Tech Hubs Africa
Tech Hubs Africa
Tech Hubs Africa
In partnership with
7HFKKXEVLQ$IULFD
+RZFDQWKH\VXSSRUWVWDUWXSV
DFURVVWKHFRQWLQHQW"
7HFKKXEVLQ$IULFD
$ERXWWKHSDSHU
$IULFDQWHFKKXEVSOD\DQLPSRUWDQWUROHLQEXLOGLQJIOHGJOLQJHQWUHSUHQHXULDOHFRV\VWHPVDQGKHOSLQJVWDUW
XSVEXWWKH\VWUXJJOHWRHDUQUHYHQXHDQGEHFRPHILQDQFLDOO\VXVWDLQDEOH
7KLVUHSRUWEDVHGRQLQWHUYLHZVZLWKGR]HQVRIKXEVDFURVV$IULFDH[DPLQHVZKDWKXEVGRKRZWKH\PDNH
DQ LPSDFW DQG ZKDW WKH\ FDQ GR WR HQVXUH WKHLU RZQ VXVWDLQDELOLW\ /HDUQLQJ IURP EHVW SUDFWLFHV RQ KXE
RSHUDWLRQV DQG EXVLQHVV PRGHOV VKRXOG KHOS IRXQGHUV WKLQN GLIIHUHQWO\ DERXW KRZ WR DFKLHYH ILQDQFLDO
VXVWDLQDELOLW\
7KLV UHSRUW LV DOVR PHDQW DV D WRRONLW HQDEOLQJ JRYHUQPHQWV DQG IXQGHUV WR LQYHVW VXFFHVVIXOO\ LQ WHFK
HQWUHSUHQHXUVKLSVXSSRUWLQIUDVWUXFWXUH
3XEOLVKHU,QWHUQDWLRQDO7UDGH&HQWUH,7&
7LWOH7HFKKXEVLQ$IULFD+RZFDQWKH\VXSSRUWVWDUWXSVDFURVVWKHFRQWLQHQW"
3XEOLFDWLRQGDWHDQGSODFH*HQHYD$XJXVW
3DJHFRXQW
/DQJXDJH(QJOLVK
,7&'RFXPHQW1XPEHU6(&(
&LWDWLRQ ,QWHUQDWLRQDO 7UDGH &HQWUH Tech hubs in Africa: How can they support tech start-ups across the continent? ,7&
*HQHYD
)RUPRUHLQIRUPDWLRQFRQWDFW0DUWLQ/DEEpODEEH#LQWUDFHQRUJ
)RUPRUHLQIRUPDWLRQRQWKHWRSLFVHHZZZLQWUDFHQRUJQWI
,7&HQFRXUDJHVWKHUHSULQWLQJDQGWUDQVODWLRQRILWVSXEOLFDWLRQVWRDFKLHYHZLGHUGLVVHPLQDWLRQ6KRUWH[WUDFWVRIWKLVSDSHUPD\EH
IUHHO\ UHSURGXFHG ZLWK GXH DFNQRZOHGJHPHQW RI WKH VRXUFH 3HUPLVVLRQ VKRXOG EH UHTXHVWHG IRU PRUH H[WHQVLYH UHSURGXFWLRQ RU
WUDQVODWLRQ$FRS\RIWKHUHSULQWHGRUWUDQVODWHGPDWHULDOVKRXOGEHVHQWWR,7&
'LJLWDOLPDJHRQWKHFRYHU,7&
,QWHUQDWLRQDO7UDGH&HQWUH,7&
,7&LVWKHMRLQWDJHQF\RIWKH:RUOG7UDGH2UJDQL]DWLRQDQGWKH8QLWHG1DWLRQV
LL
7HFKKXEVLQ$IULFD
)RUHZRUG
+RPHJURZQ LQIRUPDWLRQ DQG FRPPXQLFDWLRQV WHFKQRORJ\ FRPSDQLHV DUH VXSSRUWLQJ WKH GLJLWDO
WUDQVIRUPDWLRQRIWKH$IULFDQFRQWLQHQW
1HZEXVLQHVVHVDFURVVWKHFRQWLQHQWDUHEULQJLQJGLVUXSWLYHEXVLQHVVPRGHOVDQGLQQRYDWLRQµPDGHLQ$IULFD
IRU$IULFD¶7KHFKDOOHQJHVRQWKHLUSDWKWRJURZWKDUHQXPHURXVKRZHYHUDQGPDQ\GRQRWVXUYLYHWKH
VWDUWXSSKDVH
5HVHDUFKVKRZVWKDWWHFKKXEVFDQLPSURYHWKHVXUYLYDOUDWHRIVWDUWXSV7KLVSXEOLFDWLRQFRQWULEXWHVWRWKH
DYDLODEOH UHVHDUFK IRFXVLQJ RQ KRZ WHFK KXEV FDQ HQVXUH WKHLU RZQ VXVWDLQDELOLW\ LQ RUGHU WR SURYLGH
VXVWDLQDEOHVXSSRUWWR$IULFDQHQWUHSUHQHXUV
7KHSXEOLFDWLRQLVQRWDGLUHFWRU\RIVXFFHVVIXOKXEV$IWHUDOOWHFKKXEVDUHQRWDXWRPDWLFDOO\WKHDQVZHU
DQGPLJKWVRPHWLPHVQRWHYHQEHWKHRSWLPDODSSURDFK7KH,QWHUQDWLRQDO7UDGH&HQWUH¶V,7&RZQDQDO\VLV
KDVVKRZQWKDWWHFKKXEVZLWKRXWFOHDUYDOXHSURSRVLWLRQVWRWKHHFRV\VWHPDQGWKHHQDEOLQJFRQGLWLRQVWR
VXSSRUWWKHPWHQGWRVWUXJJOH
7KHUH LV DOVR VRPH VFHSWLFLVP DERXW ZKHWKHU KLJKSRWHQWLDOKLJKJURZWK VWDUWXSV UHDOO\ QHHG WHFK KXEV
6RPHDUJXHWKDWWKHPRVWSURPLVLQJEXVLQHVVHVGRQRWHPHUJHIURPWKHVHW\SHVRILQVWLWXWLRQVZKLOHRWKHUV
VHHWKHVHKXEVDVFRQWULEXWLQJWRDFXOWXUHRILQQRYDWLRQDQGGLJLWDOHQWUHSUHQHXUVKLSHVSHFLDOO\LQSDUWVRI
WKHFRQWLQHQWZKHUHWKHGLJLWDOLQIUDVWUXFWXUHLVQRWDVPDWXUHDVLQRWKHUV
7KLVUHSRUWVKDUHVLQVLJKWVLQWRKRZKXESUDFWLWLRQHUVYLHZWKHLUDELOLW\WRKHOSVWDUWXSVDQGWKHDFWLYLWLHV
WKH\ PLJKW ZDQW WR XQGHUWDNH EXW FDQQRW GXH WRUHVRXUFH FRQVWUDLQWV ,W DOVRWRXFKHVRQ KRZ WHFK KXEV
WKHPVHOYHVDVVHVVWKHLULPSDFWLQWKHVXSSRUWWKH\SURYLGHWRKLJKJURZWKVWDUWXSV
7KLVUHSRUWDOVRGLVFXVVHVZKHWKHUVXSSRUWLQJVWDUWXSVLVILQDQFLDOO\YLDEOH&OHDUO\WKHUHLVDQH[SHFWDWLRQ
WKDWKXEVPRQHWL]HWKHLUVHUYLFHVWRHQVXUHWKHLUILQDQFLDOVXVWDLQDELOLW\:KHQWKHDQVZHULV\HVWKHUHSRUW
SURYLGHVDQRYHUYLHZRIWKHEHVWSHUIRUPLQJVHUYLFHV
)LQDOO\WKHSXEOLFDWLRQLGHQWLILHVJDSVDQGRSSRUWXQLWLHVIRUJRYHUQPHQWVXSSRUWDQGIURPWKHGHYHORSPHQW
FRPPXQLW\7KLVLQFOXGHVFDSDFLW\EXLOGLQJIRUWHFKKXEVWRIXOILOWKHLUPLVVLRQ
7KLVSXEOLFDWLRQLVWKHUHVXOWRIDMRLQWSDUWQHUVKLSEHWZHHQWKH,QWHUQDWLRQDO7UDGH&HQWUH$IULF¶LQQRYDQG
WKH,PSDFW+XE1HWZRUN,KRSHLWZLOOSURYLGHXVHIXOLQVLJKWVDQGDGYLFHWRWHFKKXEIRXQGHUVDQGPDQDJHUV
DVZHOODVWRSROLF\PDNHUVORRNLQJIRUHIILFLHQWDQGHIIHFWLYHZD\VWRLQYHVWLQWUDGHDQGLQYHVWPHQWVXSSRUW
LQVWLWXWLRQVRIDQHZNLQGWRWKHEHQHILWRIWKHLUHQWUHSUHQHXULDOHFRV\VWHPV
,7&KDVVXEVWDQWLDOO\LQFUHDVHGLWVVXSSRUWWRHQWUHSUHQHXUVDQGVPDOODQGPHGLXPVL]HGHQWHUSULVHVLQWKH
WHFKQRORJ\VHFWRUXSRQWKHUHTXHVWRIRXUSDUWQHUVDQGWKLVSXEOLFDWLRQSURYLGHVDGGLWLRQDOJXLGDQFHIRU
ZKHUHZHFDQPDNHDGLIIHUHQFH
$UDQFKD*RQ]iOH]
([HFXWLYH'LUHFWRU
,QWHUQDWLRQDO7UDGH&HQWUH
LLL
7HFKKXEVLQ$IULFD
$FNQRZOHGJHPHQWV
7KLVUHSRUWZDVSUHSDUHGE\DWHDPOHGE\0DUWLQ/DEEpXQGHUWKHJHQHUDOVXSHUYLVLRQRI5REHUW6NLGPRUH
0DUWLQ/DEEpFRRUGLQDWHGWKHUHSRUWZLWKWKHVXSSRUWRI&KXQ+HL/L7D\R$NLQ\HPL,7&FRQVXOWDQWZURWH
WKHH[HFXWLYHVXPPDU\DQG&KDSWHUVDQG1LQRQ'XYDOGLUHFWRURIWKH%RQG¶LQQRYLQFXEDWRUDQG
&KULVWLDQ-HNLQQRX$IULF¶LQQRYH[HFXWLYHPDQDJHUZURWH&KDSWHUDQG%HDWH:HLQ]LQJHUJURZWKOHDGRI
WKH,PSDFW+XE1HWZRUNZURWH&KDSWHU
1DWDOLH'RPHLVHQDQG(YHO\Q6HOWLHU,7&RYHUVDZTXDOLW\DQGSURGXFWLRQPDQDJHPHQW-HQQLIHU)UHHGPDQ
HGLWHGWKHGRFXPHQW
6SHFLDO WKDQNV WR WKH KXE OHDGHUV H[SHUWV DQG DFDGHPLFLDQV ZKR VKDUHG WKHLU SUDFWLFDO LQVLJKWV DQG
H[SHUWLVH IRU WKH UHSRUW -HUHP\ GH %HHU $QQD (NHOHGR ,DQ /RUHQ]HQ (OHDQRU 0DUFKDQW 6LPXQ]D
0X\DQJDQD.HOHFKL2IRHJEX7LP:HLVVDQG6RKDLE$UVKDG
6HUJH$GHDJERSURYLGHGJUDSKLFDQGGLJLWDOSULQWLQJVXSSRUW
LY
7HFKKXEVLQ$IULFD
&RQWHQWV
)RUHZRUG LLL
$FNQRZOHGJHPHQWV LY
$FURQ\PV YLL
([HFXWLYHVXPPDU\ YLLL
&+$37(5 81'(567$1',1*7+((&26<67(0
+XEVDQGHQWUHSUHQHXULDOHFRV\VWHPV
'LDJQRVLQJHQWUHSUHQHXULDOHFRV\VWHPV
)L[LQJUHVRXUFHFRQVWUDLQWV
&+$37(5 &$7$/<6,1*7(&+(175(35(1(856+,3
7KHNQRZOHGJHHFRQRP\
7KHMREFUHDWLRQLPSHUDWLYH
+LJKJURZWKWHFKVWDUWXSV
&DWDO\VLQJWHFKVWDUWXSV
7KHULVHRIWHFKKXEV
:KDWGRWHFKKXEVGR"
+RZGRKXEVFUHDWHYDOXH"
&RPPRQFKDOOHQJHVIRUKXEV
$FRPSUHKHQVLYHIUDPHZRUNIRUGHILQLQJKXEVXFFHVV
&$6(678'<:KHQKXEVIDLO±WKH+\SHUFXEHVWRU\
,QWHUYLHZ,QQRYDWLRQ9LOODJH&DSLWDODQGH[SHUWLVHIRU8JDQGDQVWDUWXSV
&+$37(5%86,1(6602'(/6:(67$)5,&$17(&++8%6
:KDWLVDWHFKKXEEXVLQHVVPRGHO"
&UHDWH'HVLJQLQJWKHYDOXHSURSRVLWLRQIRUDWHFKKXE
'HOLYHU*HWWLQJWKHPHVVDJHDFURVV
&DSWXUH6HFXULQJIXQGLQJ
%XVLQHVVPRGHOSDWWHUQV
+XEQHWZRUNVSOD\DYLWDOUROH
7LSVIRUKXEVDQGVXSSRUWLQJRUJDQL]DWLRQV
&+$37(5,03$&7+8%/2&$//<5227('*/2%$//<&211(&7('
7KH,PSDFW+XEEXVLQHVVPRGHOLQ$IULFD
$IULFDQ,PSDFW+XEVLQDFWLRQ
7DNLQJFROODERUDWLYHDFWLRQIRUDEHWWHUZRUOG
Y
7HFKKXEVLQ$IULFD
&+$37(5),1$1&,$/6867$,1$%,/,7<7+(&+$//(1*(
+XEVVHHNWRGHOLYHUVRFLDOLPSDFW
)XQGLQJVRXUFHVDQGUHYHQXHVWUHDPV
$UFKHW\SHEXVLQHVVPRGHOV
$QHWZRUNEDVHGDSSURDFKWRILQDQFLDOVXVWDLQDELOLW\
)LQDQFLDOVXVWDLQDELOLW\DVDPXOWLGLPHQVLRQDOFRQFHSW
6HHLQJILQDQFLDOVXVWDLQDELOLW\LQWHUPVRIDOLJQPHQW
,QWHUYLHZ&RQFUHH7RROVIRUYLDEOHVWDUWXSV
$11(;(6
$QQH[, 3DLQSRLQWVRIKXEEXVLQHVVPRGHOV
$QQH[,, &DQYDVRIEXVLQHVVPRGHOSDWWHUQV
5()(5(1&(6
%R[HV7DEOHV)LJXUHV
%R[ (QWUHSUHQHXUVKLSDVGULYHURIHFRQRPLFGHYHORSPHQW
%R[ &UHDWLQJDFXOWXUHRIHQWUHSUHQHXUVKLS
%R[ +RZKXEVFXOWLYDWHVNLOOVWKURXJKIRFXVHGQHWZRUNLQJ
%R[ /DXQFKLQJDKXEDVDPLQLPXPYLDEOHSURGXFW
%R[ 3URGXFWVDQGVHUYLFHV$OLJQLQJSURMHFWVZLWKJRDOV
%R[ %HVWSUDFWLFHVIRUHQJDJLQJWKHSULYDWHVHFWRU
%R[ 0DQDJLQJFDVKIORZZKHQDEXVLQHVVPRGHOLQFOXGHVUHYHQXHVKDULQJ
%R[ +RZDFURVVVXEVLG\PRGHODIIHFWVDKXE¶VILQDQFLDOVXVWDLQDELOLW\
7DEOH .H\SLOODUVRIDQHQWUHSUHQHXULDOHFRV\VWHP
7DEOH 7\SLFDOKXEVHUYLFHV
7DEOH 7HFKKXEVWKDWZHUHLQWHUYLHZHG
7DEOH *UDQWSURYLGHUVDQGXVHV
7DEOH 3URVDQGFRQVRIHDFKUHYHQXHPRGHO
7DEOH )LQDQFLDOVWDELOLW\RIKXEV
7DEOH +XEUHYHQXHVWUHDPV
7DEOH +XEPRGHOVDQGUHYHQXHVWUHDPV
)LJXUH %UHDNGRZQRIUHYHQXHVWUHDPV
)LJXUH 7KHJUDQWHHEXVLQHVVPRGHO
)LJXUH 7KHQHWZRUNHUEXVLQHVVPRGHO
)LJXUH 7KHFRQVXOWDQW
)LJXUH 7KHDJHQW
)LJXUH 3HUFHQWDJHRIILQDQFLDOO\VXVWDLQDEOHKXEVYLVjYLVEXVLQHVVPRGHOSDWWHUQV
)LJXUH $FRPPXQLW\RIFKDQJHPDNHUVLQ$IULFDDQGWKH0LGGOH(DVW
YL
7HFKKXEVLQ$IULFD
$FURQ\PV
8QOHVVRWKHUZLVHVSHFLILHGDOOUHIHUHQFHVWRGROODUVDUHWR8QLWHG6WDWHVGROODUVDQGDOOUHIHUHQFHVWR
WRQVDUHWRPHWULFWRQV
$I'% $IULFDQ'HYHORSPHQW%DQN
$1'( $VSHQ1HWZRUNRI'HYHORSPHQW(QWUHSUHQHXUV
*(0 *OREDO(QWUHSUHQHXUVKLS0RQLWRU
,&7 ,QIRUPDWLRQDQGFRPPXQLFDWLRQVWHFKQRORJ\
,7& ,QWHUQDWLRQDO7UDGH&HQWUH
1*2 1RQJRYHUQPHQWDORUJDQL]DWLRQ
60( 6PDOODQGPHGLXPVL]HGHQWHUSULVH
9&$ 9HQWXUH&DSLWDOIRU$IULFD
:() :RUOG(FRQRPLF)RUXP
YLL
7HFKKXEVLQ$IULFD
([HFXWLYHVXPPDU\
(QWUHSUHQHXUVKLSSDUWLFXODUO\WHFKHQDEOHGKLJKJURZWKHQWUHSUHQHXUVKLSLVRIWHQFLWHGDVDNH\WR$IULFDQ
HFRQRPLFJURZWKDQGGHYHORSPHQW&RQVHTXHQWO\WKRVHZLWKDVWDNHLQWKHIXWXUHRI$IULFD±LWVFLWL]HQV
JRYHUQPHQWVFLYLOVRFLHW\DQGWKHSULYDWHVHFWRU±VHHNWRSURPRWHDQGHQFRXUDJHHQWUHSUHQHXUVKLSDVD
FDWDO\VWIRUHFRQRPLFSURVSHULW\DQGZHOOEHLQJ
$OWKRXJK WKHUH DUH PDQ\ ZD\V WR MXGJH WKH YDOXH RI HQWUHSUHQHXUVKLS SDUWLFLSDWLRQ LQ WKH NQRZOHGJH
HFRQRP\MREFUHDWLRQDQGWKHLPSDFWRIKLJKJURZWKILUPVDUHFHQWUDOHOHPHQWV$QXQGHUVWDQGLQJRIZKLFK
LQWHUYHQWLRQVFDQPHDQLQJIXOO\XQGHUSLQHQWUHSUHQHXUVKLSDFWLYLW\LQ$IULFDLVDOVRLPSRUWDQW
7HFK KXEV DUH GHVLJQHG WR VXSSRUW VWDUWXSV DQG KHOS WKHP WKULYH DV ZHOO DV EXLOG HQWUHSUHQHXULDO WHFK
FRPPXQLWLHV$OWKRXJKKXEVFDQYDU\ZLGHO\LQWHUPVRIVWUXFWXUHDQGVHUYLFHVWKH\DUHJHQHUDOO\YLHZHG
DVSODFHVZKHUHWHFKDQGHQWUHSUHQHXUVKLSFRPPXQLW\PHPEHUVDVVHPEOH
$WLWVFRUHDWHFKKXELVDVSDFHZKHUHWHFKQRORJ\HQWKXVLDVWVLQQRYDWRUVDQGHQWUHSUHQHXUVJDWKHUWR
VKDUHLGHDVDQGEXLOG)RUWKHSXUSRVHVRIWKLVGLVFXVVLRQKXEVDUHGHILQHGDVµRUJDQL]DWLRQVWKDWVXSSRUW
HDUO\VWDJHWHFKQRORJ\LQQRYDWRUVE\DOORZLQJWKHPWRHVWDEOLVKOLQNVWRRWKHUPHPEHUVRIWKHLQQRYDWLRQ
HFRV\VWHP ZLWK WKH JRDO WR LPSURYH WKHLU EXVLQHVV SHUIRUPDQFH DQG WKHUHE\ WKH HFRV\VWHP¶V RXWSXW RI
LQQRYDWLRQV¶
7HFKKXEVKDYHWZRSULPDU\SXUSRVHVWREXLOGEXVLQHVVHVDQGWRFUHDWHFRPPXQLW\6HYHUDOFKDUDFWHULVWLFV
VSDQ ERWK UROHV VXFK DV EXLOGLQJ FRPPXQLW\ ZHOFRPLQJ GLYHUVLW\ IRVWHULQJ FROODERUDWLRQ DQG FDWDO\VLQJ
LQQRYDWLRQ
+RZHYHU KXEV DUH IOH[LEOH LQVWLWXWLRQV WKDW RIWHQ KDYH GLIIHUHQW SXUSRVHV DQG IXQFWLRQV 7KH\ VKRXOG
WKHUHIRUHEHVHHQDVK\EULGRUJDQL]DWLRQVWKDWEXLOGUHODWLRQVKLSVDQGQHWZRUNVERRVWFDSDELOLWLHVDQGVHUYH
DVLQWHUPHGLDULHV
About ecosystems
+XEVRSHUDWHLQHFRV\VWHPVZKLFKDUHW\SLFDOO\GHILQHGE\QLQHNH\SLOODUVPDUNHWVKXPDQFDSLWDOIXQGLQJ
VXSSRUWV\VWHPVLQIUDVWUXFWXUHFXOWXUHJRYHUQPHQWSROLF\DQGUHJXODWRU\IUDPHZRUNDQGHGXFDWLRQ
7KHFRQGLWLRQRIWKHHFRV\VWHPPDWWHUVWRERWKWHFKKXEVDQGVWDUWXSV)RUVWDUWXSVHFRV\VWHPTXDOLW\
FDQ GHWHUPLQH KRZ ZHOO D ILUP PDQDJHV LWV UHODWLRQVKLSV ZLWK FXVWRPHUV DQG VXSSOLHUV DQG DIIHFWV LWV
SURVSHFWVIRUH[SDQVLRQ3HUKDSVPRUHIXQGDPHQWDOO\DVWDUWXSGUDZVNH\UHVRXUFHVDQGVXSSRUWIURP
LQVWLWXWLRQVDQGDFWRUVZLWKLQLWVHFRV\VWHP
7KHVDPHLVWUXHIRUWHFKKXEV+XEVDQGWKHSURMHFWVWKH\VXSSRUWDUHPRUHOLNHO\WRWKULYHLQZHOOIXQFWLRQLQJ
HFRV\VWHPV7KLVPHDQVKXEVPXVWXQGHUVWDQGWKHG\QDPLFV±VWUHQJWKVZHDNQHVVHVDQGRSSRUWXQLWLHV±
RIWKHLUHFRV\VWHP7KLVLVHVSHFLDOO\FULWLFDOJLYHQWKDWKXEVIUHTXHQWO\PXVWDGGUHVVHFRV\VWHPQHHGVDQG
WDFNOHZHDNQHVVHVWRDFKLHYHWKHLUPLVVLRQV
)ULHGHULFL1Fµ0RUH$UWWKDQ6FLHQFH"([SORULQJWKH5ROHVRI7HFKQRORJ\,QQRYDWLRQ+XEVIRU8UEDQ5HJLRQVLQ'HYHORSLQJ&RXQWULHV¶,QEU-SPRI Forum, Early Career Research Conference 2014,
‘Ingenio PhD Days’SKWWSVGRLRUJVVUQ
YLLL
7HFKKXEVLQ$IULFD
7KH VWUXFWXUDO JDSV FRPPRQO\ IRXQG LQ LPPDWXUH HFRV\VWHPV FDQ EH FORVHG E\ FUHDWLQJ QDWLRQZLGH
LQIRUPDWLRQ DQG FRPPXQLFDWLRQV WHFKQRORJ\ ,&7 LQIUDVWUXFWXUH 7KLV PDNHV LWHDVLHU WRSURYLGH WHOHFRP
SURGXFWVDQGVHUYLFHVVWLPXODWLQJWKHHPHUJHQFHRIDQHQWUHSUHQHXUVKLSHFRV\VWHPDQGHQFRXUDJLQJWKH
GHYHORSPHQWRIWKHILUVWJHQHUDWLRQRIVWDUWXSVWDQGRXWV
+XEVVHHNWRVXSSRUWWKHJURZWKDQGGHYHORSPHQWRIEXVLQHVVHV+RZHYHUWKH\DOVRDLPWREHQHILWWKHLU
FRPPXQLWLHVDQGWKHZLGHUZRUOGHYHQDVWKH\VHHNWREXLOGILQDQFLDOO\VXVWDLQDEOHLQVWLWXWLRQVDQGDVVLVW
SURILWDEOH VWDUWXSV 0XFK RI WKH LPSDFW DWWULEXWHG WR KXEV VWHPV IURP WKHLU DELOLW\ WR KHOS HQWUHSUHQHXUV
FUHDWHFRPPXQLW\UDWKHUWKDQLQIOXHQFHWKHRXWFRPHVRIVSHFLILFVWDUWXSV1HYHUWKHOHVVHYLGHQFHVXJJHVWV
WKDWDFFHOHUDWLRQVXSSRUWFDQKHOSVWDUWXSVUDLVHODUJHUDPRXQWVRIIXQGLQJ
+XEVDOVRFRQWULEXWHWRHFRQRPLFGHYHORSPHQWWKURXJKMREFUHDWLRQ
$OWKRXJKKXEVVHHNILQDQFLDOVXVWDLQDELOLW\WKLVWRSLFKDVEHHQSRRUO\H[SORUHG2QO\RQHUHSRUWE\LQIR'HY
FRYHUVILQDQFLDOVXVWDLQDELOLW\LQDQ\GHSWK
7KHDYDLODEOHOLWHUDWXUHGRHVUHYHDOVRPHXVHIXOLQVLJKWVKRZHYHULQFOXGLQJWKHW\SHRIIXQGLQJWRH[SHFW
IURPWKHSULYDWHVHFWRUDQGJRYHUQPHQWWKHEHQHILWVRIGLYHUVLI\LQJLQFRPHVWUHDPVDQGWKHLPSRUWDQFHRI
VHHNLQJORQJWHUPVXSSRUWWKDWFRYHUVFRUHFRVWV7KHPRVWXVHIXOLQVLJKWPLJKWEHKRZDOLJQPHQWDIIHFWV
ILQDQFLDOVXVWDLQDELOLW\
)RUH[DPSOHWKHGHJUHHWRZKLFKWKHRYHUDUFKLQJJRDOVRIDKXEVXLWLWVRUJDQL]DWLRQDOVWUXFWXUHEXVLQHVV
PRGHODQGHFRV\VWHPDIIHFWVILQDQFLDOVXVWDLQDELOLW\7KLVLVZK\ILQDQFLDOVXVWDLQDELOLW\VKRXOGEHFRQVLGHUHG
DPXOWLGLPHQVLRQDOFRQFHSWLQZKLFKWKHFRPSRQHQWVWKDWDUHFHQWUDOWRWKHKXEFRUHSXUSRVHVWUXFWXUH
EXVLQHVVPRGHODFWLYLWLHVHWFVKRXOGDOLJQZLWKWKHQHHGVDQGFDSDFLW\RIWKHHFRV\VWHP
,WLVDOVRFULWLFDOWRH[SORUHKRZWHFKKXEEXVLQHVVPRGHOVDUHFRPSRVHGZKDWUHYHQXHVWUHDPVDUHDWWUDFWLYH
DQGZKDWVWUDWHJLHVFDQEHXVHGWRDFKLHYHILQDQFLDOVXVWDLQDELOLW\
L[
7HFKKXEVLQ$IULFD
&+$37(581'(567$1',1*7+((&26<67(0
+XEVDQGHQWUHSUHQHXULDOHFRV\VWHPV
(QWUHSUHQHXUVKLSLVDFDWDO\VWIRUHFRQRPLFJURZWKLQQRYDWLRQMREFUHDWLRQDQGGHVLUDEOHVRFLRHFRQRPLF
RXWFRPHV7HFKQRORJ\HQDEOHGVWDUWXSVDUHDSDUWLFXODUO\SRWHQWFRQGXLWRIWKHVHHIIHFWV
%R[ (QWUHSUHQHXUVKLSDVGULYHURIHFRQRPLFGHYHORSPHQW
µ(QWUHSUHQHXUVDUHNH\GULYHUVRIHFRQRPLFDQGVRFLDOSURJUHVV5DSLGO\JURZLQJHQWUHSUHQHXULDOHQWHUSULVHVDUH
RIWHQYLHZHGDVLPSRUWDQWVRXUFHVRILQQRYDWLRQSURGXFWLYLW\JURZWKDQGHPSOR\PHQWVPDOODQGPHGLXPVL]HG
HQWHUSULVHVDFFRXQWIRUDKLJKSHUFHQWDJHRIDOOMREVLQHPHUJLQJHFRQRPLHV0DQ\JRYHUQPHQWVDUHWKHUHIRUH
WU\LQJWRDFWLYHO\SURPRWHHQWUHSUHQHXUVKLSWKURXJKYDULRXVIRUPVRIVXSSRUW¶
+LVWRULFDOO\HQWUHSUHQHXUVKLSKDVEHHQH[DPLQHGIURPWKHSHUVSHFWLYHRIDQLQGLYLGXDOHQWUHSUHQHXU0RUH
UHFHQWO\WKHHQYLURQPHQWRUHFRV\VWHPLQZKLFKDQHQWUHSUHQHXURSHUDWHVKDVEHHQHPSKDVL]HG$VD
UHVXOWµHQWUHSUHQHXULDOHFRV\VWHP¶KDVEHFRPHDFRPPRQSODFHWHUPLQPDQDJHPHQWVFLHQFHDQGEXVLQHVV
OLWHUDWXUH7KLVWHUPKHOSVGHILQHWKHHQYLURQPHQWLQZKLFKVWDUWXSVRSHUDWHDQGEDODQFHVWKHIRFXVEHWZHHQ
LQGLYLGXDOVDQGV\VWHPV$QHQWUHSUHQHXULDOHFRV\VWHPLVµDV\VWHPRILQWHUUHODWHGSLOODUVWKDWLPSDFWWKH
VSHHGDQGDELOLW\ZLWKZKLFKHQWUHSUHQHXUVFDQFUHDWHDQGVFDOHQHZYHQWXUHVLQDVXVWDLQDEOHZD\¶
(DFKHFRV\VWHPLVGLIIHUHQWEXWPRVWFRQWDLQVHYHUDOW\SLFDOFDWHJRULHVRIDFWRUV)RUH[DPSOHWKH$VSHQ
1HWZRUNRI'HYHORSPHQW(QWUHSUHQHXUV¶$1'(HFRV\VWHPPDSVLQ$IULFDWHQGWRIHDWXUHPDQ\LPSRUWDQW
DFWRUV VXFK DV DFDGHPLF LQVWLWXWLRQV EDQNV RU ILQDQFLDO LQVWLWXWLRQV FDSDFLW\ GHYHORSPHQW SURYLGHUV
FRUSRUDWLRQV RU FRUSRUDWH IRXQGDWLRQV GHYHORSPHQW ILQDQFH LQVWLWXWLRQV RU GRQRU DJHQFLHV IRXQGDWLRQV
JRYHUQPHQW DJHQFLHV LQYHVWRUV UHVHDUFK DQG DGYLVRU\ SURYLGHUV PHGLD VHFWRU DVVRFLDWLRQV DQG
PLFURILQDQFHLQVWLWXWLRQV$VLQJOHFRXQWU\PD\KDYHPXOWLSOHHFRV\VWHPVZLWKPRUHDFWLYLW\LQFLWLHVWKDQ
LQUXUDODUHDVRUERXQGDULHVWKDWH[WHQGDFURVVERUGHUV
(FRV\VWHPVDUHUHOHYDQWWRKXELPSDFW)LUVWWHFKKXEVDUHRIWHQWDVNHGZLWKILOOLQJHFRV\VWHPJDSVVR
XQGHUVWDQGLQJWKHVWUHQJWKVZHDNQHVVHVDQGQHHGVRIWKHHFRV\VWHPZLOOKHOSKXEVGHWHUPLQHZKHUHDQG
KRZWRLQWHUYHQH6HFRQGO\HFRV\VWHPVDUHRULHQWHGDURXQGDSXUSRVH
,Q .HQ\D IRU H[DPSOH WKH ,&7 HFRV\VWHP LV DVVRFLDWHG ZLWK EXLOGLQJ VWDUWXSV HFRQRPLF JURZWK DQG
JHQHUDWLQJVRFLDOLPSDFW,Q1DLURELZKHUHPXFKRI.HQ\D¶VWHFKVWDUWXSDFWLYLW\LVFHQWUHGWKHUHDUHWZR
VHSDUDWHEXWUHODWHGFRPPXQLWLHV2QHLVFRPSRVHGRIVRFLDOHQWHUSULVHVDQGWDUJHWVVRFLDOLPSDFWWKH
RWKHUIRFXVHVRQ,&7DQGWHFKVWDUWXSV
:RUOG(FRQRPLF)RUXPEntrepreneurial Ecosystems Around the Globe and Early-Stage Company Growth Dynamics.*HQHYDS5HWULHYHGIURPKWWSUHSRUWVZHIRUXPRUJHQWUHSUHQHXULDOHFRV\VWHPV
DURXQGWKHJOREHDQGHDUO\VWDJHFRPSDQ\JURZWKG\QDPLFVZSFRQWHQWEORJVGLUPSILOHVSDJHVILOHVQPHHQWUHSUHQHXUVKLSUHSRUWMDQSGI
:()op. cit
$VSHQ1HWZRUNRI'HYHORSPHQW(QWUHSUHQHXUV5HWULHYHGIURPKWWSVHFRV\VWHPVDQGHJOREDORUJVQDSVKRWV
3DUNHWDOop. cit±
3DUNHWDOop cit
7HFKKXEVLQ$IULFD
,QVXFKDVFHQDULRHFRV\VWHPPDSSLQJKHOSVDKXEGHFLGHZKHWKHUWRIRFXVRQHFRV\VWHPEXLOGLQJRUVWDUW
XSFUHDWLRQRUSHUKDSVWRSXUVXHPXOWLSOHSXUSRVHV)LQDOO\KXEVDQGVWDUWXSVDUHPRUHOLNHO\WRWKULYH
LQ HFRV\VWHPV WKDW IXQFWLRQ ZHOO DQG FRQWDLQ WKH HVVHQWLDO UHVRXUFHV )RU H[DPSOH VRFLDO WHFKQRORJ\
SURMHFWVWKDWHPHUJHIURPWHFKKXEVDUHPRUHOLNHO\WRVXFFHHGZKHQWKHHFRV\VWHPVLQZKLFKWKH\IXQFWLRQ
DUHKHDOWK\7KRVHWKDWDUHFUHDWHGZLWKLQG\VIXQFWLRQDOHFRV\VWHPVDUHPRUHOLNHO\WRIDLO
6LPLODUO\LQWKHFDVHRILQIR'HY¶VQHWZRUNRIKXEVµP/DEVZRXOGRQO\EHLPSOHPHQWHGLIWKHORFDOLQQRYDWLRQ
HFRV\VWHPKDGDOUHDG\UHDFKHGDFHUWDLQGHJUHHRIPDWXULW\:KHQFULWLFDOLQSXWVVXFKDVHQWUHSUHQHXULDO
DQG WHFKQLFDO WDOHQW HDUO\VWDJH LQYHVWRUV DQG VWURQJ SDUWQHUV ZLWK VXSSRUW UHVRXUFHV DUH XQDYDLODEOH
P/DEVFDQKDUGO\UHDOL]HWKHLUIXOOSRWHQWLDO¶
(QWUHSUHQHXULDO HFRV\VWHPV DUH DOVR H[WUHPHO\ LPSRUWDQW WR VWDUWXSV <RXQJ FRPSDQLHV ZLOO VWUXJJOH WR
QDYLJDWHWKHFKDQJLQJODQGVFDSHFUHDWHGE\QHZSODWIRUPWHFKQRORJLHVVXFKDVEXVLQHVVWREXVLQHVVDQG
EXVLQHVVWRFRQVXPHUHFRPPHUFHVLWHV+RZHYHUWKHTXDOLW\RIWKHHFRV\VWHPVWKHVHVWDUWXSVRFFXS\
ZLOOXOWLPDWHO\GHWHUPLQHKRZZHOOWKH\FRSHZLWKQHZWHFKQRORJ\DQGUHQHJRWLDWHUHODWLRQVKLSVZLWKWKHLU
FXVWRPHUVSDUWQHUVDQGVXSSOLHUVDVZHOODVKRZZHOOWKH\QDYLJDWHWKHFKDOOHQJHRIH[SDQGLQJLQWRQHZ
PDUNHWV
%R[ &UHDWLQJDFXOWXUHRIHQWUHSUHQHXUVKLS
$OWKRXJKHQWUHSUHQHXUVKLSLVEHFRPLQJPRUHDWWUDFWLYHDVDSURIHVVLRQDOSDWKSHRSOHVWLOOIDYRXUPRUHWUDGLWLRQDO
UROHVLQEXVLQHVVDQGJRYHUQPHQW7KLVPHDQVWKDWUDLVLQJWKHSURILOHRIHQWUHSUHQHXUVKLSDVDUHVSHFWHGDQGYLDEOH
RSWLRQLVVWLOODQLPSRUWDQWSDUWRIHFRV\VWHPEXLOGLQJ'XHWRWKHLUKLJKOHYHORIHQJDJHPHQWLQFRPPXQLW\EXLOGLQJ
WHFKKXEVKDYHDVLJQLILFDQWUROHWRSOD\LQFUHDWLQJDSRVLWLYHHQWUHSUHQHXULDOQDUUDWLYH+XEVHQJDJHGLQDZDUHQHVV
UDLVLQJVXJJHVWWKHIROORZLQJEHVWSUDFWLFHV
&UHDWHVWUXFWXUHGSURJUDPPHVZLWKFHUWLILFDWLRQWKDWUHFRJQL]HVWKHDFFRPSOLVKPHQWVRISDUWLFLSDWLQJVWDUW
XSV0DQ\FRXQWULHVVXFKDV6HQHJDOHPEUDFHDQGYDOXHGHFODUDWLRQVRIDFKLHYHPHQWVXFKDVFHUWLILFDWLRQVDQG
GLSORPDV
+HOSVWDUWXSVVWD\DIORDWDVWKH\GHYHORS7KHOLPLWHGDYDLODELOLW\RIHDUO\VWDJHFDSLWDOLQPDQ\PDUNHWVPHDQV
VWDUWXSVRIWHQQHHGWRWDNHRQFRQVXOWDQF\SURMHFWV+XEVVXFKDVP/DE6RXWK$IULFDKDYHVRXUFHGSURMHFWVDQG
KLUHGRUFROODERUDWHGZLWKGHYHORSHUVDQGVWDUWXSVZLWKLQWKHLUFRPPXQLW\WRGHOLYHUWKHP
6KDUHVXFFHVVVWRULHV+XEVVKRXOGKLJKOLJKWWKHVXFFHVVRIVWDUWXSVZLWKLQWKHLUFRPPXQLWLHVWRLQVSLUHWKHQH[W
JHQHUDWLRQRIDVSLULQJHQWUHSUHQHXUV7KLVWDVNPD\EHFKDOOHQJLQJGXHWRWKHOLPLWHGUHVRXUFHVRIPDQ\KXEWHDPV
VWRU\WHOOLQJPD\IDOOWRWKHERWWRPRIWKHSULRULW\OLVW$GGLWLRQDOO\WKHUHPD\EHFXOWXUDOEDUULHUVWRVKDULQJVXFFHVV
VWRULHV:LWKLQWKH.HQ\DQHFRV\VWHPIRUH[DPSOHVWDUWXSVWKDWKDGDFKLHYHGVXFFHVVIXOH[LWVZHUHUHOXFWDQWWR
VKDUHLQIRUPDWLRQDERXWWKHLU GHDOV6LPLODUO\PDQ\DQJHOLQYHVWRUVLQ=DPELDSUHIHUUHGWRUHPDLQDQRQ\PRXVWR
DYRLGEHLQJWDUJHWHGIRUWKHLUZHDOWK
Source:7UHLVPDQ/µ&DSWXULQJ/HDUQLQJIURP7HFK,QQRYDWLRQ+XEVDFURVV$IULFD¶S
'LDJQRVLQJHQWUHSUHQHXULDOHFRV\VWHPV
$1'( DQG WKH :RUOG (FRQRPLF )RUXP :() VD\ HQWUHSUHQHXULDO HFRV\VWHPV DUH EDVHG RQ HLJKW PDLQ
SLOODUVZKLFKDUHGHVFULEHGEHORZ(FRV\VWHPSLOODUVDUHQRWRQO\LQWHUUHODWHGEXWWKH\DIIHFWHDFKDQRWKHU
7KHSLOODUDVVRFLDWHGZLWKJRYHUQPHQWSROLF\DQGUHJXODWRU\IUDPHZRUNVPD\VWURQJO\LQIOXHQFHWKHRWKHUV
,QIR'HYµ7KH%XVLQHVV0RGHOVRIP/DEVDQGP+XEV±$Q(YDOXDWLRQRILQIR'HY¶V0RELOH,QQRYDWLRQ6XSSRUW3LORWV¶S
Ibid.:
&VtNV]HQWPLKiO\LHWDOop.cit
LQIR'HYop. cit
,QWHUQDWLRQDO7UDGH&HQWUHSME Competitiveness Outlook 2018: Business Ecosystems for the Digital Age*HQHYDS
Ibid±DQG:()op.cit
7HFKKXEVLQ$IULFD
x 0DUNHWV7KLVSLOODUSHUWDLQVWRWKHDYDLODELOLW\RIPDUNHWVWKDWDUHFRQGXFLYHWRVWDUWXSVXFFHVVLHWKH
SUHVHQFHRIµHDUO\DGRSWHU¶FXVWRPHUVZKRDUHZLOOLQJWREX\DQGXVHQHZSURGXFWV&OHDUO\FRPSDQLHV
QHHGDFFHVVLEOHPDUNHWVZLWKSD\LQJFXVWRPHUVDQGDGYDQWDJHRXVEXVLQHVVHQYLURQPHQWV+RZHYHU
H[HFXWLQJDVXFFHVVIXOEXVLQHVVWRFRQVXPHUPRGHOLQ$IULFDLVGLIILFXOWEHFDXVHWKHUHDUHVRPDQ\ORZ
LQFRPH FRQVXPHUV DQG IHZ HDUO\ DGRSWHUV (QWUHSUHQHXUV DOVR VWUXJJOH WR SHQHWUDWH PDUNHWV HYHQ
WKRXJKWKH\FDQXVHWKHLUQHWZRUNVWRLGHQWLI\RSSRUWXQLWLHV
x +XPDQFDSLWDOUHIHUVWRWKHVXSSO\RITXDOLILHGSHUVRQQHOHVSHFLDOO\VHULDOHQWUHSUHQHXUV0DQDJHULDO
WHFKQLFDODQGOHDGHUVKLSVNLOOVDUHQHHGHGWRUXQVWDUWXSVDQGHGXFDWLRQDOLQVWLWXWLRQVDUHH[SHFWHGWR
SURGXFH ZHOOWUDLQHG JUDGXDWHV ,GHDOO\ VWDUWXSV ZRXOG EHQHILW IURP D ZHOOHGXFDWHG ZRUNIRUFH IURP
ZKLFK WKH\ FRXOG KLUH KLJKTXDOLW\ HPSOR\HHV %XW WKH VFDUFLW\ RI KXPDQ FDSLWDO LQ $IULFD UHPDLQV D
VHULRXVSUREOHPWKDWVWHPVSDUWO\IURPWKHVKRUWDJHRIHGXFDWLRQDOLQVWLWXWLRQVDQGWKHODFNRIIRFXVRQ
HQWUHSUHQHXULDOPDQDJHPHQWWHFKQLFDODQGYRFDWLRQDOWUDLQLQJ7KHDEVHQFHRINQRZOHGJHLQWHQVLYH
LQGXVWU\ZKHUHHPSOR\HHVFDQOHDUQYDOXDEOHVNLOOVRQWKHMRELVDOVRFLWHGDVDVRXUFHRIWKHSUREOHP
0RVWSHRSOHZLWKWKHQHFHVVDU\VNLOOVKDYHPRUHOXFUDWLYHVWDEOHHPSOR\PHQWRSWLRQVDWFRUSRUDWLRQV
$VVWDUWXSIRXQGHUVHQWHU$IULFDQPDUNHWVIURPPRUHGHYHORSHGHFRV\VWHPVKRZHYHUWKH\EULQJWKHLU
H[SHULHQFH VNLOOV DQG DFFHVV WR UHVRXUFHV VXFK DV QHWZRUNV PHQWRUVKLS DQG IXQGLQJ :KHQ WKHVH
SHRSOH VWDUW QHZ EXVLQHVVHV WKH\ WUDQVIHU WKHLU NQRZOHGJH DQG FRQQHFWLRQV WR WKRVH YHQWXUHV
x )XQGLQJUHIHUVWRILQDQFLDOFDSLWDOLQWKHIRUPRIDQJHOLQYHVWPHQWVHHGVWDJHFDSLWDOYHQWXUHFDSLWDO
SXEOLFPDUNHWVDQGGHEWILQDQFLQJWKDWHQDEOHVVWDUWXSVWRIXQFWLRQ(DUO\VWDJHFDSLWDOLVVFDUFHDFURVV
WKHFRQWLQHQWIURPDJOREDOSHUVSHFWLYHDQGORFDOYHQWXUHFDSLWDOPDUNHWVDUHLQWKHEHJLQQLQJVWDJHV
0DQ\$IULFDQVWDUWXSIRXQGHUVUHO\RQIXQGVIURPIDPLO\DQGIULHQGVWRODXQFKWKHLUHQWHUSULVHVDQGWKH\
WKHQ IDFH WKH µ9DOOH\ RI 'HDWK¶ ± WKH SRLQW DW ZKLFK WKLV IXQGLQJ LV H[KDXVWHG EXW WKH\ DUH QRW \HW
VXFFHVVIXO HQRXJK WR DWWUDFW HDUO\VWDJH LQVWLWXWLRQDO FDSLWDO $SSURSULDWH IXQGLQJ IURP ORFDO YHQWXUH
FDSLWDOLVWVDQJHOLQYHVWRUVDQGFURZGIXQGLQJUHPDLQVOLPLWHGEXWLVJURZLQJ
x 6XSSRUWV\VWHPVDUHWKHLQGLYLGXDOVDQGLQVWLWXWLRQVWKDWJXLGHDQGVXSSRUWVWDUWXSVVXFKDVPHQWRUV
LQFXEDWRUV DFFHOHUDWRUV SURIHVVLRQDO VHUYLFH SURYLGHUV DQG QHWZRUNV 6XSSRUW VWUXFWXUHV HQDEOH
IOHGJOLQJ IRXQGHUV WR YDOLGDWH WKHLU EXVLQHVV LGHDV OHDUQ YDOXDEOH VNLOOV DQG EH SDUW RI D FRPPXQLW\
IRFXVHG RQ WHFK HQWUHSUHQHXUVKLS $FWLYLWLHV VXFK DV HYHQWV ZRUNVKRSV DQG FRPSHWLWLRQV KHOS
HQWUHSUHQHXUVOHDUQDQGVWLPXODWHLQQRYDWLRQE\EULQJLQJSHRSOHWRJHWKHUDQGHQFRXUDJLQJH[FKDQJH
7KLV KHOSV IRUP FORVHNQLW FRPPXQLWLHV WKDW IRVWHU WUXVW DQG JRRG EXVLQHVV SUDFWLFHV ZKLFK PDNHV
HQWUHSUHQHXUVPRUHFRPIRUWDEOHDERXWGRLQJEXVLQHVVZLWKHDFKRWKHU)LQDOO\SULYDWHSXEOLFDFDGHPLF
DQGLQVWLWXWLRQDODFWRUVKDYHODXQFKHGDJURZLQJQXPEHURILQLWLDWLYHVWKDWKHOSRUJDQL]HHFRV\VWHPV
x ,QIUDVWUXFWXUH 7KLV SLOODU LQGLFDWHV WKH DYDLODELOLW\ RI EDVLF LQIUDVWUXFWXUH VXFK DV HOHFWULFLW\ LQWHUQHW
DFFHVVDQGWUDQVSRUWDWLRQ7KHKLJKFRVWDQGOLPLWHGRUXQUHOLDEOHDYDLODELOLW\RIEDVLFXWLOLWLHVVXFKDV
HOHFWULFLW\DQGLQWHUQHWFDQOLPLWWKHJURZWKDQGVFDODELOLW\RIEXVLQHVVHV
x &XOWXUHUHIOHFWVWKHHPEHGGHGQHVVRIHQWUHSUHQHXULDOFXOWXUHLHWKHGHJUHHWRZKLFKHQWUHSUHQHXUVKLS
LVVHHQDVDQDFFHSWDEOHSURIHVVLRQZLWKUHFRJQL]DEOHUROHPRGHOVDQGVXFFHVVVWRULHV&XOWXUHUHIOHFWV
VRFLHWDOQRUPVDVLWSHUWDLQVWREDVLFHQWUHSUHQHXUVKLSYDOXHVVXFKDVULVNWROHUDQFHH[SHULPHQWDWLRQ
DQGLQQRYDWLRQ,WDOVRLQFOXGHVDWWLWXGHVWRZDUGVHQWUHSUHQHXUVKLSDQGEXLOGLQJZHDOWK0DQ\$IULFDQ
FRXQWULHV KDYH KLJKO\ HQWUHSUHQHXULDO FXOWXUHV EXW HQWUHSUHQHXUVKLS LV RIWHQ FRQVLGHUHG D ORZOHYHO
SURIHVVLRQ7KHUHLVOLWWOHWUXVWLQLQVWLWXWLRQVDQGEXVLQHVVWUDQVDFWLRQVDQGIHDURIIDLOXUHFDXVHVSHRSOH
WR DYRLG ULVN /RZ WUXVW OHYHOV DQG ULVN DYHUVLRQ KLQGHU WKH FUHDWLRQ RI QHZ YHQWXUHV 7KH QHHG WR
ILQDQFLDOO\VXSSRUWH[WHQGHGIDPLO\PHPEHUVLVDQRWKHUPDMRUEDUULHUWRHQWUHSUHQHXUVKLSLQ$IULFD
+DQII(DQG&-HNLQQRXChallenges and opportunities of incubators in West Africa: A guide to understanding support structures for entrepreneurs in West AfricaS%UDPDQQ-%XLOGLQJ,&7
(QWUHSUHQHXUVKLS(FRV\VWHPVLQ5HVRXUFH6FDUFH&RQWH[WV/HDUQLQJVIURP.HQ\D¶V³6LOLFRQ6DYDQQDK´,Q%1GHPRDQG7:HLVV(GV'LJLWDO.HQ\D$Q(QWUHSUHQHXULDO5HYROXWLRQLQWKH0DNLQJ3DOJUDYH6S
3DOJUDYH0DFPLOODQS
:()op. cit+DQIIDQG-HNLQQRXibid%UDPDQQibid±
%UDPDQQibid±
Ibid±:()opcit+DQIIDQG-HNLQQRXopcit
+DQIIDQG-HNLQQRXibid
:()opcit+DQIIDQG-HNLQQRXibid%UDPDQQopcit
:()DQG+DQIIDQG-HNLQQRXibid
7HFKKXEVLQ$IULFD
x *RYHUQPHQW SROLF\ DQG UHJXODWRU\ IUDPHZRUN 7KLV LQGLFDWHV KRZ KRVSLWDEOH WKH RSHUDWLQJ
HQYLURQPHQWLVIURPDSROLF\DQGUHJXODWRU\VWDQGSRLQWZKLFKLQFOXGHVLQFHQWLYHVVXFKDVWD[EHQHILWV
DQG OHJLVODWLRQ WKDW DGGUHVVHV EDQNUXSWF\ DQG ODERXU ODZV :HDN UXOH RI ODZ LQDGHTXDWH FRQWUDFW
HQIRUFHPHQW FRUUXSWLRQ DQG DPELJXRXV JRYHUQPHQW DGPLQLVWUDWLYH SURFHVVHV KDYH GDPDJHG PDQ\
HQWUHSUHQHXULDOHFRV\VWHPV6RPHJRYHUQPHQWVKDYHEHJXQWRSULRULWL]HSULYDWHVHFWRUGHYHORSPHQW
7KH\KDYHWDNHQVWHSVWRLPSURYHWKHHFRV\VWHPVXFKDVFUHDWLQJRQHVWRSVKRSVWRVWUHDPOLQHWKH
SURFHVV WR FUHDWH YHQWXUHV DQG SULYDWL]LQJ SXEOLF DJHQFLHV IRFXVHG RQ VPDOO DQG PHGLXPVL]HG
HQWHUSULVHV60(V
x (GXFDWLRQ 8QLYHUVLWLHV DUH FHQWUDO HFRV\VWHP DFWRUV DQG VRXUFHV RI WHFKQLFDO DQG EXVLQHVV WDOHQW
+RZHYHUVXE6DKDUDQ$IULFDUHFHLYHVVRPHRIWKHORZHVWVFRUHVRQWKH*OREDO(QWUHSUHQHXUVKLS,QGH[
IRUVWDUWXSVNLOOV7KLVLVSUREDEO\EHFDXVHWKHTXDOLW\RIHGXFDWLRQDQGDFFHVVLQ$IULFDDUHOLPLWHG
<RXQJ SHRSOH LQ VXE6DKDUDQ $IULFD EHOLHYH LQDGHTXDWH VNLOO LV RQH RI WKH WRS EDUULHUV WR FUHDWLQJ D
YHQWXUH DFFRUGLQJ WR WKH *OREDO (QWUHSUHQHXUVKLS 0RQLWRU *(0 DQG WKH 3ULQFH¶V <RXWK %XVLQHVV
,QWHUQDWLRQDO
2IWKHHLJKWSLOODUVWKHILUVWWKUHH²PDUNHWVKXPDQFDSLWDODQGIXQGLQJ²DUHWKHPRVWLPSRUWDQWWRVWDUW
XSV,WLVREYLRXVWKDWFRPSDQLHVFDQQRWVXUYLYHZLWKRXWSD\LQJFXVWRPHUVFDSDEOHHPSOR\HHVDQGIXQGLQJ
WRFRYHUWKHFRVWRIJURZWKDQGGHYHORSPHQW
Ibid%UDPDQQopcit
:()ibid
Ibid
7HFKKXEVLQ$IULFD
7DEOH .H\SLOODUVRIDQHQWUHSUHQHXULDOHFRV\VWHP
0DUNHWV +XPDQFDSLWDO
x 'RPHVWLFPDUNHW x 0DQDJHPHQWWDOHQW
¾ /DUJHFRPSDQLHVDVFXVWRPHUV x 7HFKQLFDOWDOHQW
¾ 60(VDVFXVWRPHUV x (QWUHSUHQHXULDOFRPSDQ\H[SHULHQFH
¾ *RYHUQPHQWVDVFXVWRPHUV x 2XWVRXUFLQJDYDLODELOLW\
x )RUHLJQPDUNHW x $FFHVVWRLPPLJUDQWZRUNIRUFH
¾ /DUJHFRPSDQLHVDVFXVWRPHUV
¾ 60(VDVFXVWRPHUV
¾ *RYHUQPHQWVDVFXVWRPHUV
)XQGLQJDQGILQDQFH 6XSSRUWV\VWHP
x )ULHQGVDQGIDPLO\ x 0HQWRUVDGYLVHUV
x $QJHOLQYHVWRUV x 3URIHVVLRQDOVHUYLFHV
x 3ULYDWHHTXLW\ x ,QFXEDWRUVDFFHOHUDWRUV
x 9HQWXUHFDSLWDO x 1HWZRUNRIHQWUHSUHQHXULDOSHHUV
x $FFHVVWRFUHGLW
*RYHUQPHQWDQGUHJXODWRU\IUDPHZRUN (GXFDWLRQDQGWUDLQLQJ
x (DVHRIVWDUWLQJDEXVLQHVV x $YDLODEOHZRUNIRUFHZLWKSUHXQLYHUVLW\HGXFDWLRQ
x 7D[LQFHQWLYHV x $YDLODEOHZRUNIRUFHZLWKXQLYHUVLW\HGXFDWLRQ
x %XVLQHVVIULHQGO\OHJLVODWLRQSROLFLHV x (QWUHSUHQHXUVSHFLILFWUDLQLQJ
x $FFHVVWREDVLFLQIUDVWUXFWXUH
x $FFHVVWRWHOHFRPPXQLFDWLRQVEURDGEDQG
x $FFHVVWRWUDQVSRUW
(GXFDWLRQDOLQVWLWXWLRQV &XOWXUDOVXSSRUW
x 3URPRWLQJDFXOWXUHRIUHVSHFWIRU x 7ROHUDQFHRIULVNDQGIDLOXUH
HQWUHSUHQHXUVKLS x 3UHIHUHQFHIRUVHOIHPSOR\PHQW
x 3OD\LQJDFHQWUDOUROHLQLGHDIRUPDWLRQIRUQHZ x 6XFFHVVVWRULHVUROHPRGHOV
FRPSDQLHV x 5HVHDUFKFXOWXUH
x 3OD\LQJDNH\UROHLQSURYLGLQJJUDGXDWHVIRUQHZ x 3RVLWLYHLPDJHRIHQWUHSUHQHXUVKLS
FRPSDQLHV x &HOHEUDWLRQRILQQRYDWLRQ
)L[LQJUHVRXUFHFRQVWUDLQWV
:KDWFDQEHGRQHWRILOOWKHJDSVLQVWDUWXSHFRV\VWHPVDQGLQFUHDVHWKHOLNHOLKRRGRIVWDUWXSVXFFHVV"
0F.LQVH\FRQVXOWDQW-RKDQQHV%UDPDQQKDVSURSRVHGDIRXUVWHSPRGHOWKDWGHVFULEHVKRZFRXQWULHV
ZLWKOLPLWHGUHVRXUFHVVKRXOGGHYHORS,&7HFRV\VWHPV7KLVPRGHOLVGHVFULEHGEHORZ
x &UHDWHQDWLRQZLGH,&7LQIUDVWUXFWXUH%XLOGDIRXQGDWLRQE\SULYDWL]LQJWKHWHOHFRPPXQLFDWLRQVVHFWRU
FRQQHFWLQJLWWRJOREDO,&7LQIUDVWUXFWXUHDQGZRUNLQJZLWKLQWHUQDWLRQDOIXQGHUVWREROVWHULQYHVWPHQWV
x (QDEOH WKH EURDG SURYLVLRQ RI WHOHFRP SURGXFWV DQG VHUYLFHV %DVLF RIIHULQJV VXFK DV PRELOH
SKRQHV LQWHUQHW DQG PRELOH PRQH\ VKRXOG EH PDGH DFFHVVLEOH DFURVV WKH FRXQWU\ 'LJLWDO OLWHUDF\
LQFOXGLQJIRUFRQVXPHUVWREHQHILWIURPWKHVHSURGXFWVLVDOVRHVVHQWLDO)LQDOO\SURYLGHLQFHQWLYHVIRU
SLRQHHUHQWUHSUHQHXUVDQGRWKHUNH\VWDNHKROGHUVWRFUHDWHFRPPXQLWLHVDQGVHWXSWKHLQLWLDOEXLOGLQJ
EORFNVRIDIXQFWLRQDOHQWUHSUHQHXULDOHFRV\VWHP
%UDPDQQopcit±
7HFKKXEVLQ$IULFD
x 6WLPXODWHDQDVFHQWHQWUHSUHQHXULDOHFRV\VWHP7KHIRXQGDWLRQDOOD\HURIWKHHFRV\VWHPLVFRPSOHWH
LIFRQVXPHUVNQRZKRZWRXVHWHFKQRORJ\DQGEDVLFWHOHFRPDQGPRELOHSD\PHQWVHUYLFHVDUHZLGHO\
DYDLODEOH+RZHYHUWKHHQYLURQPHQWZLOOVWLOOEHFKDOOHQJLQJIRUEXGGLQJHQWHUSULVHVWRQDYLJDWH
x (QFRXUDJHWKHHPHUJHQFHRIWKHILUVWVHWRIYHQWXUHV$VVXPLQJPLQLPXPHQDEOLQJFRQGLWLRQVDUH
FUHDWHGLQWKHSUHYLRXVSKDVHWKHUHVXOWZLOOEHDFULWLFDOPDVVRIWHFKVWDUWXSVLQWKHHFRV\VWHPZKLFK
ZLOO EHJLQ WR \LHOG ULSSOH HIIHFWV )RU H[DPSOH HQWUHSUHQHXUV ZKR KDYH VXFFHVVIXOO\ H[LWHG WKHLU
FRPSDQLHVZLOOFRQWULEXWHILQDQFLDOFDSLWDODVDQJHOLQYHVWRUVRUYHQWXUHFDSLWDOLVWV7KH\ZLOODOVRSURYLGH
KXPDQFDSLWDOWKURXJKPHQWRUVKLSMXVWDVWKHRYHUDOOWDOHQWSRROLQFUHDVHVLQVL]HDQGTXDOLW\GXHLQSDUW
WRWKHQXPEHURIWKULYLQJVWDUWXSV)LQDOO\WKHHPHUJHQFHDQGYLVLELOLW\RIVXFFHVVIXOVWDUWXSVZLOOEHJLQ
WRFKDQJHWKHQRUPVDURXQGWKHOHJLWLPDF\RIHQWUHSUHQHXUVKLSDVDFDUHHUSDWKDQGSHUFHSWLRQVRIULVN
DQGZHDOWKFUHDWLRQ
%R[ +RZKXEVFXOWLYDWHVNLOOVWKURXJKIRFXVHGQHWZRUNLQJ
,QVXIILFLHQWKXPDQFDSLWDOLVDPDMRUEDUULHUIRU$IULFDQVWDUWXSV)RUH[DPSOHWKHH[RGXVRIWHFKQLFDOWDOHQWIURP
1LJHULDIRUEHWWHURSSRUWXQLWLHVDEURDGKDVOHIWVWDUWXSVZLWKLQH[SHULHQFHGGHYHORSHUVDQGDKXJHWDOHQWJDSLQWKH
HFRV\VWHPµ7KHREYLRXVGUDZEDFNRIWKHGHYHORSHUH[RGXVLVWKHUHVXOWLQJVKRUWDJHRIKLJKHQGWDOHQWLQDWHFK
HFRV\VWHPWKDW¶VUHODWLYHO\VWLOOLQLWVHDUO\GD\V:LWKWKHSURPLVHRISURIHVVLRQDOJURZWKDQGKLJKHUVDODULHV±LQGXVWU\
LQVLGHUVVD\1LJHULDQGHYHORSHUVLQ(XURSHDQG1RUWK$PHULFDFDQHDUQWLPHVPRUH±SURYLQJDELJGUDZORFDO
VWDUWXSVLQ1LJHULDVLPSO\FDQQRWFRPSHWH¶
7HFKKXEVDUHKHOSLQJWRILOOWKHJDSE\FRQQHFWLQJDFFHVVLEOHWDOHQWZLWKVWDUWXSVKHOSLQJVWDUWXSVFRQQHFWZLWK
HDFKRWKHUDQGEXLOGLQJWKHLUFDSDFLW\WKURXJKVWUDWHJLFPHQWRUVKLSLQLWLDWLYHV+XEVFDQKRVWPDWFKPDNLQJHYHQWV
IRUVWDUWXSVWRPHHWGHYHORSHUVGHVLJQHUVFRPSDQLHVDQGRWKHUNH\VWDNHKROGHUV
2UJDQL]LQJHYHQWVDURXQGVSHFLILFWRSLFVZLOODWWUDFWSDUWLFLSDQWVZLWKVKDUHGLQWHUHVWV)RUH[DPSOH-R]L+XELQ6RXWK
$IULFDHQFRXUDJHGFURVVSROOLQDWLRQEHWZHHQVWDUWXSVE\PRWLYDWLQJWKHPWRFRPPXQLFDWHZLWKRQHDQRWKHUZKLOH
OHYHUDJLQJ&RGH6FKRRORQHRILWVSURJUDPPHVWRPDWFKVNLOOVHWVDFURVVVWDUWXSV+XEVVXFKDV$FWLY6SDFHVLQ
&DPHURRQKDYHKLUHGORFDOPHQWRUV+XEVPD\DOVRFROODERUDWHZLWKHDFKRWKHUWRMRLQWO\GHSOR\KXPDQFDSLWDO
7HFKKXEVLQ$IULFD
&+$37(5&$7$/<6,1*7(&+(175(35(1(856+,3
(QWUHSUHQHXUVKLS SDUWLFXODUO\ WHFKHQDEOHG KLJKJURZWK HQWUHSUHQHXUVKLS LV RIWHQ FLWHG DV D NH\ WR
HFRQRPLFJURZWKDQGGHYHORSPHQWLQ$IULFD&RQVHTXHQWO\WKRVHZLWKDVWDNHLQ$IULFD¶VIXWXUH²LWVFLWL]HQV
JRYHUQPHQWFLYLOVRFLHW\DQGWKHSULYDWHVHFWRU²VHHNWRSURPRWHDQGHQFRXUDJHHQWUHSUHQHXUVKLSDVD
FDWDO\VW IRU HFRQRPLFSURVSHULW\ DQGVRFLDOZHOOEHLQJ $OWKRXJK WKHUH DUH PDQ\ ZD\V WRFKDUDFWHUL]H WKH
FRQWULEXWLRQVRIHQWUHSUHQHXUVKLSSDUWLFLSDWLRQLQWKHNQRZOHGJHHFRQRP\MREFUHDWLRQDQGWKHLPSDFWRI
KLJKJURZWKILUPVDUHNH\HOHPHQWVRIDEURDGHUGLVFXVVLRQ$OVRFULWLFDOWRWKHGLDORJXHLVDQXQGHUVWDQGLQJ
RIZKDWLQWHUYHQWLRQVFDQPHDQLQJIXOO\VXSSRUWHQWUHSUHQHXUVKLSDFWLYLW\LQ$IULFD
+RZHYHUWRSURSHUO\XQGHUVWDQGKRZWHFKKXEVPLJKWFRQWULEXWHWRHFRQRPLFGHYHORSPHQWLWLVKHOSIXOWR
H[SORUHKRZHQWUHSUHQHXUVKLSZKLFKKXEVVXSSRUWFDQVWLPXODWHSDUWLFLSDWLRQLQWKHNQRZOHGJHHFRQRP\
FUHDWHMREVDQGVWLPXODWHWKHHPHUJHQFHRIKLJKJURZWKILUPV
7KHNQRZOHGJHHFRQRP\
7KHWHUPµNQRZOHGJHHFRQRP\¶HPHUJHGLQWKHVWRPDUNWKHWUDQVLWLRQIURPWUDGLWLRQDOHFRQRPLFPRGHOV
WR WKRVH GULYHQ E\ WKH NQRZOHGJH SURGXFWLRQ $OWKRXJK WKHUH LV QR VWDQGDUG GHILQLWLRQ RI WKH NQRZOHGJH
HFRQRP\WKH:RUOG%DQNGHILQHVLWXVLQJIRXUPDLQSLOODUVLQVWLWXWLRQDOVWUXFWXUHVWKDWSURYLGHLQFHQWLYHV
IRUHQWUHSUHQHXUVKLSDQGXVHRINQRZOHGJHVNLOOHGODERXUDYDLODELOLW\DQGJRRGHGXFDWLRQV\VWHPV,&7
LQIUDVWUXFWXUHDFFHVVDQGDUREXVWLQQRYDWLRQODQGVFDSHWKDWLQFOXGHVDFDGHPLDWKHSULYDWHVHFWRUDQG
FLYLOVRFLHW\
0RGHUQSURJUDPPHUVDQGGHYHORSHUVFUHDWHWKLVNQRZOHGJHSHUKDSVE\EXLOGLQJDVHDUFKHQJLQHZKLOH
SUDFWLWLRQHUV XVH LW GR WKHLU ZRUN PRUH HIILFLHQWO\ DQG HIIHFWLYHO\ )RU H[DPSOH D EDQN PLJKW XVH D
SV\FKRPHWULF ULVN DVVHVVPHQW WRRO GHYHORSHG WR PRUH DFFXUDWHO\ HYDOXDWH IRXQGHUV VHHNLQJ IXQGLQJ
3HUKDSV QRW VXUSULVLQJO\ WKH NH\ WR WKLV HIILFLHQW SURGXFWLRQ DQG H[FKDQJH RI LQIRUPDWLRQ LV WKH XVH RI
LQIRUPDWLRQDQGFRPPXQLFDWLRQWHFKQRORJLHV,&7WKDWHQDEOHLQIRUPDWLRQWRWUDYHOTXLFNO\DQGEURDGO\YLD
WKHLQWHUQHW
%DVHGRQWKH:RUOG%DQNGHILQLWLRQGHVFULEHGDERYHDOORIWKHFRXQWULHVRIWKH2UJDQLVDWLRQIRU(FRQRPLF
&RRSHUDWLRQDQG'HYHORSPHQWDUHWUDQVLWLRQLQJWRZDUGNQRZOHGJHHFRQRPLHV8QIRUWXQDWHO\$IULFDDVD
ZKROH LV QRW 2Q WKH :RUOG %DQN¶V .QRZOHGJH (FRQRP\ ,QGH[ .(, $IULFD¶V VFRUH LV RQHWKLUG RI 1RUWK
$PHULFD¶V DQG RI WKDW DVVLJQHG WR (DVW $VLD DQG WKH 3DFLILF $IULFD DOVR SHUIRUPV SRRUO\ RQ NH\
LQGLFDWRUVRIGLJLWDONQRZOHGJHFUHDWLRQDQGXVHVXFKDVSXEOLVKLQJDFDGHPLFUHVHDUFKDQGILOLQJSDWHQWV
$VVXFKDFRPSOHWHWUDQVLWLRQWRWHFKQRORJ\GULYHQNQRZOHGJHHFRQRPLHVVHHPVOLNHDQDPELWLRXVQHDU
WHUPJRDO$IWHUDOOµGHYHORSLQJFRXQWULHVIDFHWUHPHQGRXVVWUXFWXUDOEDUULHUVWRHFRQRPLFJURZWKDQGJDSV
LQVNLOOVILQDQFLQJDQGLQIUDVWUXFWXUHSXWDVXEVWDQWLDOVWUDLQRQSURGXFWLYHFRPSHWLWLYHEXVLQHVVDFWLYLW\¶,Q
WKHFRQWH[WRINQRZOHGJHHFRQRPLHVZKHUHRXWSXWJDLQVDUHGULYHQE\WKHUHVRXUFHIXOQHVVRILQQRYDWRUV
UDWKHUWKDQLQSXWFKDQJHVWKHVLWXDWLRQLVHTXDOO\DFXWH1RQHWKHOHVVUHVHDUFKVXJJHVWVWKDWWKHNQRZOHGJH
HFRQRP\FRQWULEXWHVWRHFRQRPLFJURZWKDVGRWHFKQRORJ\LQQRYDWLRQDQGKLJKJURZWKHQWUHSUHQHXUVKLS
)RUWXQDWHO\WKHULVHRIKXEOLNHLQVWLWXWLRQVDQGWKHERWWRPXSWHFKQRORJ\HQDEOHGHQWUHSUHQHXUVKLSVXSSRUW
WKH\SURYLGHVLJQDOVNQRZOHGJHHFRQRP\DFWLYLW\DQGRIIHUVKRSHIRUWKHIXWXUH5HVHDUFKVXJJHVWVWKDW
WHFK KXEV DUH NH\ DFWRUV LQ WKH NQRZOHGJH HFRQRP\ GXH WR WKHLU DELOLW\ WR VWLPXODWH FRQQHFWLRQ DQG
FROODERUDWLRQEHWZHHQLPSRUWDQWSULYDWHDQGSXEOLFVHFWRUDFWRUV$GGLWLRQDOO\WKH\PD\DOVRKHOSVSUHDG
Ibid
7HFKKXEVLQ$IULFD
WKHEHQHILWVDVVRFLDWHGZLWKWHFKQRORJ\ZKLFKWHQGWREHOHVVHYHQO\GLVWULEXWHGWKHQWKHWHFKQRORJ\LWVHOI
7KHVH EHQHILWV FDQ EH GHOLYHUHG WKURXJK QRQWHFKQLFDO FRPSOHPHQWV WR WHFKQRORJ\ WKDW DUH LPSRUWDQW
FRQWULEXWRUVWRGHYHORSPHQW8SVNLOOLQJZRUNHUVWRKHOSWKHPSDUWLFLSDWHLQWKHNQRZOHGJHHFRQRP\LVD
UHOHYDQWH[DPSOH7HFKKXEVDOVRKDYHWKHFDSDFLW\WRKHOSGLVWULEXWHWKHEHQHILWVRIWHFKQRORJ\E\VHUYLQJ
DVQRQWHFKQLFDOPHGLDWRUV
7KHMREFUHDWLRQLPSHUDWLYH
6LQFHWKHVWKHJOREDOHFRQRP\KDVEHFRPHLQFUHDVLQJO\OHVVDEOHWRFUHDWHMREV$OORYHUWKHZRUOG
VORZJURZWKLQWKHIRUPDOVHFWRURIPDQ\FRXQWULHVKDVKDPSHUHGWKHDELOLW\WRFUHDWHZRUNRSSRUWXQLWLHV
$IULFDLVD\RXQJFRQWLQHQWZLWKRIWKHSRSXODWLRQXQGHUWKHDJHRIDQGEHWZHHQWKHDJHVRI
DQG7KLVµ\RXWKEXOJH¶PDNHVMREFUHDWLRQDSULRULW\
,QIDFWDOWKRXJK*'3JUHZSHU\HDUIURPWRUHDFKHGDQHVWLPDWHGLQDQGLV
SURMHFWHGWREHDSSUR[LPDWHO\LQDQGSRYHUW\UHPDLQVKLJKLQ$IULFD7KLVPD\EHLQGXHLQ
SDUWWRWKHIDFWWKDW$IULFD¶VHFRQRPLFJURZWKKDVQRWSURGXFHGDFRPPHQVXUDWHQXPEHURIQHZMREV,Q
IDFW GHVSLWH VLJQLILFDQW HFRQRPLF JURZWK RYHU WKH ODVW WZHQW\ \HDUV D LQFUHDVH LQ HFRQRPLF JURZWK
EHWZHHQDQGKDVRQO\\LHOGHGMREJURZWK,QRWKHUZRUGVHPSOR\PHQWJURZWKZDVRQO\
LQFUHDVLQJDWDUDWHRISHU\HDUVLJQLILFDQWO\OHVVWKDQWKHQHDUO\DQQXDOODERXUIRUFHJURZWK
$VVXFKSROLF\PDNHUVVHHNJURZWKWKDWLVUREXVWLQFOXVLYHDQGUDLVHVWKHOLYLQJVWDQGDUGVRI$IULFDQSHRSOH
-REFUHDWLRQLVDNH\HOHPHQWRIWKLV%HWZHHQDQGPLOOLRQSHRSOHZLOOHQWHU$IULFD¶VODERXU
PDUNHWHDFK\HDU$VDUHVXOWWKHQXPEHURISHRSOHLQ$IULFD¶VODERXUIRUFHZLOOLQFUHDVHIURPPLOOLRQ
LQWRQHDUO\ELOOLRQE\2IWKHPLOOLRQ\RXQJSHRSOHWKDWHQWHURQO\PLOOLRQVHFXUHZDJH
ODERXU7KHUHPDLQGHULVXQGHUHPSOR\HGRUVHWWOHVIRUYDULDEOHZRUNDUUDQJHPHQWV
,IWKHSUHYLRXVO\PHQWLRQHGORZUDWHRIMREJURZWKSHUVLVWVPLOOLRQSHRSOHZLOOMRLQWKHSRRORIXQHPSOR\HG
FLWL]HQV(PSOR\PHQWRSSRUWXQLWLHVPXVWEHFUHDWHGDWDYHU\ODUJHVFDOHWRDFFRPPRGDWHWKHP±PLOOLRQ
QHZMREVDQQXDOO\WRVWHPWKHULVHRIXQHPSOR\PHQW,QWKHZRUGVRI$NLQZXPL$GHVLQD3UHVLGHQWRIWKH
$IULFDQ'HYHORSPHQW%DQN$I'%
7KLVLVDKXJHRSSRUWXQLW\IRU$IULFD,IZHIL[WKH\RXWKXQHPSOR\PHQW
FKDOOHQJH$IULFDZLOOJDLQ±DQQXDOJURZWK7KDWPHDQV$IULFD¶V*'3ZLOOJURZE\ELOOLRQSHU
\HDUIRUWKHQH[W\HDUV$IULFD¶VSHUFDSLWDLQFRPHZLOOULVHE\HYHU\\HDUWRWKH\HDU¶
+RZHYHUWKHMREFUHDWLRQLPSHUDWLYHLVSUHGLFDWHGRQWKHDVVXPSWLRQWKDWWKHMREVLQTXHVWLRQDUHJRRGMREV
RUMREVWKDWRIIHULQFRPHVWDELOLW\HQDEOHMREKROGHUVWRVXSSRUWWKHPVHOYHVDQGWKHLUIDPLOLHVDQGSURYLGH
RSSRUWXQLWLHVIRUOHDUQLQJDQGJURZWK8QIRUWXQDWHO\LWVHHPVWKDWVXFKZRUNSODFHPHQWVDUHTXLWHVFDUFH
)XUWKHUWKHSUHYDOHQFHRIWUDGLWLRQDOORQJWHUPFDUHHURSSRUWXQLWLHVVHHPVWREHGHFUHDVLQJ$VDUHVXOW
HQWUHSUHQHXUVKLSLVYLHZHGDVDZD\WRDOORZ\RXQJSHRSOHWRSDUWLFLSDWHLQWKHODERXUPDUNHWZKLOHDOVR
VWLPXODWLQJWKHFUHDWLRQRIMREV
)RUWXQDWHO\DFFRUGLQJWR*(0DQGWKH3ULQFH¶V<RXWK%XVLQHVV,QWHUQDWLRQDOVXE6DKDUDQ$IULFDERDVWV
WKHKLJKHVWSURSRUWLRQRISRWHQWLDO\RXWKHQWUHSUHQHXUVFRPSDUHGWRRWKHUUHJLRQV6LPLODUO\RI
SHRSOHZKRDUHRIZRUNLQJDJHLQ$IULFDDUHVWDUWLQJQHZEXVLQHVVHVWKHKLJKHVWUDWHJOREDOO\+RZHYHU
DSSUR[LPDWHO\RI$IULFDQHQWUHSUHQHXUVDQGURXJKO\WKHVDPHSHUFHQWDJHRI\RXWKHQWUHSUHQHXUVVWDUW
.HOO\7DQG5)LUHVWRQHµ'LJLWDO'LYLGHQGV+RZ7HFK+XEVDUHKHOSLQJWR'ULYH(FRQRPLF*URZWKLQ$IULFD¶:RUOG'HYHORSPHQW5HSRUW%DFNJURXQG3DSHUVS
Ibid
Ibid
$I'%HWDOop. cit
Ibid
$I'%op. cit.:
$I'%µ$IULFDQ'HYHORSPHQW%DQNODXQFKHV<RXWK$GYLVRU\*URXSWRFUHDWHPLOOLRQMREV¶
Ibid±
Ibid
$I'%HWDOopcit
7HFKKXEVLQ$IULFD
QHZ EXVLQHVVHV EHFDXVH WKH\ FDQQRW ILQG VXLWDEOH MREV 7KLV LV KDUGO\ VXUSULVLQJ JLYHQ WKH GHDUWK RI
HPSOR\PHQWRSSRUWXQLWLHV
,Q FRQWUDVW RI $IULFDQ HQWUHSUHQHXUV ODXQFK YHQWXUHV WR SXUVXH EXVLQHVV RSSRUWXQLWLHV 1RWDEO\
HQWUHSUHQHXUV FKDVLQJ RSSRUWXQLWLHV DUH PRUH OLNHO\ WR FRQWULEXWH WR JURZWK $V LW FXUUHQWO\ VWDQGV VXE
6DKDUDQ$IULFDKDVKLJKWRWDOHQWUHSUHQHXULDODFWLYLW\UDWHVRIQHDUO\PHDVXUHGE\*(0+RZHYHULQD
VWXG\ RI HQWUHSUHQHXUV LQ PRUH WKDQ FRXQWULHV FRQGXFWHG E\ LQIR'HY LQ RQO\ ZHUH
RSHUDWLQJKLJKJURZWKFRPSDQLHV7KH\KDYHKLJKJURZWKSRWHQWLDOLHWKHDELOLW\WRFUHDWHRUPRUHMREV
LQWKHQH[WILYH\HDUV$VDUHVXOW$IULFDQHHGVWRILQGPRUHZD\VWRVXSSRUWDQGFXOWLYDWHRSSRUWXQLW\GULYHQ
HQWUHSUHQHXUV
+LJKJURZWKWHFKVWDUWXSV
,QWKHSDUDSKUDVHGZRUGVRIHFRQRPLVW3DXO.UXJPDQµILUPVDUH
QHDUO\HYHU\WKLQJZKHQLWFRPHVWRGHWHUPLQLQJDQHFRQRP\¶V
RYHUDOOSHUIRUPDQFH¶:K\LVWKLVWKHFDVH"+LJKJURZWKILUPV ‘A common view of a typical [high-
SOD\ D FHQWUDO UROH LQ WKH HFRQRP\ EHFDXVH RI WKHLU RXWVL]HG growth firm] is a small start-up in a
FDSDFLW\ WR FRQWULEXWH WR MRE DQG RXWSXW JURZWK LQ DGGLWLRQ WR high-tech sector that grows quickly
KHOSLQJILUPVDURXQGWKHPJURZ over a sustained period through
some favourable quality inherent to
)RUH[DPSOHKLJKJURZWKILUPVLQWKHFRXQWULHVVWXGLHGE\WKH
:RUOG %DQN FUHDWHG PRUH WKDQ KDOI RI DOO QHZ MREV GHVSLWH the firm, for example, a new
FRPSULVLQJ MXVW ± RI VHUYLFHV DQG PDQXIDFWXULQJ advanced technology, a brilliant
FRPSDQLHV marketing innovation, or an
extremely capable staff.’
,QWHUHVWLQJO\ KLJKJURZWK HQWHUSULVHV DUH QRW QHFHVVDULO\ WKH
VPDOOWHFKHQDEOHGYHQWXUHVFRPPRQO\GHVFULEHGLQQDUUDWLYHV High Growth Firms: Facts, Fiction and
DERXW $IULFDQ HQWUHSUHQHXUVKLS 7KHVH FRPSDQLHV WHQG WR EH Policy Options for Emerging Economies,
ODUJHUDQG\RXQJHUWKDQWKHDYHUDJHILUPDQGWKH\VKRZVLJQV Executive Summary, xix
RI KLJK JURZWK SRWHQWLDO RQO\ DIWHU D \HDU RU WZR RI RSHUDWLRQ
7KH\DOVRRSHUDWHLQGLIIHUHQWVHFWRUV
+LJKJURZWKLVWHPSRUDU\DQGYDULDEOH±WKDWLVILUPVH[SHULHQFHSHULRGVRIKLJKJURZWKDQGORZHUJURZWK
0DQ\KLJKJURZWKHQWHUSULVHVORVHPRPHQWXPDIWHUVKRZLQJLQLWLDOSURPLVH
1RQHWKHOHVV LW LV XVHIXO WR XQGHUVWDQG ZKDW VWLPXODWHV KLJK JURZWK JLYHQ WKH SRWHQWLDO MRE FUHDWLRQ DQG
RXWSXWEHQHILWV7KHSULPDU\IRUFHVDUHWKHDELOLW\RIDQHQWHUSULVHWRHQWHUDQGH[LWPDUNHWVDQGWRVKDUH
UHVRXUFHVYLDQHWZRUNVWKHPDQDJHULDOHQWUHSUHQHXUVKLSDQGLQQRYDWLRQVNLOOVDVVRFLDWHGZLWKUXQQLQJD
YHQWXUHFRQQHFWLRQVWRJOREDOPDUNHWVDQGNQRZOHGJHDQGDFFHVVWRILQDQFHDQGIOH[LEOHODERXUPDUNHWV
3ROLF\PDNHUVWHQGWRVXSSRUWKLJKJURZWKILUPVEHFDXVHRIWKHLUSRWHQWLDOFRQWULEXWLRQWRMREFUHDWLRQDQG
RXWSXWJURZWK6HOHFWLQJWKHVHILUPVHIIHFWLYHO\PHDQVWU\LQJWRILQGµWKHULJKWILUPDWWKHULJKWWLPH¶±LQ
RWKHUZRUGVLGHQWLI\LQJYHQWXUHVMXVWEHIRUHWKH\HQWHUDKLJKJURZWKSKDVH
Ibid.
*RVZDPLHWDOopcit[L
Ibid
Ibid
Ibid
Ibid[L[
Ibid[[
Ibid
Ibid[[L
7HFKKXEVLQ$IULFD
&DWDO\VLQJWHFKVWDUWXSV
7KH *OREDO (QWUHSUHQHXUVKLS ,QGH[ UDQNV VXE6DKDUDQ $IULFD ORZHVW RQ VWDUWXS VNLOOV ULVN
DFFHSWDQFH DQG ULVNFDSLWDO 7KLV LV GXH PDLQO\ WR JDSV LQHGXFDWLRQ DFFHVV DQG TXDOLW\ µ6XE6DKDUDQ
$IULFDLVVWLOOSODJXHGE\VLJQLILFDQWO\ORZHUOHYHOVRIOLWHUDF\SRRUQXPHUDF\VNLOOVDQGKLJKGURSRXWUDWHV
SDUWLFXODUO\ LQ VHFRQGDU\ VFKRROLQJ DQG ORZ OHYHO RI WHUWLDU\ HQUROPHQWV¶ &RQVHTXHQWO\ QHDUO\ RI
\RXQJ SHRSOH LQ $IULFD ODFN EDVLF MRE VNLOOV PDNLQJ LW GLIILFXOW IRU WKHP WR UXQ EXVLQHVVHV DQG FRPSHWH
JOREDOO\
7KH*OREDO(QWUHSUHQHXUVKLSDQG'HYHORSPHQW,QVWLWXWHDQGWKH*OREDO(QWUHSUHQHXUVKLS1HWZRUNVD\EHWWHU
VWDUWXS VNLOOV ZRXOG LPSURYH VWDUWXS HFRV\VWHPV LQ VXE6DKDUDQ $IULFD 7KLV PDNHV VHQVH DV SRRU
HQWUHSUHQHXUVKLS VNLOOV FUHDWH EDUULHUV IRU \RXQJ IRXQGHUV WR LGHQWLI\ DQG FDSWXUH EXVLQHVV RSSRUWXQLWLHV
UHGXFLQJWKHUDWHRIQHZEXVLQHVVVWDUWV,QDGHTXDWHPDQDJHULDOVNLOOVDVZHOODVORZVNLOOHGZRUNHUVDOVR
KDPSHUYHQWXUHFUHDWLRQDQGFRQWULEXWHWRIDLOXUH
µ$IULFDQFRXQWULHVQHHGPRUHLQVWLWXWLRQVDQGSURJUDPPHVWKDWFDQDFWLYHO\EULGJHWKHJDSEHWZHHQLQGXVWU\
QHHGVDQGHGXFDWLRQQRWDEO\IRFXVLQJRQPDQDJHPHQWDQGSUREOHPVROYLQJVNLOOV¶
(IIRUWV WR LPSURYH ILUP FDSDELOLWLHV W\SLFDOO\ LQYROYH SURYLGLQJ EDVLF VXSSRUW VHUYLFHV VXFK DV PHQWRULQJ
QHWZRUNLQJ DQG EXVLQHVV GHYHORSPHQW 7KHVH LQFOXGH ILQDQFLDO LQFHQWLYHV LQFOXGLQJ JUDQWV DQG HTXLW\
ILQDQFLQJ UHFRJQLWLRQ DZDUGV VXFK DV SUL]H FRPSHWLWLRQV DGYLVRU\ VHUYLFHV SURYLGHG E\ JRYHUQPHQW WR
HQKDQFHWHFKQRORJ\XVHDQGEXVLQHVVVWUDWHJ\DQGLQFXEDWRUVDQGDFFHOHUDWRUVWKDWSURYLGHIRXQGDWLRQDO
VXSSRUWWR\RXQJFRPSDQLHV
,QFXEDWRUVDQGDFFHOHUDWRUVFDQKHOSEXLOGWKHFDSDELOLWLHVRIKLJKJURZWKILUPVEHFDXVHWKH\FXOWLYDWHHDUO\
VWDJHKLJKSRWHQWLDOYHQWXUHV5HVHDUFKVXJJHVWVWKDWLQFXEDWHGILUPVFDQJHQHUDWHDGGLWLRQDOUHYHQXH
DQGHPSOR\PHQWDOWKRXJKWKHLPSDFWRQLQQRYDWLRQIRUH[DPSOHSDWHQWVLVLQVLJQLILFDQW
7KHULVHRIWHFKKXEV
2YHU WKH ODVW GHFDGH WHFK KXEV KDYH EHFRPH FULWLFDO DFWRUV ZLWKLQ $IULFDQ HQWUHSUHQHXULDO HFRV\VWHPV
5HFHQWUHVHDUFKE\WKH*60$VVRFLDWLRQVKRZVWKDWWKHQXPEHURIDFWLYHWHFKKXEVLQFUHDVHGE\LQ
MXVWWZR\HDUVIURPLQWRLQZLWKQHZKXEVFRQWLQXRXVO\ODXQFKLQJ
+XEV KDYH WZR SULPDU\ SXUSRVHV WR EXLOG EXVLQHVVHV DQG FUHDWH FRPPXQLW\ 7KHUH KDYH EHHQ PDQ\
DWWHPSWVWRGHILQHDWHFKKXEDQGGLIIHUHQWLDWHEHWZHHQLWVIXQFWLRQVKXEODELQFXEDWRUDQGDFFHOHUDWRU
µ+XEVFDQWDNHPDQ\IRUPV\HWPRVWRSHUDWHDVVRPHFRPELQDWLRQRIDZRUNVSDFHLQWHUQHWFDIpFRIIHH
VKRSWUDLQLQJFHQWUHLQFXEDWRUDFFHOHUDWRUHYHQWYHQXHDQGRUPDNHUVSDFH:KLOHWKHUHLVJUHDWGLYHUVLW\
7KLVLQGH[SXEOLVKHGE\WKH*OREDO(QWUHSUHQHXUVKLSDQG'HYHORSPHQW,QVWLWXWHDQGWKH*(0LVDFRPSRVLWHLQGLFDWRURIWKHKHDOWKRIWKHHQWUHSUHQHXUVKLSHFRV\VWHPLQDJLYHQFRXQWU\*OREDO(QWUHSUHQHXUVKLS
,QGH[ 5HWULHYHGIURPKWWSVWKHJHGLRUJJOREDOHQWUHSUHQHXUVKLSLQGH[S
*(0DQGWKH3ULQFH¶V<RXWK%XVLQHVV,QWHUQDWLRQDOopcit
Ibid
*OREDO(QWUHSUHQHXUVKLSDQG'HYHORSPHQW,QVWLWXWHDQG*(0opcit
$I'%HWDOopcit
Ibid
$I'%op. cit
*RVZDPLHWDOop. cit
Ibid[[LL
Ibid[[LL
Ibid
7HFKKXEVLQ$IULFD
KXEWRKXEZLWKUHVSHFWWRVWUXFWXUHDPHQLWLHVPHPEHUVKLSDQGRWKHUIDFWRUVWKHJHQHUDOFRQVHQVXVLVWKDW
KXEVVHUYHDVDPHHWLQJSODFHIRUDFRPPXQLW\¶
7ZRRIWKHPRVWSURPLQHQWGHILQLWLRQVHPSKDVL]HZKRWHFKKXEVVHUYHPDLQO\HQWUHSUHQHXUVDQGWHFKQRORJ\
HQWKXVLDVWVDQGZKDWWKH\GRFUHDWHRSSRUWXQLWLHVWRFRQYHQHDQGQHWZRUN$WLWVFRUHDKXELVDVSDFH
ZKHUHWHFKHQWKXVLDVWVLQQRYDWRUVDQGHQWUHSUHQHXUVJDWKHUWRVKDUHLGHDVDQGEXLOG
$WHFKKXERULQQRYDWLRQVSDFHSULRULWL]HVVNLOOVGHYHORSPHQWDQGMREFUHDWLRQRYHUFRPSDQ\EXLOGLQJ,WPD\
RSHUDWHDQRSHQFRZRUNLQJPRGHOWKDWSURYLGHVVSDFHDQGIRFXVHVRQFUHDWLQJFRPPXQLW\DQGIRVWHULQJ
FROODERUDWLRQ $OWKRXJK KXEV VHUYH GLIIHUHQW SXUSRVHV DQG RSHUDWH GLIIHUHQW PRGHOV WKH\ VKDUH PDQ\
FRPPRQFKDUDFWHULVWLFVVXFKDV
&RPPXQLW\EXLOGLQJ+XEVVWLPXODWHWKHEXLOGLQJRIHQWUHSUHQHXULDOFRPPXQLWLHVE\FUHDWLQJDFRPPXQDO
VSDFHDQGDVKDUHGVHQVHRILGHQWLW\DPRQJPHPEHUV7HFKKXEFRPPXQLWLHVDUHXVXDOO\VHOIVWDUWLQJVHOI
RUJDQL]LQJ DQG GULYHQ E\ HPSRZHUHG PHPEHUV 7KH KXE RIWHQ EULQJV WRJHWKHU PHPEHUV ZKR ZRXOG
RWKHUZLVHQRWPHHWWKH\FRQWULEXWHGLYHUVHSHUVSHFWLYHVDQGNQRZOHGJH
)RVWHUFROODERUDWLRQ+XEVDVVHPEOHGLIIHUHQWW\SHVRISHRSOHWRVKDUHLGHDVDQGZRUNWRJHWKHUZKLFK
RIWHQVHUYHVWRVWLPXODWHLQQRYDWLRQ
&DWDO\VHLQQRYDWLRQ+XEVFXUDWHFUHDWLYHDQGG\QDPLFVSDFHVWKDWLQVSLUHLQQRYDWLRQ
:KDWGRWHFKKXEVGR"
+XEVPXVWEHVHHQDVK\EULGRUJDQL]DWLRQVWRXQGHUVWDQGZKDWWKH\GRHVSHFLDOO\DVLWUHODWHVWRWKHLULPSDFW
RQ VWDUWXSV +\EULG RUJDQL]DWLRQV EXLOG UHODWLRQVKLSV DQG QHWZRUNV HQKDQFH FDSDELOLWLHV DQG VHUYH DV
LQWHUPHGLDULHV
+XEVDVK\EULGRUJDQL]DWLRQV+XEVVHUYHPXOWLSOHSXUSRVHVDVVXPHPDQ\IRUPVWUDQVFHQGERXQGDULHV
DQGFRPELQHWKHLQVWLWXWLRQDOQRUPVDVVRFLDWHGZLWKGLIIHUHQWVWUXFWXUHV.H\HOHPHQWVRIDKXEUHIOHFWWKHLU
K\EULGQDWXUHVXFKDVFRUHSXUSRVHEXVLQHVVPRGHOVIXQGLQJDQGSDUWQHUVKLSV)RUH[DPSOHKXEVDLPWR
KDYH D VRFLDO LPSDFW DV WKH\ DVSLUH WR EH DQG FUHDWH SURILWDEOH EXVLQHVVHV 7KH\ DOVR KDYH DVVRUWHG
IXQFWLRQVRIIHULQJDFWLYLWLHVDVGLYHUVHDVSURYLGLQJFRZRUNLQJVSDFHKRVWLQJHYHQWVRIIHULQJWUDLQLQJVDQG
LQFXEDWLQJ VWDUWXSV +XEV DVVXPH GLIIHUHQW IRUPV ± LQFXEDWRUV DFFHOHUDWRUV QRQJRYHUQPHQWDO
RUJDQL]DWLRQV1*2VDQGVRFLDOHQWHUSULVHV±LIDQGZKHQWKHVHPRGHOVDOLJQZLWKWKHLUJRDOV
+XEVDVQHWZRUNDQGUHODWLRQVKLSIDFLOLWDWRUV$VKXEPHPEHUVHQWUHSUHQHXUVFDQILQGRQHDQRWKHUDQG
MRLQ IRUFHV WR H[SORLW RSSRUWXQLWLHV DQG RYHUFRPH FKDOOHQJHV +XEV DOVR KHOS HQWUHSUHQHXUV FRQQHFW WR
VWDNHKROGHUVRXWVLGHWKHKXEVXFKDVLQYHVWRUVDQGHGXFDWLRQDOLQVWLWXWLRQV)LQDOO\KXEVKHOSVWLPXODWH
LQQRYDWLRQ E\ FUHDWLQJ SUR[LPLW\ ZKLFK OHDGV WR FROODERUDWLRQ DV ZHOO DV VRFLDO SUR[LPLW\ ZKLFK JLYHV
HQWUHSUHQHXUVDVHQVHRIVKDUHGLGHQWLW\WKDWHQFRXUDJHVNQRZOHGJHH[FKDQJHDQGOHDUQLQJ
+XEVDVFDSDFLW\EXLOGHUV+XEVRIIHUIRUPDOWUDLQLQJWRVWDUWXSVWREXLOGVNLOOVDQGHQDEOHPDQDJHUVWR
H[FKDQJH H[SHUWLVH 7KH\ KHOS WR FXOWLYDWH FRUH EXVLQHVV VNLOOV WHFKQLFDO VNLOOV DQG µVRIW¶ VNLOOV UHODWHG WR
PDQDJHPHQWDQGOHDGHUVKLS
+XEVDVLQWHUPHGLDULHV,QWHUPHGLDULHVDUHLQVWLWXWLRQVWKDWEULGJHV\VWHPJDSVRULQVWLWXWLRQDOYRLGV6L[
W\SHVRIYRLGVUHSUHVHQWJDSVLQWKHLQVWLWXWLRQVDQGLQIUDVWUXFWXUHVWKDWVXSSRUWEXVLQHVVDQGPDUNHWV
'H%HHUHWDOop. cit
.HOO\op. cit.
Ibid
Ibid
Ibid±
Ibid
7HFKKXEVLQ$IULFD
3URGXFWPDUNHWYRLGVDIIHFWWKHUHODWLRQVKLSVRIILUPVZLWKWKHLUVXSSOLHUVDQGFXVWRPHUV
/DERXUPDUNHWYRLGVPDNHLWGLIILFXOWIRUFRPSDQLHVWRILQGTXDOLILHGHPSOR\HHVDQGSDUWQHUV
&DSLWDOPDUNHWYRLGVFKDUDFWHUL]HWKHODFNRIILQDQFLDOFDSLWDOWKDWVWDUWXSVQHHGWRJURZ
5HJXODWRU\YRLGVDUHWKHYDULDEOHRUPLVVLQJUXOHVDQGQRUPVIRUGRLQJEXVLQHVV
&RQWUDFWLQJYRLGVGHVFULEHWKHODFNRIIRUPDOZULWWHQFRQWUDFWV
,QVWLWXWLRQDO YRLGV LQGLFDWH WKH GHJUHH WR ZKLFK WKH EDVLF HQDEOLQJ HQYLURQPHQW FRQGXFLYH WR
VXSSRUWLQJJURZLQJEXVLQHVVHVLVDEVHQW
+XEV DGGUHVV WKHVH JDSV E\ EXLOGLQJ QHWZRUNV LQFUHDVLQJ WKH SRRO RI KXPDQ FDSLWDO FUHDWLQJ WUXVW WR
HQFRXUDJHEXVLQHVVGHDOLQJVDQGVHUYLQJDVWKHIRXQGDWLRQVRIHFRV\VWHPJURZWK
7DEOH 7\SLFDOKXEVHUYLFHV
+XEDSSURDFK 6HUYLFHV
6WDUWXSFUHDWLRQ
x 0HQWRULQJ
x %XVLQHVVDQGPDUNHWLQJVXSSRUW
x 6HHGIXQGLQJ
x 1HWZRUNLQJLQFOXGLQJZLWKLQYHVWRUV
6WDUWDQGGHYHORSQHZJURZWKRULHQWHGVWDUWXSV x $FFHOHUDWLRQW\SHVWDUWXSFRPSHWLWLRQV
x 'HDOEURNHUDJH
x 2IILFHVSDFH
6NLOOVGHYHORSPHQW
x 7HFKQLFDODQGEXVLQHVVWUDLQLQJVZRUNVKRSVDQGFOLQLFV
%URDGHQHQWUHSUHQHXULDODQGWHFKQLFDOWDOHQWSRRODQG
x 9LUWXDOOHDUQLQJFRXUVHVDQGSODWIRUPV
WUDLQ FRPSHWHQW SRWHQWLDO VWDUWXS IRXQGHUV DQG
HPSOR\HHV x 0RELOHDSSWHVWLQJIDFLOLWLHV
1HWZRUNEXLOGLQJ
x 5HJXODULQGHSWKRQHRQRQHVWDUWXSPHQWRUVKLSDQG
FRDFKLQJ
%ULQJ WRJHWKHU GLYHUVH VWDNHKROGHU JURXSV DQG KHOS x &RUHEXVLQHVVVXSSRUWDFFRXQWLQJOHJDOVHUYLFHVHWF
DFWLYDWHDQGRUJDQL]HFRPPXQLWLHV x %XVLQHVV GHYHORSPHQW EURNHUDJH DQG PHGLDWLRQ RI
IRUPDOFRQWUDFWVJUDQWVDQGSDUWQHUVKLSV
7HFKKXEVLQ$IULFD
,QQRYDWLRQ9LOODJH3KRWRFRXUWHV\RI&.-DSKHWK
7HFKKXEVLQ$IULFD
+RZGRKXEVFUHDWHYDOXH"
+XEVDGGYDOXHLQWKUHHZD\VEXLOGLQJFRPPXQLWLHVVXSSRUWLQJVWDUWXSVDQGFRQWULEXWLQJWRZHOOEHLQJ
+XEVRIIHUWKHJUHDWHVWEHQHILWWKURXJKFRPPXQLW\EXLOGLQJUDWKHUWKDQDIIHFWLQJWKHRXWFRPHRIDVSHFLILF
HQWUHSUHQHXU7KLVLVWUXHHYHQWKRXJKKXEVGRQRWDOZD\VPDNHFRPPXQLW\EXLOGLQJDQH[SOLFLWJRDO)RU
H[DPSOH QHWZRUNLQJ ZDV WKH WRS EHQHILW DWWULEXWHG WR LQIR'HY¶V QHWZRUN RI WHFK KXEV FDOOHG P/DEV DQG
P+XEV
)HZVWDUWXSIRXQGHUVDWWULEXWHWKHODXQFKRIWKHLUFRPSDQLHVWRWKHLQWHUYHQWLRQRIKXEV0DQ\DOVRILQG
LQWHUDFWLRQVZLWKLQWKHKXEVXSHUILFLDOZKLFKSUHYHQWVLQH[SHULHQFHGIRXQGHUVIURPFRQQHFWLQJZLWKDFWRUV
WKH\ZRXOGQRWRUGLQDULO\PHHWVXFKDVVHDVRQHGHQWUHSUHQHXUVDQGLQYHVWRUV$VFRPPXQLW\EXLOGHUV
KRZHYHUKXEVFUHDWHDVHQVHRIVKDUHGLGHQWLW\DQGSXUSRVHWKDWH[WHQGVEH\RQGWKHSURYLVLRQRIEDVLF
VHUYLFHVVXFKDVGHVNVDQGLQWHUQHWDFFHVV
:LWKLQ D WUDGLWLRQDO IUDPHZRUN KXEV DUH W\SLFDOO\ YLHZHG DV SXUYH\RUV RI LQQRYDWLRQ &RQVHTXHQWO\ DQ\
IDLOXUHWRLQQRYDWHLVVHHQDVDIDLOXUHWRFRQWULEXWHWRGHYHORSPHQW%XWWKLVRYHUORRNVWKHFRQWULEXWLRQV
WKDW KXEV PDNH LQ WHUPV RI RIIHULQJ SUHYLRXVO\ XQH[SORUHG SURIHVVLRQDO RSSRUWXQLWLHV LQ WHFK DQG
HQWUHSUHQHXUVKLS ERRVWLQJ SUREOHPVROYLQJ DELOLW\ IRVWHULQJ VKDUHG LGHQWLW\ DQG FUHDWLQJ FRPPXQLW\
9LHZLQJ KXEV VWULFWO\ DV µVWDUWXS IDFWRULHV¶ DQG SURPRWLQJ SROLFLHV WKDW FRQQHFW LQQRYDWLRQ WR HFRQRPLF
GHYHORSPHQWPD\PLVVRUXQGHUYDOXHRWKHULPSRUWDQWDVSHFWVRIGHYHORSPHQW)URPWKLVSHUVSHFWLYHKXEV
FRXOGEHYLHZHGDVKROLVWLFFRQWULEXWRUVWRHFRQRPLFGHYHORSPHQW
+XEVFDQVXSSRUWGHYHORSPHQWDQGMREFUHDWLRQLQFRXQWULHVVXFKDV1LJHULDZKHUHWKHDFFHVVWKDWKXEV
SURYLGH WR HOHFWULFLW\ VSDFH DQG PHQWRUVKLS DUH KDUG WR GXSOLFDWH JLYHQ WKH SUHYDLOLQJ FRQGLWLRQV LQ WKH
FRXQWU\,QVXFKDVFHQDULRWKHKXEDWWUDFWVHQWUHSUHQHXUVDQGIXQGLQJDQGUDLVHVWKHSURILOHRIORFDOVWDUW
XSV$GGLWLRQDOO\PDQ\DUJXHWKDWDLGLQJVWDUWXSVJHQHUDWHVVRFLDOLPSDFWWKURXJKWKHLUFRQWULEXWLRQWR
HFRQRPLFGHYHORSPHQW
7HFKKXEVFDQDGGYDOXHLQRWKHUZD\VDVZHOO)RUH[DPSOHWKH:RUOG%DQN¶VLQIR'HYSURJUDPPHIRXQG
WKDWP/DEVDQGP+XEVLPSDFWVWDUWXSVE\LQFUHDVLQJWKHLUOLIHVSDQVOHYHORIPDWXULW\MREFUHDWLRQDELOLW\
DQGLQFRPHJHQHUDWLRQ9HQWXUH&DSLWDOIRU$IULFD9&$IULFDIRXQGLQDUHSRUWWKDWVWDUWXSVWKDW
SDUWLFLSDWHLQDQLQFXEDWRURUDFFHOHUDWRUSURJUDPPHRUDUHVHOHFWHGIRUDSLWFKHYHQWDWWUDFWDQDGGLWLRQDO
LQ LQYHVWPHQW RQ DYHUDJH ± PRUH WKDQ VWDUWXSV WKDW GR QRW WDNH SDUW LQ WKHVH W\SHV RI
DFWLYLWLHV
)LQDOO\ KXEV PD\ EH DEOH WR DIIHFW WKH HFRV\VWHPV LQ ZKLFK WKH\ RSHUDWH )RU LQVWDQFH P/DEV FUHDWHG
HFRV\VWHPOHYHOLPSDFWE\WUDLQLQJWKHILUVWJHQHUDWLRQRIIRXQGHUVDQGVWDUWXSHPSOR\HHVDQGFRQQHFWLQJ
FRPSDQLHVWRIXQGV
,QIR'HYopcit'H%HHUHWDOopcit
Ibid
)ULHGHULFLibid
Ibid
Ibid
Ibid
Ibid
$NDQOH2DQG$2PRWD\Rµ3URVSHFWVRI,QFXEDWLRQ+XEVDVD'HYHORSPHQW'ULYHULQ6RXWKZHVW1LJHULD¶,QNigerian Anthropological and Sociological Practitioners Association 22nd Annual Conference
on Contours of Change, Modern Conflict and Mode of Production in NigeriaS±
'H%HHUHWDOop. cit.9HQWXUH&DSLWDOIRU$IULFD2015 Venture Finance in Africa: The progress of early-stage high-potential growth companiesS
7HFKKXEVLQ$IULFD
&RPPRQFKDOOHQJHVIRUKXEV
7HFKKXEVIDFHDYDULHW\RIFKDOOHQJHV7KHKXEFRQFHSWLVVWLOOUHODWLYHO\QHZDQGWKHUHDUHPLVFRQFHSWLRQV
DERXWKRZWHFKQRORJ\FDQEHQHILWXVHUV+XEVPXVWLQYHVWLQHGXFDWLQJVWDNHKROGHUVSRWHQWLDOSDUWQHUVDQG
WKHJHQHUDOSXEOLFDERXWZKDWWKH\DUHZKDWWKH\GRDQGKRZWKH\DGGYDOXH
+XEVKDYHGLVFRYHUHGPDQ\ZD\VWRUDLVHDZDUHQHVVDERXWWKHLUDFWLYLWLHV7KHVHLQFOXGHHQJDJLQJZLWK
HGXFDWLRQDOLQVWLWXWLRQVDQGFRPPXQLWLHVRUJDQL]LQJHYHQWVWKDWDWWUDFWSDUWLFLSDQWVVXFKDVWHFKFRPSDQLHV
FLYLO VRFLHW\ RUJDQL]DWLRQV DQG JRYHUQPHQW DQG KRVWLQJ PRQWKO\ HQJDJHPHQW PHHWLQJV ZLWK WKH PDLQ
VWDNHKROGHUV (TXDOO\ LPSRUWDQWO\ KXEV FDQ HQFRXUDJH WHFKQRORJLVWV ZKR RIWHQ ODFN VRFLDO VFLHQFH
EDFNJURXQGVWRPRYHEH\RQGWHFKQRORJ\DQGJURXQGWKHLUHQGHDYRXUVLQWKHQHHGVRISRWHQWLDOFXVWRPHUV
DQGXVHUV
2WKHUFRPPRQFKDOOHQJHVLQFOXGH
x )LJKWLQJIRUWDOHQW,GHQWLI\LQJDQGUHWDLQLQJWDOHQWLVDFKDOOHQJHIRUKXEVDQGWKHVWDUWXSVWKH\VXSSRUW
)RU H[DPSOH KXEV DQG VWDUWXSV VWUXJJOH WR SD\ ZHOO HQRXJK WR DWWUDFW DQG NHHS KLJKTXDOLW\ VWDII
7KH\PD\LQYHVWLQWUDLQLQJSHUVRQQHOZKRODWHUPRYHWRFRPSHWLWRUVZKRFDQSD\PRUH1RQHWKHOHVV
FUHDWLQJDUREXVWLQVWLWXWLRQDOFXOWXUHZLWKDVWURQJYDOXHSURSRVLWLRQWRPHPEHUVDQGHPSOR\HHVDVZHOO
DVJLYLQJWKHPRSSRUWXQLWLHVWRVKDSHWKHRUJDQL]DWLRQFDQERRVWFRPPLWPHQW
x 0DQDJLQJKLJKIL[HGFRVWV+XEVPD\VWUXJJOHWRDIIRUGUHOLDEOHDFFHVVWRHOHFWULFLW\DQGWKHLQWHUQHW
ZKLFKFDQEHSURKLELWLYHO\H[SHQVLYHDQGGLIILFXOWWRVHFXUH,Q6LHUUD/HRQHIRULQVWDQFHD0%OLQH
FRVWV DERXW D PRQWK 0RUHRYHU JRYHUQPHQWV LQ FRXQWULHV VXFK DV &DPHURRQ (WKLRSLD DQG
=LPEDEZHFDQ WXUQ WKH LQWHUQHW RII :KHQ WKLV KDSSHQHG LQ DQJORSKRQH &DPHURRQ WKH $FWLY6SDFHV
FRPPXQLW\ KDG WR UHORFDWH WR DQ DUHD WKDW UHPDLQHG FRQQHFWHG $FFHVV WR SRZHU FDQ DOVR EH
SUREOHPDWLFDO)RUH[DPSOH+DSD6SDFHLQ*KDQDPXVWXVHJHQHUDWRUVDQGEDWWHULHVGXHWRIUHTXHQW
RXWDJHVDQGLQ(WKLRSLDLFHDGGLVLVUHTXLUHGE\LWVODQGORUGWRUHVWULFWLWVXVHRIDX[LOLDU\SRZHU
x &RQQHFWLQJZLWKUXUDOFRPPXQLWLHV0RVWKXEVDUHEDVHGLQFLWLHVVRHQJDJLQJZLWKUXUDOFRPPXQLWLHV
FDQEHGLIILFXOW5HDFKLQJWKHPLVDSULRULW\KRZHYHUEHFDXVHPRVW$IULFDQVOLYHLQUXUDODUHDV+XEV
FDQ SDUWQHU ZLWK 1*2V VXFK DV PLFURILQDQFH LQVWLWXWLRQV WKDW KDYH EXLOW UHODWLRQVKLSV ZLWK UXUDO
FRPPXQLWLHVDSSO\XVHUFHQWUHGPHWKRGRORJLHVDQGDUHSK\VLFDOO\SUHVHQWLQWKHVHDUHDV)RUH[DPSOH
LFHDGGLVHPSOR\HGDXVHUFHQWUHGDSSURDFKWRKHOSEHHNHHSHUVGHYHORS<HQHPDUDPLFURLQYHVWPHQW
SODWIRUPWKDWUDLVHVFDSLWDOIRUKRQH\SURGXFWLRQ
x )LQGLQJDPDUNHWDQGFRPSHWLQJ7KHVWDUWXSVWKDWKXEVVXSSRUWPD\VWUXJJOHWRFRPSHWHZLWKODUJHU
FRPSDQLHVZLQRYHUFRQVXPHUVDQGFRQYLQFHSRWHQWLDOFOLHQWVWKDWWKH\FDQGHOLYHU6WDUWXSVPD\KDYH
WR LQYHVW LQ FOLHQW HGXFDWLRQ DQG PDUNHWLQJ WR FRXQWHUDFW WKH SUHIHUHQFH RI PDQ\ SRWHQWLDO FOLHQWV IRU
ODUJHUEHWWHUNQRZQFRPSDQLHV+XEVDOVRILQGWKDWLWLVRIWHQGLIILFXOWIRUVWDUWXSVWRDWWUDFWLQLWLDOXVHUV
+DSD 6SDFH DGGUHVVHG WKLV LVVXH E\ RUJDQL]LQJ VKRZFDVHV IRU VWDUWXSV WR VKDUH WKHLU VROXWLRQV
FRPPXQLFDWLQJ DERXW WKHP YLD :KDWV$SS DQG HQJDJLQJ ORFDO WHFKQRORJ\ LQIOXHQFHUV 7KHVH VWHSV
HQFRXUDJHGSHRSOHWRWU\WKHQHZSURGXFWVDQGLQFUHDVHGDZDUHQHVVRIWKHP
x 1DYLJDWLQJORFDWLRQFKDQJHV.+XEVPD\UHORFDWHGXHWRULVLQJUHQWDOFRVWVRUWKHQHHGWRH[SDQG6XFK
DFKDQJHFDQGLVUXSWWKHFRPPXQLW\FRKHVLRQWKDWLVFHQWUDOWRVRPDQ\KXEV)RUH[DPSOHZKHQL6SDFH
LQ*KDQDPRYHGLWORVWPDQ\PHPEHUVZKRXVHGLWSULPDULO\IRUVSDFHDQGLQWHUQHWEXWUHWDLQHGWKRVH
ZKRZHUHGHGLFDWHGWRWKHFRPPXQLW\+XEVPD\DOVRILQGLWGLIILFXOWWRWUDQVLWLRQPDWXULQJYHQWXUHVRXW
RI WKHLU VSDFHV JLYHQ WKH FRVW RI RIILFH UHQWDOV DQG OHJDO UHJLVWUDWLRQ REVWDFOHV ,Q WKHVH LQVWDQFHV
LQFXEDWRUV DQG FRZRUNLQJ VSDFHV PD\ VHUYH DV D EULGJH IRU VWDUWXSV WKDW KDYH RXWJURZQ JHQHUDO
SXUSRVHKXEVEXWVWLOOQHHGVRPHVXSSRUW
x $GDSWLQJWRFKDQJLQJUHDOLWLHVDQGPDQDJLQJOLPLWHGFDSDFLW\.7HFKKXEVXVXDOO\DGDSWWRPHHWWKH
QHHGVRIWKHLUHFRV\VWHPV%XWWKLVDGDSWDELOLW\PD\FRPHDWDFRVW7KHFDSDFLW\RIKXEWHDPVFDQEH
RYHUVWUHWFKHG JLYHQ WKH GHPDQGV RI WKH HFRV\VWHPV LQ ZKLFK WKH\ RSHUDWH WKRVH LPSRVHG E\
VWDNHKROGHUVVXFKDVIXQGHUVDQGWKHGHPDQGLQJUROHVWKH\SOD\DVHFRV\VWHPJDSILOOHUV7KHVHWHDPV
7UHLVPDQ/µ&DSWXULQJ/HDUQLQJIURP7HFK,QQRYDWLRQ+XEVDFURVV$IULFD¶SS±7UHLVPDQ/µ&DSWXULQJ/HDUQLQJIURP7HFK,QQRYDWLRQ+XEVDFURVV$IULFD¶SS±
7HFKKXEVLQ$IULFD
PD\QRWEHDEOHWRGHOLYHUEHFDXVHRIOLPLWHGFDSDFLW\RYHUZKHOPLQJGHPDQGVDQGGLIILFXOWRSHUDWLQJ
HQYLURQPHQWV
$FRPSUHKHQVLYHIUDPHZRUNIRUGHILQLQJKXEVXFFHVV
7KHZRUNRIKXEVPXVWEHHYDOXDWHGHIIHFWLYHO\WRKHOSXQGHUVWDQGWKHHFRV\VWHPDVDZKROH$VVHVVLQJ
KXEVXFFHVVVKRXOGQRWEHEDVHGRQO\RQLWVFRQWULEXWLRQVWRVWDUWXSVXFFHVVDQGHFRQRPLFGHYHORSPHQW
DVWKHFRUHSXUSRVHRIPDQ\HFRV\VWHPVDQGKXEVLVWRFUHDWHVRFLDOLPSDFW7KLVVXJJHVWVWKDWDKROLVWLF
DSSURDFKLVQHHGHG2QHIUDPHZRUNWKDWGHILQHVKXELPSDFWFRPSULVHVHLJKWFDWHJRULHV
x )RVWHULQJ HFRV\VWHP VXFFHVV PHDQV WKH HIIHFW D KXE KDV RQ WKH HFRV\VWHP LW LQKDELWV
)RUH[DPSOHSRVLWLRQLQJ5ZDQGDDVDQHPHUJLQJ,&7HQDEOHGNQRZOHGJHHFRQRP\LVDSULRULW\IRULWV
JRYHUQPHQW+XEVZLOOEHFRQVLGHUHGVXFFHVVIXOLIWKH\FRQWULEXWHWRWKLVJRDOE\EXLOGLQJWKHHFRV\VWHP
DQG SUHSDULQJ VWDUWXSV WR HQJDJH ZLWK RWKHU SDUWV RI LW E\ KHOSLQJ WKHP UDLVH LQYHVWPHQW IXQGV IRU
H[DPSOH
x )DFLOLWDWLQJKXERXWFRPHVUHIHUVWRWKHZD\VWKDWKXEVKDYHWDQJLEOHLPSDFWVRQWKHFRPSDQLHVWKH\
VXSSRUW DQG WKHLU FRQWULEXWLRQ WR FRQWHQW DQG NQRZOHGJH GHYHORSPHQW /DXQFKLQJ VWDUWXSV LV RQH
LQGLFDWRURIVXFFHVVEXWKHOSLQJWKHPFUHDWHMREVRUODQGDEX\HULVDOVRLPSRUWDQW+XEVDOVRFDQEH
UDWHG RQ KRZ ZHOO WKH\ KHOS SHRSOH HVSHFLDOO\ EXGGLQJ HQWUHSUHQHXUV EXLOG LQGHPDQG VNLOOV DQG
FDSDELOLWLHV
x 3URYLGLQJLQIUDVWUXFWXUHUHIHUVWRWKHVSDFHWKDWKXEVSURYLGH+XEVQRWRQO\FUHDWHDQHQYLURQPHQW
LQIXVHGZLWKWKHVSLULWRIFUHDWLYLW\DQGLQQRYDWLRQEXWWKH\KHOSVWDUWXSVVXUYLYHE\PDNLQJRIILFHVSDFH
HOHFWULFLW\DQGLQWHUQHWDIIRUGDEOHDQGDFFHVVLEOH
x %XLOGLQJ FRPPXQLW\ +XEV VHUYH DV FHQWUDO QH[XV SRLQWV IRU HQWUHSUHQHXUV DQG RWKHU OLNHPLQGHG
LQGLYLGXDOV IRFXVHG RQ WHFKQRORJ\ DQGHQWUHSUHQHXUVKLS WR PHHW DQG VKDUH LGHDV 2WKHU FRPPXQLW\
FHQWUHGVRXUFHVRIYDOXHDGGLWLRQLQFOXGHFUHDWLQJSDUWQHUVKLSDQGSURMHFWRSSRUWXQLWLHVIRUPHPEHUV
H[SRVLQJWKHPWRQHZLGHDVDQGNQRZOHGJHWKURXJKHYHQWVDQGEXLOGLQJWKHLUEXVLQHVVDQGWHFKQLFDO
VNLOOVWKURXJKWUDLQLQJ
x 0DNLQJFRQQHFWLRQV+XEVKHOSHQWUHSUHQHXUVFRQQHFWWRFXVWRPHUVLQYHVWRUVPHQWRUVDQGSDUWQHUV
RXWVLGHWKHKXEWKDWZLOOKHOSWKHPH[SDQGWKHLUEXVLQHVVHV
x 6XSSRUWLQJVWDUWXSVXFFHVV+XEVZLOOEHMXGJHGRQWKHSHUIRUPDQFHRIVWDUWXSVERWKLQVLGHDQG
RXWVLGHWKHKXEFRPPXQLW\,QGLFDWRUVRIVXFFHVVLQFOXGHµJUDGXDWLQJ¶IURPWKHKXEDFTXLULQJFXVWRPHUV
PDNLQJPRQH\SD\LQJWD[HVFUHDWLQJMREVVFDOLQJJHQHUDWLQJVRFLDOLPSDFWDQGGLVUXSWLQJLQGXVWULHV
x (QFRXUDJLQJSHUVRQDORXWFRPHV+XEVFDQLQIOXHQFHWKHJURZWKDQGHYROXWLRQRIKXEPHPEHUVE\
RIIHULQJ WUDLQLQJ LQWURGXFLQJ WKHP WR QHZ LGHDV DQG NQRZOHGJH WKURXJK HYHQWV RU GLUHFWLQJ WKHP WR
H[WHUQDOUHVRXUFHVVXFKDVRQOLQHFRXUVHVWREXLOGWKHLUFDSDFLW\+XEVFDQDOVRHQFRXUDJHPHPEHUVWR
ZRUNIRUWKHPVHOYHVDQGEXLOGWKHVNLOOVDQGFDSDELOLWLHVRIDVSLULQJHQWUHSUHQHXUVVRWKH\FDQODXQFK
VXFFHVVIXOYHQWXUHV
x )RVWHULQJVWDWXVDQGSUHVWLJH$VLOOXVWUDWHGE\WKHSXEOLFSURILOHRIWKHL+XERQHRIWKHILUVWDQGPRVW
ZHOONQRZQKXEVLQ.HQ\DDZHOOUHJDUGHGKXEFDQHVWDEOLVKLWVFLW\RUFRXQWU\RIRULJLQDVDFHQWUHRI
WHFKHQWUHSUHQHXUVKLS%HORQJLQJWRVXFKDKXEFDQUDLVHWKHVWDWXVRIDVWDUWXSLQFUHDVLQJLWVFKDQFHV
RI DWWUDFWLQJ PHGLD DWWHQWLRQ DQG LQYHVWRU LQWHUHVW 7KLV LQ WXUQ H[SDQGV WKH SRRO RI RSSRUWXQLWLHV
DYDLODEOHWRDOOKXEPHPEHUV
'HVSLWHWKHXWLOLW\RIWKLVIUDPHZRUNPHDVXULQJKXELPSDFWLVFKDOOHQJLQJ$VVXPLQJWKDWWKHELJJHVWEHQHILWV
RIDKXEFRPHIURPLWVZRUNEXLOGLQJFRPPXQLW\DQGHFRV\VWHPVWKHLPSDFWRIDFWLYLWLHVVXFKDVWUDLQLQJ
DQGPHPEHUVKLSFDQEHGLIILFXOWWRPHDVXUH(VWDEOLVKLQJDGLUHFWFRQQHFWLRQEHWZHHQWKLVW\SHRIDFWLYLW\
2EH\VHNDUH(0HKWD.DQG&0DLWODQGµ'HILQLQJ6XFFHVVLQD'HYHORSLQJ&RXQWU\¶V,QQRYDWLRQ(FRV\VWHPWKHFDVHRI5ZDQGD¶,Q2017 IEEE Global Humanitarian Technology Conference (GHTC),
SS±
7HFKKXEVLQ$IULFD
DQG LWV LPSDFW LV WULFN\ EHFDXVH WKH UHODWLRQVKLS EHWZHHQ WKH WZR LV QRQOLQHDU $GGLWLRQDOO\ WKH
VRFLRHFRQRPLF LPSDFW RI WKHVH DFWLYLWLHV LV KDUG WR PHDVXUH DQG GLIILFXOW WR TXDQWLI\ GXH LQ SDUW WR WKH
DQHFGRWDOQDWXUHRIPXFKRIWKHHYLGHQFH:KHQPHWULFVDUHDOLJQHGZLWKFRUHSXUSRVHDQGDFWLYLWLHVWKH
PDWXULW\RIWKHKXE¶VVXUURXQGLQJHFRV\VWHPVKRXOGEHWDNHQLQWRDFFRXQW
)RU LQVWDQFH PHDVXUHV LQ QDVFHQW HFRV\VWHPV LQ FRXQWULHV LQFOXGLQJ 7KH *DPELD DQG /LEHULD VKRXOG
SUREDEO\ IRFXV RQ HFRV\VWHPEXLOGLQJ DFWLYLWLHV VXFK DV FRPPXQLW\ GHYHORSPHQW WUDLQLQJ DQG VNLOOV
GHYHORSPHQW+RZHYHULQFRXQWULHVZLWKUDSLGO\JURZLQJHFRV\VWHPVVXFKDV*KDQD.HQ\DDQG1LJHULD
PRUH HPSKDVLV FRXOG EH SODFHG RQ VWDUWXS RXWFRPHV *LYHQ WKH LQDGHTXDWH UHVRXUFHV LQ QDVFHQW
HFRV\VWHPV±IRUH[DPSOHDFFHVVWRILQDQFHPDUNHWVDQGPHQWRULQJ±VHOHFWLQJDVLQJOHSUREOHPWRVROYH
FDQEHFKDOOHQJLQJ
0HWULFVDVVRFLDWHGZLWKVWDUWXSFUHDWLRQDUHHDVLHUWRPHDVXUH%XWZKHQKXEVDWWHPSWWRXVHWUDGLWLRQDO
LQFXEDWLRQPHWULFVVXFKDVLQFUHDVHGVWDUWXSUHYHQXHWRLOOXVWUDWHWKHLUPHULWWKHUHVXOWVFDQEHDPLVPDWFK
EHWZHHQWKHDFWLYLW\DQGWKHHYDOXDWLRQPHWULF
7KLVDVVXPHVRIFRXUVHWKDWKXEVFROOHFWGDWD±ZKLFKPD\QRWEHWKHFDVH$WOHDVWWZRVWXGLHVKDYHIRXQG
WKDW WKH DEVHQFH RI SHUIRUPDQFH GDWD DQG WUDFNLQJ RI SRVWSURJUDPPH JUDGXDWHV KDPSHUHG HIIRUWV WR
HYDOXDWHDFFHOHUDWRUV)LQDOO\FRPSDULQJSHUIRUPDQFHPHDVXUHPHQWDFURVVKXEVLVFKDOOHQJLQJEHFDXVH
RIWKHIOXLGK\EULGVWUXFWXUHVDQGWKHHYROYLQJQDWXUHRIWKHHQYLURQPHQWVLQZKLFKWKH\RSHUDWH
1HYHUWKHOHVV KXEV WUDFN PDQ\ GLIIHUHQW PHWULFV LQFOXGLQJ RXWSXWV DQG WKH QXPEHU RI HYHQW SDUWLFLSDQWV
VXSSRUWHGVWDUWXSVDQGWUDLQLQJVHVVLRQV7KH\DOVRFROOHFWRWKHUUHOHYDQWGDWDVXFKDVSDUWLFLSDQWIHHGEDFN
IURP WUDLQLQJ DQG HYHQWV SURJUHVV PDGH RQ UHYHQXH JHQHUDWLRQ DQG SDUWQHUVKLS GHYHORSPHQW VWDUWXS
SHUIRUPDQFHDQGGLYHUVLW\VWDWLVWLFV%RQJR+LYHLQ=DPELDKDVVHWTXDUWHUO\WDUJHWVIRULWVVWDUWXSVZKLOH
L6SDFHLQ*KDQDWUDFNVWKHQXPEHURIZRPHQZKRDUHRUJDQL]LQJDQGWDNLQJSDUWLQLWVHYHQWV
8OWLPDWHO\ WKH FRUH FKDOOHQJH PD\ EH LQVXIILFLHQW LQVWLWXWLRQDO FDSDFLW\ +XE WHDPV SUREDEO\ KDYH VRPH
VHQVH RI ZKDW DQG KRZ WR PHDVXUH EXW WKH\ PD\ QRW KDYH WKH UHVRXUFHV WR GR VR $V D KXE PDQDJHU
LQWHUYLHZHGE\WKH,QVWLWXWHIRU'HYHORSPHQW6WXGLHVDQG5HVXOWVIRU'HYHORSPHQWH[SODLQHGµ,NQRZRXU
ZHEVLWHLVDGLVDVWHUEXW,KDYHQ¶WKDGWKHUHVRXUFHVRUWKHWLPHWRIL[LW,NQRZ,QHHGWRWHOOWKHDZHVRPH
VWRULHVIURPRXUZRUNRQWKHJURXQGEXW,¶YHKDGWRIRFXVRQDFWXDOO\GHOLYHULQJWKDWZRUNILUVW¶
&$6(678'<:KHQKXEVIDLO±WKH+\SHUFXEHVWRU\
$OWKRXJK LW LV FULWLFDO WR H[DPLQH KRZ KXEV FUHDWH YDOXH DQG PHDVXUH VXFFHVV LW LV HTXDOO\ LPSRUWDQW WR
H[SORUH WKH FKDOOHQJHV WKDW KXEV IDFH DQG WKH LQVWDQFHV LQ ZKLFK WKH\ IDLO 7KH +\SHUFXEH VWRU\ KHOSV
LOOXVWUDWHWKHOLIHF\FOHRIDW\SLFDOKXE±KRZLWLVIRXQGHGJURZVWDFNOHVSUREOHPVDQGLQVRPHFDVHV
FORVHVLWVGRRUV
2ULJLQV
+\SHUFXEHZDVODXQFKHGLQ1RYHPEHUDV+DUDUH¶VVHFRQGWHFKKXE7KHPDQDJHURI,7)L[DORFDO
DUP RI DQ LQWHUQDWLRQDO WHFK VXSSRUW FRPSDQ\ WKH IRXQGHU RI =LP&RQYR D ORFDO PHGLD VWDUWXS D
FURZGIXQGLQJH[SHUWDQGWKUHHRWKHUFROODERUDWRUVMRLQHGIRUFHVWRUHVSRQGWRDFDOOIRUSURSRVDOVWRODXQFK
DVRFLDOO\RULHQWHGKXE$FRQVRUWLXPRIWKUHHLQWHUQDWLRQDORUJDQL]DWLRQV+LYRV,QGLJR7UXVWDQGWKH8QLWHG
6WDWHV(PEDVV\LQ+DUDUHLVVXHGDFDOOIRUIXQGLQJ
$IWHUDFRPSHWLWLYHSURFHVVWKHILQDOµ+\SHUFXEH7HFKQRORJ\7UXVW¶WHDPFRPSRVHGRI0XQ\D&KLXUD1LJHO
0XJDPX1LNNL.HUVKDZ5LQHVK'HVDLDQG7DSV0XURYHZRQWKHELGLQ6HSWHPEHU7KH\ZHUHLQLWLDOO\
Ibid
6DPEXOLDQG:KLWWopcit
Ibid
'H%HHUHWDOop.cit
Ibid
6DPEXOLDQG:KLWWop. cit
7HFKKXEVLQ$IULFD
DZDUGHG¼E\,QGLJR7UXVWDQG+LYRVDQGIURPWKH8QLWHG6WDWHV(PEDVV\+\SHUFXEH
DOVRUHFHLYHGIURPWKH8QLWHG1DWLRQV'HYHORSPHQW3URJUDPPHDWDODWHUGDWH
$FWLYLWLHV
+\SHUFXEH¶V PLVVLRQ DV GHILQHG E\ WKH IRXQGLQJ WHDP ZDV WR KHOS VWUXFWXUH WKH WHFK HQWUHSUHQHXUVKLS
HFRV\VWHPLQ+DUDUHDQG=LPEDEZH7KLVPLVVLRQZDVURRWHGLQDFRPPXQLW\ILUVWHWKRVZKLFKSULRULWL]HG
WKH QHHGV RI NH\ VWDNHKROGHUV ± GHYHORSHUV HQWUHSUHQHXUV EXVLQHVVHV JRYHUQPHQW LQWHUQDWLRQDO
GHYHORSPHQWRUJDQL]DWLRQVHGXFDWLRQDOLQVWLWXWLRQVDQGVRFLDOPHGLDRXWOHWV±DERYHDOOHOVH
,QLWLDOO\+\SHUFXEHIRFXVHGRQKRVWLQJODUJHHYHQWVVXFKDV6WDUWXS:HHNHQGDQG7('[+DUDUHDVSDUW
RILWVHFRV\VWHPEXLOGLQJPDQGDWH7KHKXEDOVRRIIHUHGWUDLQLQJWR\RXQJSHRSOHZKRZHUHLQWHUHVWHGLQ
OHDUQLQJFRGLQJ$VDWULDO+\SHUFXEHRIIHUHGIUHHFRZRUNLQJVHUYLFHVWRGHYHORSHUVDQGHQWUHSUHQHXUVIRU
WKH ILUVW \HDU 1HYHUWKHOHVV PRVW YLVLWRUV XVHG WKH VSDFH LQWHUPLWWHQWO\ QR PRUH WKDQ ± PHPEHUV
RFFXSLHGLWUHJXODUO\7KHVSDFHDOVRIDLOHGWRDWWUDFWH[SHULHQFHGHQWUHSUHQHXUVDQGGHYHORSHUVZKRFRXOG
DIIRUGLQWHUQHWDFFHVVDWKRPH
&KDOOHQJHV
2YHU WLPH +\SHUFXEH IDFHG FULWLFLVP DERXW LWV XVHIXOQHVV 6RPH SHRSOH VDLG WKH KXE LQDELOLW\ WR DWWUDFW
VHDVRQHGHQWUHSUHQHXUVDQGGHYHORSHUVOLPLWHGLWVYDOXHDVDVSLULQJSURJUDPPHUVDQGIRXQGHUVZRXOGOHDUQ
EHVWIURPWKRVHZLWKPRUHH[SHULHQFH&ULWLFVDOVRKLJKOLJKWHGWKHOLPLWHGDFFHVVWRSRWHQWLDOFXVWRPHUVDQG
SDUWQHUVDYDLODEOHWKURXJKWKHKXE
2WKHUVDUJXHGWKDWWKHIXQGDPHQWDOSUREOHPVIDFLQJ=LPEDEZHDQHQWUHSUHQHXUVZHUHEH\RQGWKHFRQWURORI
+\SHUFXEHDQGLQDGHTXDWHO\XQGHUVWRRGE\WKHIRXQGHUVEHFDXVHPRVWZHUHQRWHQWUHSUHQHXUV)LQDOO\
PDQ\FULWLFL]HGWKHKLJKDPRXQWRIGRQRUIXQGLQJVHFXUHGE\WKHIRXQGLQJWHDPWRODXQFKWKHKXEVD\LQJ
+\SHUFXEH PLJKW VWUXJJOH WR DFKLHYH ILQDQFLDO VXVWDLQDELOLW\ DQG WKDW HFRV\VWHP GHYHORSPHQW VKRXOG EH
GULYHQE\ORFDOWHFKHQWUHSUHQHXUV
7KH+\SHUFXEHWHDPQRWHGWKHFULWLFLVPVEXWLQVLVWHGWKDWWKHHFRV\VWHPZDVKHDGLQJLQWKHULJKWGLUHFWLRQ
%XWWKH\DOVRUHFRJQL]HGWKHQHHGWRUHILQHWKHLUDSSURDFK7KHWHDPGHFLGHGWRIRFXVRQRIIHULQJVWUXFWXUHG
VXSSRUWWRHQWUHSUHQHXUVJHDUHGDWLPSURYLQJWKHLUSHUIRUPDQFH7KLVGHFLVLRQZDVLQIRUPHGE\DGHVLUHWR
FUHDWHDPRGHOWKDWZRXOGJHQHUDWHUHYHQXHEH\RQGGRQRUVXSSRUW,WZDVDOVRLPSRUWDQWWRDFNQRZOHGJH
WKDWZKLOHWKHSLORW\HDUFRQILUPHGGHPDQGIRUWKHKXEWKHHFRV\VWHPZDVQRW\HWPDWXUHHQRXJKWRPDNH
WUDGLWLRQDO EXVLQHVV PRGHOV YLDEOH 0HPEHUV KDG WKH FKRLFH RI EX\LQJ j OD FDUWH FRZRUNLQJ DFFHVV RU
SDUWLFLSDWLQJLQDVWUXFWXUHGSURJUDPPHZLWKPLOHVWRQHVDQGPHQWRULQJ7HDPVDQGFRPSDQLHVFRXOGDOVR
UHQWRIILFHVSDFH
)DLOXUHDQGOHVVRQVOHDUQHG
+\EHUFXEHFORVHGLWVGRRUVLQ'HFHPEHUDIWHULWVGRQRUIXQGLQJUDQRXW7KHIRXQGHUVZHUHXQDEOHWR
UDLVHQHZIXQGVDIWHUQHDUO\D\HDURIVHDUFKLQJDQGXOWLPDWHO\GHWHUPLQHGWKDWWKH\FRXOGQRWPDNHWKH
VSDFHILQDQFLDOO\YLDEOH'XULQJLWVWZR\HDUVRIRSHUDWLRQ+\SHUFXEHKRVWHGHYHQWVUHFHLYHG
YLVLWRUVDQGHQJDJHGVWDUWXSVDQGDFWLYHPHPEHUV
2QHIRXQGHUVDLGDIWHUWKHVKXWGRZQWKDWµWKHWUXWKLVWKDW+\SHUFXEHKDVEHHQIDFLQJFKDOOHQJHVIRUTXLWH
VRPHWLPHLQFOXGLQJHQVXULQJZHKDGWKHULJKWWHDPWRH[HFXWHRXUPDQGDWHXQGHUHVWLPDWLQJWKHWXUEXOHQW
=LPEDEZH HFRQRP\ IDLOXUH LQ LPSOHPHQWLQJ DGHTXDWH SROLFLHV DQG SURFHGXUHV WR VXSSRUW RXU JURZWK
)ULHGHULFL1Innovation Hubs in Africa: Assemblers of Technology Entrepreneurs8QLYHUVLW\RI2[IRUGSS±.DEZH]D/60DUFKµ$XGLWRIGHIXQFW+\SHUFXEHD=LPEDEZHDQWHFK
KXEH[SRVHVDSSDUHQWDEXVHRIIXQGV¶
Ibid±
Ibid
Ibid
Ibid
Ibid±
.DEZH]Dop. cit
7HFKKXEVLQ$IULFD
VLJQLILFDQWGHOD\VLQWKHOLWWOHLQFRPHZHZHUHUHFHLYLQJWRFRYHURSHUDWLRQDOH[SHQVHVDQGDGDSWLQJRXU
EXVLQHVVPRGHOTXLFNO\HQRXJKWRUHIOHFWWKHUHDOLWLHVRIWKH=LPEDEZHPDUNHWSODFH¶
,Q'HFHPEHUWKHWHDPEHKLQG+\SHUFXEHVRXJKWWRUHYLYHWKHKXEE\KLULQJDµUHFRYHU\PDQDJHU¶
7KHUHFRYHU\PDQDJHUFRQGXFWHGDWKUHHPRQWKDXGLWLQWKDWUHYHDOHGILQDQFLDOLUUHJXODULWLHVVXFKDV
XQXVXDOO\ODUJHH[SHQGLWXUHVIRUFHUWDLQSHUVRQQHODQLQDSSURSULDWHZLWKGUDZDORIGRQRUIXQGVE\DIRXQGLQJ
WHDPPHPEHUDQGGLVVHQWLRQDPRQJWKHIRXQGHUVWKDWFXOPLQDWHGLQWKHUHVLJQDWLRQRIWZRPHPEHUV
,Q-DQXDU\WKUHHRIWKHIRXQGLQJPHPEHUV±&KLXUD.HUVKDZDQG'HVDL±SDUWLFLSDWHGLQDSXEOLF
TXHVWLRQDQGDQVZHUVHVVLRQKRVWHGE\WKH8QLWHG6WDWHV(PEDVV\WRVKDUHWKHLUSHUVSHFWLYHVDQGOHVVRQV
OHDUQHGIURPWKH+\SHUFXEHH[SHULHQFH.H\WDNHDZD\VLQFOXGH
x 3URWRW\SHILUVW.+\SHUFXEH¶VIRXQGLQJWHDPKDGDEURDGDPELWLRXVYLVLRQDWWKHRXWVHWLQIRUPHGE\
UREXVWUHVHDUFKRQWKHRSHUDWLQJPRGHOVRIKXEVLQRWKHUFRXQWULHV%XWLWODFNHGDQDOWHUQDWLYHFRXUVH
RIDFWLRQLISODQVFROODSVHGDQGIDLOHGWRVXIILFLHQWO\ORFDOL]HWKHOHVVRQVOHDUQHGIURPRWKHUKXEV7KH
WKUHHFRIRXQGHUVUHFRPPHQGHGWHVWLQJWKHKXEPRGHO±FODULI\LQJWKHGLUHFWLRQYDOLGDWLQJDVVXPSWLRQV
DQGJHQHUDWLQJVRPHHDUO\UHVXOWV±EHIRUHVHHNLQJIXQGLQJ
x +DYHDFRPPLWWHGERDUGDQGPDQDJHPHQWWHDPZLWKFRPSOHPHQWDU\VNLOOV+\SHUFXEHKDGDODUJH
IRXQGLQJWHDPZLWKIRXURIWKHVL[IRXQGHUVKROGLQJIXOOWLPHMREVOHDGLQJRWKHURUJDQL]DWLRQV0RVWOLNHO\
GXHWRWKHVHFRQVWUDLQWVWKHERDUGRQO\PHWTXDUWHUO\UDWKHUWKDQWKHPRQWKO\PHHWLQJVZLWKUHJXODU
FKHFNLQVWKDWWKH\ZRXOGUHFRPPHQGWRRWKHUV7KH\DOVRKLJKOLJKWHGWKHQHHGIRUWKRVHLQOHDGHUVKLS
SRVLWLRQV WR KDYH FRPSOHPHQWDU\ VNLOOV WKDW EHQHILW WKH KXE DV ZHOO DV D GHHS DSSUHFLDWLRQ RI WKH
LPSRUWDQFH RI PDQDJLQJ WKHLU ILGXFLDU\ UHVSRQVLELOLWLHV DQG DQ\ SRWHQWLDO FRQIOLFWV RI LQWHUHVW
,QVXPKXEIRXQGHUVVKRXOGFUHDWHDERDUGDQGGHYHORSLWVJRYHUQDQFHDQGDFFRXQWDELOLW\SUDFWLFHV
DERYHDOOHOVH
x %HIRUZDUGWKLQNLQJDERXWUHYHQXHJHQHUDWLRQDQGFDXWLRXVDERXWFRVWV+\SHUFXEHKDGQRVRXUFH
RILQFRPHEH\RQGGRQRUIXQGLQJDQGHIIRUWVWRFUHDWHSDUWQHUVKLSVDQGVRXUFHDGGLWLRQDOIXQGVZHUH
XQVXFFHVVIXO7KHKXEVKRXOGKDYHFKDUJHGIRUPHPEHUVKLSVRRQHUHVSHFLDOO\JLYHQWKDWLWVPRQWKO\
RSHUDWLQJFRVWVZHUH+\SHUFXEHRIIHUHGIUHHPHPEHUVKLSLQLWVILUVW\HDU7KHWHDPSLORWHGD
SDLGPHPEHUVKLSVWUXFWXUHIURP-DQXDU\DQGRIILFLDOO\LQWURGXFHGSDLGPHPEHUVKLSVD\HDUODWHU
7KLVZDVWRRODWHWRVDYHWKHKXEKRZHYHU+\SHUFXEHDOVRRYHUHVWLPDWHGWKHGHPDQGIRUVSDFHDQG
XQGHUHVWLPDWHGWKHFRVWRIUXQQLQJLW0RVWRIWKHKXE¶VFRVWVVWHPPHGIURPUHQWLQJDVSDFHWKDWZDV
WRRODUJHIRULWVQHHGVEHFDXVHLWZDVµWU\LQJWREHDOOWKLQJVWRDOOSHRSOH¶7KHWHDPDOVRLQYHVWHGLQDQ
XQQHFHVVDU\UHQRYDWLRQWKDWKDGOLWWOHLPSDFWRQLWVFRPPXQLW\PHPEHUV
x ,QYHVWLQDFWLYHILQDQFLDODQGKXPDQUHVRXUFHVPDQDJHPHQW7KH+\SHUFXEHWHDPDGYLVHVIRXQGLQJ
WHDPVWRGHYHORSEXVLQHVVSODQVWKDWWKH\UHYLVLWUHJXODUO\DQGWRKLUHILQDQFLDOPDQDJHPHQWUHVRXUFHV
LI WKH\ GR QRW H[LVW LQWHUQDOO\ $SSURSULDWH RUJDQL]DWLRQDO SHUIRUPDQFH PRQLWRULQJ DQG SHUVRQQHO
PDQDJHPHQWSURFHGXUHVPXVWEHLQSODFH
x 5HFRJQL]HPLVWDNHV DQG FRUUHFWFRXUVH 7KH WKUHH +\SHUFXEH FRIRXQGHUV IHOW WKDW WKH\ ZHUH WRR
VORZWRDFNQRZOHGJHWKHFKDOOHQJHV:KHQWKH\ZHUHIRUFHGWRILJKWIRUWKHLUVXUYLYDOWKH\IRFXVHGRQ
VWD\LQJDIORDWLQVWHDGRIGRLQJZKDWZDVEHVWIRUWKHFRPPXQLW\
-DFNVRQ7'HFHPEHUµ=LPEDEZHDQKXE+\SHUFXEHWRFORVHGXHWRODFNRIIXQGLQJ¶
8QLWHG6WDWHV(PEDVV\LQ=LPEDEZHop. cit
Ibid
7HFKKXEVLQ$IULFD
&.-DSKHWKIRXQGHURI,QQRYDWLRQ9LOODJH.DPSDOD3KRWRFRXUWHV\RI,QQRYDWLRQ9LOODJH
7HFKKXEVLQ$IULFD
,QWHUYLHZ
,QQRYDWLRQ9LOODJH&DSLWDODQGH[SHUWLVHIRU8JDQGDQVWDUWXSV
7HFK VWDUWXSV RIWHQ VWUXJJOH WR VWDQG RXW VXUYLYH DQG VXFFHHG LQ 8JDQGD ZKLFK KDV WKH \RXQJHVW
SRSXODWLRQLQWKHZRUOGDQGDVHYHUH\RXWKXQHPSOR\PHQWUDWH2QHVROXWLRQIRUPDQ\\RXQJHQWUHSUHQHXUV
LV WR FOXVWHU WRJHWKHU DQG MRLQ WHFK KXEV VXFK DV WKH ,QQRYDWLRQ 9LOODJH .DPSDOD WR EHFRPH SDUW RI D
FRPPXQLW\ZKHUHLGHDVDUHHQFRXUDJHGDQGFXOWLYDWHG
&.-DSKHWKZKRIRXQGHG,QQRYDWLRQ9LOODJHWRJLYHQHZ8JDQGDQYHQWXUHVJUHDWHURGGVRIVXUYLYLQJDQG
WKULYLQJGHVFULEHVWKHKXEDVDµODXQFKSDGIRUHQWUHSUHQHXUVVROYLQJVRPHRI8JDQGD
VELJJHVWFKDOOHQJHV¶
µ:HDUHDWWKHKHDUWRIDQLQWHUFRQQHFWHGQHWZRUNRILQYHVWRUVSXEOLFSULYDWHGHYHORSPHQWHQWUHSUHQHXUV
DQGDFDGHPLDZRUNLQJWRGHHSHQWKHDSSOLFDWLRQRIWHFKQRORJ\LQVROYLQJFKDOOHQJHVRUGULYLQJVRFLDOEHQHILW¶
KHVDLG
8JDQGDZDVUDQNHGDVWKHZRUOG¶VPRVWHQWUHSUHQHXULDOFRXQWU\LQDVWXG\E\$SSURYHG,QGH[:LWKD
SRSXODWLRQRIPLOOLRQ±DQGDERXWRI8JDQGDQVEHORZWKHDJHRI±ZKDWPDQ\SHRSOHVHHDVD
\RXWKSUREOHPLQWKH(DVW$IULFDQFRXQWU\LVDFWXDOO\DQRSSRUWXQLW\WRµSXWWKH\RXQJHVWSRSXODWLRQLQWKH
ZRUOGWRZRUN¶-DSKHWKVD\V
µ2YHUWKHODVW\HDUVZHKDYHPRVWO\VHHQXQVXVWDLQDEOHDSSURDFKHVOLNHRQHRIIZRUNVKRSVFRQIHUHQFHV
DQGJUDQWVEXWDOVRLQQRYDWLRQFRPSHWLWLRQVWKDWVHOHFWWKHWRSWKUHHIURPDSRWHQWLDOVXEPLVVLRQV¶KH
H[SODLQHG µ:H EXLOW WKH ,QQRYDWLRQ 9LOODJH WR EH D GHVWLQDWLRQ IRU WKH ZKR GRQ¶W QRUPDOO\ZLQ VXFK
FRPSHWLWLRQV¶
8JDQGD¶V HFRV\VWHP ODFNV DFFHVV WR FDSLWDO DQG LQYHVWRUV DV ZHOO DV PDUNHW PDWXULW\ DQG H[SHULHQFH
KHOSLQJHQWUHSUHQHXUVVWDUWDQGVFDOH$VDUHVXOWXSWRRIQHZYHQWXUHVLQWKH(DVW$IULFDQFRXQWU\IDLO
LQWKHLUILUVW\HDU%XWWKDWPD\EHFKDQJLQJ
,QQRYDWLRQ9LOODJHLVRQHRIWHFKKXEVLQ8JDQGDZKLFKKDVEHQHILWHGDVWHFKQRORJ\JLDQWVLQFOXGLQJ
)DFHERRN$OLEDEDDQG*RRJOHWXUQDFORVHUH\HWR$IULFD$FURVVWKHFRQWLQHQWWKHQXPEHURIWHFKKXEV
VXUJHGPRUHWKDQEHWZHHQDQGDQGQHZVSDFHVDUHOLNHO\WRVSULQJXSLQ8JDQGD
-DSKHWK¶VEUDLQFKLOGIRFXVHVRQHGXFDWLRQWHFKFOLPDWHPHGLDILQWHFKDQGDJULEXVLQHVVHV7KHFRPPXQLW\
VSDFHLVKRPHWRORFDOUHJLRQDODQGJOREDOVWDUWXSVWRWDOOLQJLQQRYDWRUV±RIZKRPDUH\RXQJ
ZRPHQKHVD\V
,WVVHUYLFHSRUWIROLRLVNQRZQDV$&(±DQDFURQ\PIRUDFFHOHUDWLRQFDSLWDODQGH[SHUWLVH
µ$FFHOHUDWLRQIRUVWDUWXSVDQGIRUSDUWQHUVFDSLWDOWKURXJKDQDQJHOQHWZRUNDQGDUHFHQWO\IRUPHG)XQG
\HWWREHRSHUDWLRQDODQGLQQRYDWLRQH[SHUWLVHZKHUHZHEXLOGFXVWRPVROXWLRQVIRUSDUWQHUVIURPERWKWKH
SXEOLFDQGSULYDWHVHFWRU¶KHH[SODLQHGµ%XWJLYHQWKHHDUO\HFRV\VWHP\RXFDQ¶WMXVWEXLOGDQLQFXEDWRURU
DFFHOHUDWH6RRYHUWKHODVWWKUHH\HDUVZHKDYHEHHQEXLOGLQJDQLQQRYDWLRQHFRV\VWHPWRVXSSRUWRXUPRVW
SURPLVLQJHQWUHSUHQHXUV¶
,QYHVWPHQWWDUJHWV$IULFDQVWDUWXSVQRWWHFKKXEV
7RWDOIXQGLQJJLYHQWR$IULFDQVWDUWXSVMXPSHGDOPRVWIRXUIROGODVW\HDUWRDUHFRUGPLOOLRQDQGWKH
QXPEHURIIXQGLQJGHDOVPRUHWKDQGRXEOHGWRDFFRUGLQJWR:HH7UDFNHU¶VYHQWXUHLQYHVWPHQW
UHSRUW(TXDOO\HQFRXUDJLQJLVWKDWPRUHWHFKVWDUWXSVRQWKHFRQWLQHQWDUHJUDEELQJELJWLFNHWILQDQFLQJ
H[FHHGLQJPLOOLRQ
6WLOOFDSLWDOUHPDLQVWKHSULPDU\REVWDFOHIRUPRVW8JDQGDQVWDUWXSV±DVZHOODV,QQRYDWLRQ9LOODJHDQG
RWKHUWHFKKXEVLQWKHFRXQWU\,QYHVWRUVWHQGWRWDUJHWHQWUHSUHQHXUVUDWKHUWKDQWHFKKXEVPDQ\RIZKLFK
UHPDLQVPDOODQGEDUHO\PDNHHQGVPHHW2QHRIWKH,QQRYDWLRQ9LOODJH¶VELJJHVWFKDOOHQJHVLQWHUPVRI
HQVXULQJLWVRZQVXVWDLQDELOLW\LVDWWUDFWLQJLQYHVWPHQW±HYHQWKRXJKLWVDQQXDOUHYHQXHMXPSHG
µ:HKDYHVXFFHVVIXOO\LQQRYDWHGDURXQGZKDWDW\SLFDOLQFXEDWRUGRHVEXWWKHPDUNHWLVVWLOODWWDFKHGWR
ZKDW D WUDGLWLRQDO LQFXEDWRU GRHV¶ -DSKHWK H[SODLQHG µ:H DOVR VWUXJJOH WR EXLOG DZDUHQHVV ZLWK WKH
PDUNHWSODFH7KLVLVDILUVWWLPHIRUSRWHQWLDOSDUWQHUVIURPSXEOLFSULYDWHDQGDFDGHPLDVRWKHFXUYHLVWRR
7HFKKXEVLQ$IULFD
ORQJWDNHVWLPHDQGLVH[SHQVLYHIRUXV%XWZHKDYHVXFFHVVIXOO\PDQDJHGWREXLOGZKDWFDQSRWHQWLDOO\
EHFRPHRQHRI$IULFD
VILUVWVHOIVXVWDLQLQJKXEPRGHOV¶
7RGD\,QQRYDWLRQ9LOODJHJHQHUDWHVPRVWRILWVUHYHQXH±±IURPWKHLQQRYDWLRQVHUYLFHVLWSURYLGHV
7KH UHPDLQGHU LV GHULYHG HTXDOO\ IURP WKUHH RWKHU VHUYLFHV SURJUDPPH GHYHORSPHQW DQG PDQDJHPHQW
VWDUWXSDQG60(EXVLQHVVGHYHORSPHQWDQGVSDFHDQGHYHQWV
7HFKKXEVLQ$IULFD
&+$37(5 %86,1(6602'(/6
:(67$)5,&$17(&++8%6
7KHQXPEHURIDFWLYHWHFKKXEVDFURVV$IULFDLVJURZLQJVWHDGLO\ULVLQJIURPLQWRLQ
ZLWK PRUH GXH WR ODXQFK 7HFK KXEV DQG LQQRYDWLRQ VSDFHV DUH DW WKH KHDUW RI $IULFD¶V
WHFKQRORJLFDO DQG VWDUWXS UHYROXWLRQ EXW WKH\ IDFH VHULRXV GLIILFXOWLHV PRQHWL]LQJ DQG EHFRPLQJ
VXVWDLQDEOH
7KLV FKDSWHU EDVHG RQ LQWHUYLHZV ZLWK WHFK KXEV LQ :HVW $IULFD VKRZV KRZ WKHVH KXEV KDYH
GHVLJQHG WKHLU EXVLQHVV PRGHOV DQG WKH VWUXJJOHV WKH\ IDFH WR EHFRPH ILQDQFLDOO\ VXVWDLQDEOH 7KH
VWXG\ SURYLGHV RWKHU KXEV DQG HFRV\VWHP OHDGHUV ZLWK LQVLJKWV RQ KRZ WR EHWWHU GHVLJQ WKHLU RZQ
EXVLQHVVPRGHOVDQGRYHUFRPHFKDOOHQJHVWRILQDQFLDOVXVWDLQDELOLW\,WDOVRRIIHUVLQIRUPDWLRQRQKRZ
WHFKKXEVIXQFWLRQLQ:HVW$IULFDDQGVXJJHVWVZD\VWRDVVLVWWKHP
7KHSDWWHUQVRIILYHWHFKKXEEXVLQHVVPRGHOVKDYHEHHQGHVLJQHGEDVHGRQWKHFROOHFWHGGDWD7KHVH
SDWWHUQV FRXOG VHUYH DV JRRG UHIHUHQFHV IRU D KXE WR XQGHUVWDQG KRZ WR VWDUW RU KRZ WR UHWKLQN LWV
H[LVWLQJ EXVLQHVV PRGHO 7KH\ DOVR KHOS WHFK KXE SDUWQHUV XQGHUVWDQG DQG FDWHJRUL]H WKH GLIIHUHQW
SDWWHUQV
7DEOH 7HFKKXEVWKDWZHUHLQWHUYLHZHG
2UJDQL]DWLRQ &RXQWU\ 2UJDQL]DWLRQ &RXQWU\
)RXQGHUVKXE 1LJHULD ,QQRKXE *KDQD
79&/DEV 1LJHULD 6WDUWXS,QFXEDWRU*DPELD *DPELD
&UHDWLYH,QQRYDWLRQKXE 1LJHULD ,QQRYD/DE %LVVDX*XLQHD
N/DE 5ZDQGD -$*DERQ *DERQ
&,30(1 1LJHU $FWLY6SDFHV &DPHURRQ
/D)DEULTXH %XUNLQD)DVR ,QJHQLRXV&LW\ 'HPRFUDWLF
5HS&RQJR
&RQFUHH 6HQHJDO 0(67 *KDQD
(WUL/DEV 7RJR $NXUH7HFK+XE)87$ 1LJHULD
+DUPRQ\,QQRYDWLRQ+XE 1LJHULD ,PSDFW'DNDU 6HQHJDO
([SRQHQWLDO+XE 1LJHULD -RNNRODEV'DNDU 6HQHJDO
(QRYDWH/DE 1LJHULD &DSLWDO6TXDUH:RUNVSDFH 1LJHULD
6ROXWLRQV/WG
&RGH6SDFH 1LJHULD 0DOKXE 1LJHULD
:KDWLVDWHFKKXEEXVLQHVVPRGHO"
$ EXVLQHVV PRGHO LV GHILQHG DV WKH UDWLRQDOH EHKLQG KRZ RUJDQL]DWLRQV FUHDWH GHOLYHU DQG FDSWXUH
YDOXH 7KLV GHILQLWLRQ DSSOLHV WR D WHFK KXE DV DQ RUJDQL]DWLRQ %XVLQHVV PRGHOV DUH QRW MXVW DERXW
JHQHUDWLQJ UHYHQXH IRU KXEV ± WKH\ DOVR DUH HVVHQWLDO IRU WKHLU VXVWDLQDELOLW\ 7KH LQWHUYLHZV DQG
LQIRUPDWLRQFROOHFWHGIURPWKHKXEVUHYHDOKRZWKH\DUHVWUXFWXUHGWR