One such company is Saratoga Software, which has set up its own software and business incubator, SmartStart. Our whole approach is to work in collaborative ventures with our partners, says Saratogas business development manager, JB Maree. SmartStart is an extension of that philosophy to support young entrepreneurs.

SmartStart, located at Saratogas Cape Town offices, offers new firms access to business and technical infrastructure, coaching, software development tools and skills training.

Saratoga also offers access to deals flowing through its network of distributors, partners and associate companies, as well as funding through third-party providers.

We work closely with the companies in our incubator to help them develop successful software products and sustainable businesses, says Maree. The benefits run both ways: we get access in turn for an ever-improving skills base, and the opportunity to learn from and potentially partner with innovative young companies.

The incubator is a logical extension of Saratogas overall approach, which is to develop software in the context of entrepreneurial partnerships. Usually we start with a specific project for one of our US subsidiaries, or for a partner company, says Maree, but we always design our software to be more broadly applicable and sellable. This approach not only ensures that Saratogas products pass the test of market demand before they are even developed, it also allows users and developers to spread the risk of developing the product between them.

A lot of local companies find it difficult to afford the cost of custom software development, comments Maree. We take on some of that risk up-front by keeping our initial prices low and implementing usage-based payment models rather than flat licensing fees. In return we share in any potential upside from the product if we develop it well, and it sells to additional clients, we share in the revenue.

Just about anybody can build software nowadays, he adds. Thanks to our pricing and partnership models, we are able to build incredibly flexible and customisable client-centred solutions.

SmartStart is one way in which Saratoga is positioning itself to ensure that it has access to an ongoing supply of new ideas and potential new partners.

In the 90s there was lot of excitement about fast companies and how to create an internal environment that encouraged and rewarded innovation, says Maree. Now we recognise that a lot of innovation comes from partnerships and collaborations how you manage your external relationships. We want to build successful partnerships in every way that we can.