Lushoto Business and Technology Incubator

INTRODUCTION/BACKGROUND

Lushoto Business/Technology Incubator (LBTI) has been a cluster member of EEDI-Lushoto since its foundation. The Incubator center is managed by two staff, the manager, Mr John Nshunju, and the field assistant, Mr. Eustardius Rwegoshora. The latter was the representative of the Incubator since its foundation and continues to represent the Centre in all the activities concerning the center in EEDI matters.

At the time EEDI was forming, the Mr. Nshunju was working for Microenterprise Promotion Programme (MEPP) under ELCT-NED Lushoto Tanzania. He was later elected to be the local EEDI facilitator but also counted as cluster member through MEPP. By joining the Incubator the manager assumed new membership of EEDI through LBTI and continues to be EEDI local facilitator.

LBTI STATUS

LBTI works under the College of Engineering (CoET) of University of Dar es Salaam and is managed by the section of Technology Development and Transfer Center (TDTC). The center is a Government-owned entity and is part of its strategy to address small and medium enterprise development (SMED) in the country. The Tanzanian Ministry of Industry, Trade and Marketing developed the SMED policy in April 2003 and this policy, among other things, envisaged the development of business/technology incubators as means to facilitate enterprise start up and growth.

LBTI is a centre to test and evaluate some of the incubator models in a pilot phase before implementing the full National Business  Incubator Programe (NBIP). Similar centers are available in Kibaha, Coastal Region, and Morogoro Town.

Vision of the National Business Incubator Plan
  • The vision of the proposed NBIP is to establish a network of business incubators which by 2012 is a fully functional dynamic business development process reducing the failure rate of early stage enterprises and speeding the grow of enterprises that are the potential to become substantial generators of employment and wealth and thereby contribute to poverty reduction.
Donors
  • Currently the main donors/supporters of the incubation project are the Tanzania Gutsby Trust (TGT), the Carnegie Foundation, and the Government of Tanzania.
Types of incubators
  • A business incubator is the center that provides entrepreneurs with the expertise, business support networks, and the tools they need to make their venture successful and thus catalyze the process of starting and growing enterprises. A wide range of incubators exist, categorized depending on the services they deliver:
  • Full service business incubator (incubator with walls): All business support services provided for the target group are assembled in one location
  • Sheltered estate services: Managed work space with estate services only (water, power, drainage, waste disposal)
  • Incubator without walls: Business support services provided for enterprises occupying their own premises in the common locality
  • A virtual incubator: Business support services are provided to the clients irrespective of their location. (Note:incubator without walls and virtual incubator)

    LBTI, as per the type of the clients admitted can be termed both
LBTI Activities
LBTI launched its activities in Lushoto in 2003. The initial job was to do the center business plan, establish the incubator, identify and admit the clients/tenants, assist them to prepare business plans, provide entrepreneurial traing, and food processing. The current job is to link the clients with different service providers so as to provide Business Development Services as per the prepared business plans.

LBTI Target Groups
The target clients of LBTI are groups that add value to farmers crops hence food processing groups.  Women in the incubation are given first priority, though they have to conform to entrance/exit criteria which has a sequence of evaluation processes from the application, admission, incubation, graduation and after service care.
doc LBTI Clients

LBTI MEMBERSHIP WITH EEDI

LBTI is a founding member of EEDI. LBTI through its management has entered into collaboration with EcoVentures International through the signed MOU with the University of Dar es Salaam College of Engineering. EcoVentures, through EEDI is regarded as service provider from which some clients of LBTI can acquire BDS. LBTI has benefitted the following through EcoVentures and EEDI:
  • LBTI members have attended EEDI/EcoVentures organized capacity building workshop in Lushoto March-May 2005 and Dar es Salaam 24-28 April 2006
  • Materials support in terms of Environmental Enterprise literature, books, reading materials, saving and credit kits for trainings, etc.
  • Help to solicit funds presented by member organization of EEDI Lushoto
EEDI and EcoVentures also benefit from LBTI as follows
  • LBTI is the centre for coordination unit of EEDI activities. Services delivered are paid for a cost recovery rate contributing to the day to running of LBTI office (it is the role of the incubator to charge the clients for the service they get in the same manner for sustainability of the incubator in the future).

CONCLUSION

LBTI is pilot project of which every step is learning stage. To join hands with other organizations, local and international, provides room to increase synergism and hence have a wide range of ability to serve the clients. This collaboration is highly commended and the partners are urged to increase resources to realize both objectives of LBTI and EEDI.

Prepared by John Nshunju, LBTI Manager
June 2006

Contact information:

John Nshunju
+255 784-592-242
PO Box 73758
Dar es Salaam
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For more detailed information on this program, please visit the homepage of the UDEC.