Here, in Tonga, there are too many ideas but it ends there, no progress from ideas, no support. My surroundings and business environment in the country lack that innovative drive and most importantly the support and coaching. However, joining this programme has activated the innovation, passion, and enthusiasm I have in me for the many things I had always planned to do. I feel supported and cared for, that my idea matters and very much empowered, so thank you!”

- Elina Ashanty Langilangi, founder of TEL Tonga

Before joining the Incubate Better programme, TEL Tonga primarily functioned as an HR and employment consultancy catering to small businesses in Tonga. However, upon founder Elina’s enrollment in the programme, a new idea emerged to expand TEL Tonga’s scope to encompass startup incubation services. These services included training, coaching, mentoring, and providing access to workspace with amenities such as printing and internet services.

TEL Tonga applied for participation in the Incubate Better programme and was subsequently selected for the first stage, which entailed a virtual four-week training programme. They were also among three selected incubators to undergo in-person training and receive ongoing coaching as part of the programme’s second stage.

What is the Incubate Better programme?

In 2022-2023, the UN Capital Development Fund (UNCDF) launched the "Incubate Better" initiative in collaboration with YGAP, aiming to enhance locally led incubator programmes for entrepreneurs in the Pacific Islands. The initiative assisted new and early-stage incubators through activities in two phases:

• Phase 1: Development of a curriculum for capacity building of incubation programme providers throughout the Pacific Islands. The trainings consisted of interactive Masterclass webinar series, complemented by self-paced online learning modules. Representatives from 20 Incubation Programme Providers participated in this training.
• Phase 2: Enhanced support, intensive coaching and small-grant programme for three selected incubators over six months. This included up to US$15,000 in grant funding to launch or scale their incubator programmes.

Needs Assessment

Given TEL Tonga was very new to incubation services, Elina derived significant benefits from the programme’s first stage. Following completion of the four-week training, she gained clarity on her vision for establishing a co-working hub and identified key strengths and potential market opportunities within her existing employment business. With a clear vision, Elina began outlining potential spaces to secure and obtained initial quotes for equipment to outfit the hub.

However, Elina encountered challenges in developing a comprehensive financial model, defining a pricing structure, and identifying the specific services most in-demand by her target clientele. Additionally, she lacked an established entrepreneurship training curriculum and a cohesive strategy, goals, or framework for tracking the impact of her new services.

Coaching Scope

During the coaching phase, the primary objectives were to secure suitable premises for the co-working hub, conduct market research and engage with customers to understand their needs and preferences, and develop a comprehensive business strategy with a financial model and pricing strategy. Additionally, the goals included designing a tailored programme structure and curriculum for incubation services, creating a marketing plan to attract participants, establishing an impact evaluation framework for the pilot programme, and identifying and cultivating strategic partnerships for development and collaboration.

Elina adeptly capitalized on the inaugural Pacific Islands Entrepreneurship Expo, co-organized by UNCDF, which took place during the same week as the in-person coaching component in Fiji in August 2023. Through proactive engagement, she made valuable connections with entities such as the Tonga Chamber of Commerce and other potential partners.

“The trip to Fiji meeting everyone and the two days at the Expo was a huge opportunity for me to meet entrepreneurs, stakeholders from other Pacific Islands and Development Partners whom I now have contact with for future opportunities and assistance.”

Upon her return to Tonga, securing the space took longer than initially anticipated. However, UNCDF provided Elina with support to use this time effectively, where she could focus on refining her strategy and developing a robust financial model for the space. Additionally, Elina used this time to commence the design phase and initiated recruitment efforts for her inaugural training programme.

During this period, UNCDF Tonga Representative, Malieta Inoke actively participated in numerous coaching sessions. Her involvement aimed to offer local support and ensure continuity beyond the conclusion of the Incubate Better programme. This collaborative effort further bolstered TEL Tonga's capacity and sustainability within the local ecosystem.

Coaching Progress & Outcomes

“The masterclasses also allowed me to meet other entrepreneurs and development partners whom I also learned from their experiences. The businesses they are currently conducting, and their challenges inspired me. I also had the opportunity through this programme to converse with people outside of my comfort zone and country…”

- Elina Ashanty Langilangi, founder of TEL Tonga

Elina's journey with TEL Tonga, from the inception of its incubation services to the completion of training and coaching sessions, marked significant progress. Through the coaching, she achieved several key outcomes. She formulated a clear organizational strategy using the Vision Traction Template and conducted initial market research to determine pricing and service offerings. Additionally, Elina successfully acquired a suitable space for TEL Hub and developed a comprehensive financial model with testable assumptions. She also crafted a high-level curriculum for entrepreneur training and prepared a detailed run sheet for the first session. Furthermore, she devised pricing packages and executed a marketing plan to attract participants.

Despite these achievements, Elina identified several areas for improvement. These included establishing clear selection criteria for profiling entrepreneurs and enterprises, setting and communicating realistic expectations for entrepreneurs, and determining the appropriate level of contribution from participants. Additionally, she focused on ensuring that business education remained relevant, engaging, and applicable. Maintaining a clear and focused organizational strategy and exploring avenues to diversify income streams for enhanced financial sustainability were also highlighted as priorities.

Proposed Grant Use

TEL Tonga was granted US$15,000 to facilitate the piloting of her incubation programme and co-working space. The proposed utilization of funds included securing a suitable space, outfitting it with necessary equipment, and covering six months of rent.

Impact of Grant funding

With grant funding, Elina successfully secured and established Tonga’s first co-working space. While most of the funding aligned with her original proposal, some adjustments were made due to minor renovations required at the secured space. Fortunately, these renovations were covered by the grant. However, it is worth noting that the space may need to commence revenue generation or secure additional funding partners slightly earlier than she anticipated to offset these costs.

“I am offering a service and a new approach to incubation programmes that has never been done before in my country. It is not just a co-working space but it is designed to assist the entrepreneur in every way possible make costing easier and the support, not only coaching but have added reception services and administration services.”

As the space has recently become available to entrepreneurs, the full impact is yet to be realized. However, Elina has already garnered significant interest from both individual entrepreneurs and potential partners.

Next Steps

Elina has aspirations to transform her co-working space into Tonga’s Innovation Hub, with ongoing discussions with UNCDF to explore potential collaboration. As she ventures into this new phase, Elina will require support to validate the assumptions regarding the financial viability of her space and services. Additionally, forging meaningful partnerships within the ecosystem will be crucial for the hub’s success.

Recognizing the importance of continued guidance, ygap, an organization that supports early-stage social impact ventures, is in dialogue with UNCDF to continue the advisory role. This collaborative effort aligns with UNCDF's objectives for establishing Tonga's inaugural innovation hub and underscores a commitment to propelling Tonga's entrepreneurship ecosystem to new heights.

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Acknowledgement

This incubation project was made possible with funding from the governments of Australia, New Zealand and the EU as part of the UNCDF Pacific Digital Economy Programme.