SATSA celebrates Tourism Business Incubator success

05 Apr 2024

SATSA CEO, David Frost.

Sigma International – a leader in business incubation and enterprise development, alongside inbound tourism association SATSA – will celebrate the second year of its transformative partnership through the SATSA Tourism Business Incubator next month.

“This collaboration, initiated in May 2022, has been a beacon of growth and opportunity, merging the expertise of both entities to elevate the best of the best entrepreneurs, start-ups, and small businesses within the vibrant tourism sector,” SATSA said in a press release.

The inaugural year of the programme witnessed remarkable achievements, securing R5.5 million (€271 770) in enterprise and supplier development funding. This financial contribution led to an increase in the monthly turnover of the top three incubatees by over R750 000 (€37 060), coupled with the creation of more than 20 new jobs.

Sigma International's CEO and Co-Founder, Akash Singh, shared the programme's accomplishments: "Over 1 000 ‘needs-based’ business support interventions were conducted, including the creation of 21 websites and the completion of 40 sets of management accounts for our incubatees. Furthermore, we've invested R480 000 (€23 710) in essential tools and equipment to enhance operations. With the unwavering support of our first-year funders, we're poised to elevate these successes to new heights in year two."

David Frost, SATSA CEO, reflected on the programme's impact: “With transformation at the core of our organisation, the Tourism Business Incubator is an effective programme for us to lead by example and create a ripple effect throughout our industry. We're thrilled with the programme's success in its first year, facilitating nearly R6 million (€296 395) in funding, boosting incubatee revenues, and supporting job creation. The enthusiastic industry support fuels our motivation, and we eagerly anticipate building on this momentum."

The programme's blueprint for success

The incubation programme aims to champion the growth of small businesses with a majority black ownership by inviting the tourism industry to fund and nominate top enterprises.

Tailored business analyses and interventions pave the way for these businesses to thrive, supported by mentorship in business management, marketing, and financial skills through Sigma International's ISO 9001:2015 accredited model. This holistic approach ensures sustainable growth and profitability for the incubatees while providing funders with valuable B-BBEE verification collateral.

"The commitment of SATSA members to the incubation programme not only fosters job retention and skill development but also empowers local communities through business growth and industry transformation," Singh added.

“Prominent industry players, including City Lodge Hotel Group, Protea Hotels by Marriott, BidTravel, and several others, have been instrumental in funding the first cohort of incubatees. Their collective effort underscores a shared vision for transformation and economic growth within the tourism sector,” SATSA said.

Nine incubatees attended and exhibited at an industry General Managers' Lunch event, themed Diverse Suppliers – Collective Success, hosted at City Lodge Hotel Fourways on March 26.

COO of City Lodge Hotels, Lindiwe Sangweni-Siddo, and Director of Operations, Tony Balabanoff, highlighted the structured, impactful approach of the SATSA Tourism Business Incubator in driving transformation and achieving significant milestones in a relatively short period.

Siddo said: “We've been really successful this past year with 17 candidates coming through the incubation process. Having a third party, Sigma International, who does all the heavy lifting and handholding, and who was our proxy in terms of places we couldn’t reach, was the best decision we ever made.”

Balabanoff echoed her sentiment, explaining that while they have always been committed to the journey of transformation, it was challenging to get the momentum going. “The SATSA Tourism Business Incubator really gave it structure. We've achieved a lot in a very short time due to having a framework and somebody helping us to drive this process. I'm thrilled that we've gone down this road.”

Hear why Sangweni-Siddo and Balabanoff believe this is the best decision they have made:

With 32 incubatees completing year one and 43 already onboard for year two, there is great potential for further growth.

“We are delighted that the broader industry and other associations, such as Asata and FEDHASA, have answered the call and commenced similar journeys with Sigma International Business Incubators. In this way, more incubatees can be onboarded, and the impact of the programme boosted across the tourism value chain with linkages for procurement across funders,” said Frost.

A campaign showcasing the programme's successes is set to launch, with updates available across all SATSA channels.

Getting involved

Those who wish to partner on what SATSA hopes will become the largest network of Tourism Business Incubators, starting with the National Department of Tourism and having been adopted by FEDHASA and ASATA, can get in touch with the following people: