An Enterprise Development Initiative: Incubation In The South African Motor Body Repair Sector

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Abstract

The paper investigates motivations, challenges and success factors experienced by an incubator company and panel shop owners during transformation from a non-registered to a registered panel shop. Since 2006 the company has assisted six black owned panel shops in upgrading their businesses through an annual grant of R1.5 million per business. The objective is to develop and empower disadvantaged black owned motor body repairers. The study was conducted through multiple case studies and in-depth interviews with owners and staff of these panel shops including incubator company personnel. The study revealed that noticeable improvements were in better infrastructure, improved management skills, registration with the repair authority, access to work from the insurance industry and better turnover. Challenges faced were in building of trust among panel shop owners and support agencies seconded to their businesses by the incubator company during the incubation process.

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