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The pair have signed a historic deal to supply the know-how for China to pick out
the hi-tech companies in an ambitious plan to roll out 1000 business incubator parks
by 2005.
Each of the parks will hothouse the businesses that China hopes will become the
new Microsoft's, Compaq's and Orisons and unseat the US as the world's largest economy.
But to get the chance of a government hand-up, each fledgling company must get past
the business assessment tools designed in the Auckland suburb of Albany to identify
which are most likely to succeed or fail.
And it's not just China that is pinning its hopes of future development on the know-how
of Steve Lewin and Margaret Mulqueen of QLBS.com.
Iran - like China, a highly educated and tech literate society - is already using
Lewin's Q100 system to choose companies for its Isfahan Science and Technology town,
a 600ha business incubator being built in the desert 370km from Tehran.
The park at Isfahan, a city known locally as "Half of the World" because of its
classic architecture of flowered domes and giant minarets, is just the first of
17 science and technology towns planned, all of which will use Q100 to sift the
entrepreneurial wheat from the chaff.
Lewin, for 17 years a management consultant, said the scale of the deal showed how
finding a global niche - in this case business assessment software for incubators
- let New Zealand business foot it on a world stage. "The business incubator and
science park community is very small globally, but it's a very powerful niche for
us. That's why the Iran deal was so important for us because they are a member of
the International Association of Science Parks."
The association's members share information providing a small community in which
to market.
Lewin's software is essentially a scoring system designed to rate a company's chances
of survival on a scale of one to 10. It is based on years of work to identify the
most common factors in businesses that fail or succeed.
Initially the software was picked up by Victoria University, New Zealand Trade &
Enterprise and Te Puni Kokiri, but countries all over the world are embracing incubators,
a concept pioneered in the US and Germany 20 years ago.
There was a simple reason why, Lewin said. An un-incubated hi-tech company stands
an 80% chance of going belly-up. In an incubator, which provides advanced services
like computer networking and mentoring which are scare resources in many countries,
that rises to an 80% chance of survival over two to five years.
Lewin's system is designed to help trained locals (in Iran training has been provided
via the internet) identify weaknesses in a company's make-up that could undermine
it. It's therefore not just a tool to spot probable losers, but to help guide and
nurture companies by identifying their weaknesses and allowing remedies to be dealt
with.
"Most small businesses that fail do so for some very simple reasons: problems with
cashflow that are predictable, people management and marketing," Lewin said.
Pinpointing such reasons for failure among New Zealand companies allowed Lewin to
build his system.
Discussions with India are advancing, and development agencies in the struggling
north of England have shown interest as well.
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