adminMorris Mpala, MoB Capital Limited
RELIGION or culture is usually rigid. It has to follow certain norms/values/ethos so that it stays relevant and maintains its uniqueness otherwise it ceases to be.
When we start bending religion to suit our earthly wants or needs then we are losing the plot and what we are doing is being done in vain.
Dynamism in religion is based on delivery channels for instance via TV or church fellowshipping and not the underlying principle, which is cast in stone.
It’s as simple as that. It’s either you are doing the right thing or not, there are no grey areas. It’s either you are a sinner (but trying everyday to sin no more) or you are righteous (of which heaven is the reward). When we start to have banana religious culture that is when chaos prevails.
In the same rich vein bankers must be rigid to (small to medium enterprises) SMEs otherwise they will destroy the sector. Rigidity in this case is in terms of applying business principles to nurture SMEs not in terms of how they deliver the service provision to the esteemed sector. Banana business acumen will destroy SMEs who are the economy worldwide. Remember SMEs are a worldwide phenomenon. Bankers need to instil right values/norms/ethos that are relevant to the health status of small businesses.
Yes flexibility is there but not from re-creating rules about business. For instance book keeping has to be done and what is flexible could be the frequency or in house or outsourcing. Not doing your books is ‘sinful’ and wages of economic sin is death of the firm. SMEs will prefer an easy way out or just what they are used to but business does not thrive on that. Business is not about that. It’s about what is wrong or right. It’s about the dos and don’ts. That is what has defined business and once you change that perspective then you are losing the plot and you will have the ‘here today gone tomorrow enterprises’. What SMEs are afraid to follow in their day to day dealings is costing them sustainability and growth. It’s causing havoc to their legacy. Who says when you die your business has to die with you?
What has dampened the business culture is that bankers have started giving solutions on warped sense of relevance when in fact it is clouding decision making in the SMEs sector.
The SMEs sector needs to do things right at all times not when it suits them fine. SMEs need to be relevant not to situations but to business acumen.
Bankers need to prescribe solutions based on concrete, tangible and proven remedies not banana solutions that are piecemeal and offering solutions for now and pleasing SMEs.
Strategic intent is of paramount importance in giving solutions. The cornerstone of business foundation is rigid so why should we deviate from that? When we compromise the business values and ethics we start to destroy the sector. You want the honey you have to be stung by the bees. You want the gain so much you can’t ignore the pain. It’s the way it is.
Conditions from bankers can be flexible but not underlying principles of business management. Those are commandments not to be tampered with and as of now they have been tampered with to the detriment of SMEs. This has caused SMEs to have stunted growth, which has curtailed sustainability. I am not the one to play the blame game but in this instance bankers are at fault.
Just like in religion once you start entertaining earthly ways you know you are lost. Go back to the basics and start afresh then you will see the light.
In business we also keep the basic rules (which are cast in stone) and you will enjoy the fruits of commitment, which are longevity. Get me right on this one. Bankers have listened and adopted a wrong approach to SMEs. They heard what SMEs are saying unfortunately they prescribed wrong solutions, which have also caused headaches for themselves as much as the SMEs themselves.
This is the reason why the success rate for SMEs is low – wrong remedies to known and documented challenges. It’s the reason SMEs worldwide are facing viability challenges because solutions at their disposal are not suitable as they have been watered down to suit their inefficiencies.
The current system has inherent inefficiencies and needs to drop it and refocus on prescribing the best remedy no matter how painful it can be. It is the only way out otherwise we will continue to pour wrongly packed solutions with no light at the end of the tunnel though with good intentions.
If there were excellent solutions we would have seen SMEs excelling in huge numbers. We would have seen that necessary change. Business solutions are not meant to be nice to ourselves, they are supposedly meant to solve our challenges. If they don’t then we are wasting our resources (time included) and we would rather take a break, understand the situation and re- engage to meet the required standards. In the same vein we have too many religious sects but the level of righteousness drastically goes southwards.
Wrong prescriptions will not solve the business challenges at hand. It’s not about making people happy and tailor making solutions based on what they would like to do regardless of its suitability but based on palatability.
Only relevant solutions matter. The right things have to be done at all times. All else is cosmetic and will not give SMEs the necessary impetus.
Bankers are not here to please SMEs nor are SMEs here to be nursed like sick puppies. Both need to play their roles consistent with the values of sustainability.
The art of business acumen must not change to suit the chaos in any business environment regardless of respective balance sheets. Small or big they use the same business principles. Bad attitudes need to start disappearing and let’s see that winning attitude based on underlying principles given there is no shortcut to success.
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Morris Mpala is the managing director of MoB Capital Limited, a Bulawayo-headquartered micro-finance institution with footprint across the country.
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