However, according to the Cape IT Initiative 2003 census, a staggering 80% of ICT companies in the region have less than 20% black ownership. 

The potential for the IT sector to confront persistent issues such as poverty and empowerment has not been fully exploited.

To address this, Cape IT initiative, the Provincial Government and UUNet, have initiated the UUNet BWB Launchpad pilot programme, which aims to develop sustainable black IT businesses in the Western Cape.

The intensive nine-month programme is designed to support emerging black ICT companies, and includes elements of business education and company incubation to ensure that entrepreneurs who complete the programme have successful and sustainable businesses.

Says Lynne Brown, provincial minister of finance, economic development and tourism: The challenge around jobs is enormous. At present, unemployment stands at about 24%, which translates into roughly 500 000 people, of whom almost 80% are classified as youth. The national and provincial government of the Western Cape has recognised the importance of the ICT sector in addressing its development challenges. The department is committed to creating sustainable jobs and getting involved in projects such as UUNet BWB Launchpad, which seeks to create an environment to build broad black economic empowerment so that those previously excluded are brought into the mainstream economy, not only as workers, but as owners and active participants.

Brown adds: The Provincial Government of the Western Cape realises the need for this, and that is why we have donated R250 000 towards this project. This amount will make it possible for ten companies, owned by young historically disadvantaged entrepreneurs, to receive support for their ICT businesses.

To truly support the development of black IT business, we need to provide not only access to fundamental business development skills, but also access to an environment that is conducive to the successful running of a company, says Masedi Molosiwa, executive director of Cape IT Initiative. This two-pronged approach of proving both theory and a practical learning space will ensure that the participants have the most chance of success.

On the practical side, UUNet BWB Launchpad participants receive subsidised tenancy at the UUNet Bandwidth Barn and a budget for telephone, Internet and other facilities for the duration of the programme. 

In addition, Microsoft SA is sponsoring software for each of the companies through its Empower Subscription programme.

The first three-month phase, which is now complete, focused on business planning, and was facilitated by Cape Venture Partners (CVP), which assists companies to turn their ideas into successful businesses. Using a combination of workshops and one-on-one mentoring sessions, the participating companies were guided through the business planning process. CVP emphasised the importance of the value proposition and looking at the business from a customers point of view.
The completed business plans were presented to an independent evaluation board of funders and market specialists who evaluated the potential of each business plan, as well as provided feedback to the participants. The companies now move onto the second phase of business implementation, where they are supported by relevant executive coaches and mentors to start living their plans, says Molosiwa.

The nine participating companies have business models ranging from traditional software development to PC recycling to Web streaming live events to nightclubs. Although the business models are very different the people on the programme have two things in common - their talent and their ambition. Every person on this programme deserves to be here, and I truly hope that in April 2005 they will emerge as confident and capable business owners, concludes Molosiwa.
Once this pilot is complete in April 2005 it will be reviewed by a panel which includes members from Cape IT Initiative, the Provincial Government and UUNet. Using the findings of this review the programme will be adapted and developed to ensure greater success for the 2005/2006 programme.