DINKO BOIKANYO | Technopreneurship can boost SA's economy, reduce unemployment

SA stands at a pivotal moment in its economic journey, with a pressing need to address high unemployment rates and stimulate economic growth.

In this context, technopreneurship – a powerful blend of technology and entrepreneurship – emerges as a transformative solution, a possible game changer. Companies such Amazon AWS, Alibaba, eBay, Google and Facebook have revolutionised markets by harnessing technology to deliver innovative products and services.

SA’s emerging technopreneurs have the potential to drive similar transformations locally, spurring industrialisation, creating jobs, and positioning the country for sustained economic growth.

But what exactly is technopreneurship and how can it be leveraged to achieve these goals?

Technopreneurship refers to the process of combining entrepreneurial skills with technological expertise, to create and innovate within various industries. Technopreneurs are individuals who identify opportunities to apply technology in new or existing markets, creating products, services or solutions that address specific needs or challenges.

Unlike traditional entrepreneurs, technopreneurs often focus on developing tech-driven businesses that can scale rapidly, disrupt existing markets, and introduce new business models. Technopreneurship is characterised by its emphasis on innovation and the use of advanced technologies such as artificial intelligence (AI), big data, blockchain and the Internet of Things.

These technologies enable technopreneurs to develop cutting-edge solutions that can transform industries, increase efficiency and open up new economic opportunities. Embracing technopreneurship means fostering a culture of innovation and equipping individuals with the skills and resources needed to thrive in a technology-driven economy.

Industrialisation has long been a cornerstone of economic growth, driving job creation and societal progress. However, the traditional models of industrialisation that rely on manual labour and natural resources are unsustainable in today’s digital age. Technopreneurship offers a modern approach to industrialisation by leveraging technology to develop new industries and revitalise existing ones.

In SA, sectors such as renewable energy, agriculture, manufacturing and financial technology are particularly well-suited for technopreneurial innovation. Technopreneurs can introduce advanced technologies that streamline production processes, reduce costs, and enhance competitiveness in both local and global markets. By fostering a technology-driven industrialisation process, SA can build a more resilient and diversified economy.

To fuel technopreneurial growth, the government and private investors must increase access to funding. Programmes like the Technology Innovation Agency in SA, which supports tech start-ups, are steps in the right direction. Expanding such initiatives, alongside venture capital and impact investment, will give technopreneurs the financial resources needed to scale their businesses.

Expanding tech hubs and incubators can provide essential resources, mentorship and networking opportunities for aspiring technopreneurs. Some examples include Cape Town's Bandwidth Barn and JoziHub in Johannesburg, which offer collaborative spaces for innovators and provide access to workshops and investor networks. These hubs must continue to expand into rural areas, ensuring that technopreneurship opportunities are available across SA.

The success of technopreneurship hinges on a well-educated and tech-savvy workforce. Coding, AI and digital literacy should be integrated into the educational curriculum at all levels. Programmes like WeThinkCode, which offers free software engineering training, are essential for equipping South Africans with the skills needed to thrive in a digital economy.

The regulatory environment can be a hurdle for new businesses. Simplifying business registration processes, reducing bureaucratic red tape and offering tax incentives for tech start-ups can encourage more individuals to pursue technopreneurship and attract foreign investment.

Encouraging public -private partnerships is essential for nurturing technopreneurship. Vodacom’s partnership with the department of basic education to provide e-learning platforms is an excellent illustration of how public-private cooperation can scale technological solutions. These partnerships should continue to focus on creating infrastructure and funding that support technopreneurs.

The motivation behind promoting technopreneurship in SA lies in its potential to solve some of the country’s most pressing challenges. Technopreneurship can reduce youth unemployment by creating jobs in high-growth industries such as software development, cybersecurity and renewable energy. It also enables economic diversification, moving away from traditional reliance on resource-based industries, thereby fostering a more resilient and dynamic economy.

Additionally, technopreneurship promotes sustainable development. For instance, innovations in renewable energy and energy efficiency technologies contribute to environmental sustainability while simultaneously addressing SA’s energy crisis. These solutions are critical for creating a greener, more sustainable future for the country.

The government should introduce incentives for technopreneurs who focus on critical areas such as renewable energy, healthcare and education. These incentives could include tax breaks, grants and expedited patent processing to encourage innovation in sectors vital to SA’s future.

To cultivate technopreneurship, SA must nurture a culture of innovation where risk-taking, experimentation, and even failure are seen as valuable parts of the entrepreneurial journey. Educational institutions, businesses and government agencies should work together to promote this mindset.

Infrastructure is the backbone of technopreneurship. SA must invest in developing high-speed internet access and reliable electricity and transportation networks, especially in rural areas to enabling technopreneurs to innovate and scale their businesses.

To fully integrate into the global digital economy, SA should strengthen ties with international tech ecosystems. Collaborating with global tech hubs will give technopreneurs access to new markets, advanced technologies, and international expertise, helping them compete on a global stage.

• Dr Boikanyo is an academic at the University of Johannesburg.