What makes a business innovative enough for KIPP?
Innovation does not necessarily mean inventing a completely new machine or developing advanced software.
It can include a new product, an improved production method, a technology-enabled service or a locally developed solution that addresses a clearly identified market problem.
However, simply opening another retail shop or offering an ordinary service does not automatically make a business innovative.
A business should be able to explain:
- What problem exists in the market?
- What is different about its solution?
- Who needs the solution?
- Why would customers choose it over existing alternatives?
- How can the solution be commercialised?
- What prevents competitors from easily copying the idea?
How to demonstrate commercial potential
A good innovation needs a credible route to market.
For example, a business developing agricultural technology should demonstrate:
- The agricultural problem it intends to solve.
- The farmers or agricultural businesses that need the solution.
- Evidence from product testing or pilot projects.
- The estimated cost of producing or delivering the solution.
- The expected selling price.
- The number of potential customers.
- The plan for expanding beyond the initial market.
A prototype, customer interviews, pilot results and letters of interest can strengthen the commercial case.
What should your KIPP business plan contain?
Your business plan should explain the innovation and show how funding will help commercialise it.
Recommended sections:
- Executive summary.
- Company background and ownership.
- Description of the innovation.
- Market problem and opportunity.
- Product or service development.
- Competitive analysis.
- Intellectual property considerations, where applicable.
- Marketing and sales strategy.
- Operational requirements.
- Management team and technical expertise.
- Funding requirements and use of funds.
- Five-year financial projections.
- Risks and mitigation measures.
- Commercialisation timeline.
Common application weaknesses
An idea without evidence
A promising idea is not the same as a commercially viable product. Demonstrate testing, customer interest or a credible development plan.
Unrealistic sales projections
Do not assume that every potential customer will purchase the product. Explain how customers will be acquired.
An unclear funding request
Break the funding amount into specific activities, equipment, development costs and working capital.
Insufficient technical capacity
If the innovation requires specialist expertise, identify who will provide it.
Frequently asked questions
Potentially, if its solution meets the programme’s innovation and eligibility criteria.
Not necessarily in every case. However, evidence of commercial potential and readiness is important.
The permitted expenditure depends on the programme’s current funding rules and the approved project budget. Confirm this with the programme before including marketing costs.
Contact the programme, obtain the latest application requirements and confirm that your business and proposed project fall within its mandate.