‘However, I soon realised the more I immersed myself in the world of technology, the more it simplified itself. At the end of the day, the 4IR is simply using data to solve business or social challenges,’ says the co-founder and shareholder in a start-up operation that recently ventured into the world of internet of things and by extension the fourth industrial revolution (4IR). The Internet Of Things (IOT) is defined as the interconnection of machines and devices via the internet or other communication networks that allows for the creation of data that can yield analytical insights for businesses, communities, or governments. Now that we know what IOT is, the question is whether South African businesses and governments are ready to outpace the rest of the world in IOT adoption.
The digital era has brought about a fundamental shift in the global economy, pushing the boundaries of innovation and redefining them. Innovations have never been more prevalent, faster and more widespread. Nations that foster a digital and innovative culture have led the global shift toward knowledge-based industries, resulting in extraordinary wealth (and job creation) while transforming the way people live and do business. This shift is made possible by significant tech entrepreneurship activity within a supportive environment that includes contributions from both the government and the private sector.
More and more countries are now desiring a digital economy and in order to live up to these aspirations they are looking into ways to change the fundamentals of their economic structures and to devote more resources to cultivating competitive tech entrepreneurship ecosystems. It is important to establish high-impact tech entrepreneurship as a long-term source of employment. On the business side, rapid and diverse IOT adoption will result in the greatest savings and revenue growth. The current push for a Start-up Act is an important step toward encouraging more innovation and adoption of locally produced IOT solutions.
South Africa's tech ecosystem is notable for its strong government support and abundance of programs aimed at fostering tech entrepreneurship. The government has also discovered a successful mechanism for encouraging private sector participation: the EDS initiative, which rewards private-sector companies that invest in their smaller suppliers with points. As a result, there are both publicly and privately funded initiatives aimed at increasing SME capacity and job creation through incubation, mentoring, office space, advisory, grant, and other support to entrepreneurs, particularly those in developing countries.
South Africa has already led the world in 4G rollout, and our large cellphone network operators will invest billions of rands in 5G network deployment, putting South Africa among the first in the world to have a large-scale 5G network. Skills, particularly in industrial design, graphic design, data analytics, and application development, are another important aspect of IOT mass adoption. South Africa must equip and incentivize its youth, particularly those who are at risk of losing their jobs due to automation and robotics, to re-invent their skill set.
Entrepreneurship is the heartbeat of the economy and it is important to nurture and cultivate tech start-ups as they have the ability to create wealth and jobs. A small start-up idea can grow into a large innovative solution that can change the trajectory of our country. Start-ups, despite their small size, play a significant role in economic growth. The reason for this is that they create jobs, which means lower unemployment rates, and lower unemployment means a more refined and improved economy. Start-ups also create competition and inspire people to be more pioneering and inventive because new entrepreneurs have novel ideas to present, sparking even more innovation and creativity.
Long standing and existing companies need to embrace collaboration as a long-term strategy and resources need to be allocated in order to grow the tech industry. Another thing that the public and private sector needs to do is help develop the start-up supply chain. Buying directly from start-ups and/or giving them indirect access to the enterprise supply chain can go a long way toward assisting small businesses in scaling. And lastly, what the private sector can do apart from financially investing in start-ups, is that they can provide specialised mentoring programmes related to business strategy and development and other guidance.
In a nutshell, tech start-ups have a place in South Africa and anywhere in the world. We are living in a fast-paced environment that requires us to move and adapt accordingly.
