Factors affecting technological innovation commercialisation support success in SMMEs in South Africa

Abstract

This study outlines the factors affecting technological innovation commercialisation support success of technological innovations for the survival of Small Micro and Medium Enterprises (SMMEs). Technological innovation support, especially financial assistance, was found to be essential and venture capital support was considered to be critical for pre-commercialisation and commercialisation of technological innovations. The main research objective was to explore the factors that influence accessing of support at the early-to-mid stage for commercialisation success. The data was collected through a qualitative research methodology by interviewing SMMEs involved in the development and commercialisation of technological innovation and professionals involved in supporting SMMEs in the technological innovations sector. The key findings include considering previous funding support, early engagement of the stakeholders, involvement of industrial and businesspeople in the management team and its effect on reputation. As well as the critical influence of technical validation reports including marketing research. The support structure of the family and friends especially at the business infancy. Other important factors that were found to influence competitive advantage are market size, flexibility and scalability of the technological innovation. Another key finding was that innovation management is essentially part of project management. A comprehensive business plan should package market assessment, intellectual property (IP) commercialisation plan and business model intended to be adopted. Revenue generation was found to be a key contributor to stimulating support from venture capital firms. It was recommended that a quantitative study with only SMMEs who previously successfully attracted venture capital funding which focuses on approaches SMMEs can adopt to increase the likelihood of receiving venture capital support. Limitations of this study include the participation of professionals and/or SMMEs who have not applied or have insight into venture capital and thus are not able to provide full participation, especially towards venture capital support.