vulnerable SMEs.

What is your solution?

Bizcubation aims at nurturing startup businesses through business development support for growth and success. Through the program we shall build the capacity of the enterprises with focus on their networking skills, openness and willingness to learn and passion to grow their enterprise. Through the program, participants will undergo three months intensive training and three months implementation support which include a 7-day boot camp on pitching and investment readiness, one on one coaching and learning visits to existing successful enterprises.

Who does your solution serve, and in what ways will the solution impact their lives?

The solution targets young entrepreneurs who want or are currently running a business. The solution will impact their lives by

increasing knowledge, focus and direction on entrepreneurship opportunities in Malawi,
Increase in productivity of startup entrepreneurs in a period of 2 years,
Creation of new job opportunities every 2 years through the startup enterprises in Malawi,
Increased partnership and client base among entrepreneurs,
Improved access to financial support Increased investments through the established angel investors network as well as the enterprise development fund

Which dimension of the Challenge does your solution most closely address?

Enable small and new businesses, especially in untapped communities, to prosper and create good jobs through access to capital, networks, and technology

Explain how the problem, your solution, and your solution’s target population relate to the Challenge and your selected dimension.

Most start up and early stage businesses display stagnant growth or failure due to lack of direction and knowledge on how to grow their enterprise with a 90% rating the throughout Africa. Mzuzu E-Hub has been a major support system for startups at seed and early stage levels and we have identified some of the key challenges that lead to stagnant growth for startups in Malawi including; market research, limited knowledge on financial management, lack of leadership skills and professional etiquette, limited access to business development support services and access to financing.

In what city, town, or region is your solution team headquartered?

Mzuzu, Malawi

What is your solution’s stage of development?

Growth: An organization with an established product, service, or business model rolled out in one or, ideally, several communities, which is poised for further growth

Who is the primary delegate for your solution?

Programs Manager