tawandamusarurwa
Stephene Chikozho
Big Business Ideas
ENTREPRENEURSHIP in Africa is gaining traction.
There are many success stories of entrepreneurs on the continent.
In many motivational, social and media spaces, the mantra “If you can dream it, you can do it” has become a guiding principle for many budding business owners.
Yet, starting a business comes with its unique set of challenges.
Defying the odds at the beginning requires a good idea allied to a great implementation plan.
Defying the odds calls for an entrepreneurial spirit: a willingness to take risks.
Beating the odds at start-up requires business acumen to put the plan into action and, more importantly, determination to deal with setbacks.
Key steps to success
According to Entrepreneur magazine, nearly half of all new start-ups fail within the first three years.
Defying the odds at start-up is tough.
First and foremost, an idea – no matter how good – must be combined with the willingness to take risk.
Not all ideas are good ones though; careful thought, research and detailed planning are critical.
Risk might be inherent in business enterprise, but successful entrepreneurs are those who are not only willing to take risks but are also able to manage risk.
Realistic propositions
Having an idea is the first step for most African entrepreneurs, while the next hurdle is finance.
Some start-ups require very little capital, and a few require none at all.
However, many require significant backing and most will need to seek funding at some stage in the growth process.
An entrepreneur must be able to convince financial backers that the concept is valid, and that they have the skills and knowledge to turn the original concept into a successful business.
It follows that the idea must be profitable.
Sometimes, an idea may look great on paper but turn out to be uncommercial when put into practice.
Determining whether an idea has potential requires a study of the competition and the relevant market.
- Who is competing for customers’ time and money?
- Are these competitors selling directly competitive products or possible substitutes?
- How are competitors perceived in the market?
- How big is the market?
Once a company is established, the challenge shifts: the objective now is to maintain sales and grow in the short- and long-term.
Adapting to survive
Long-term business survival depends upon the company constantly reinventing and adapting itself in order to remain ahead of the competition.
In dynamic African markets, which are growing and evolving all the time, the idea on which the company was founded may become irrelevant over time and rivals will almost certainly copy it.
The ecosystem in which a business operates is rarely, if ever, static.
Corporations exist in these ecosystems as living organisms that must adapt to survive.
Finding a balance
Determining how fast to grow is, therefore, a balance of the founder’s skills and desires.
But to survive, the idea must be unique enough to define its own niche, and the individual or group behind it must demonstrate entrepreneurial spirit.
They need the flexibility to adapt the idea — and themselves — as business and market pressures demand.
Luck will play a part, but it is the balance of these factors that determines whether a small start-up becomes a giant.
The journey from a small start-up to a thriving enterprise is a marathon, not a sprint.
Through starting small and thinking big, entrepreneurs can build resilient businesses that stand the test of time.
This approach fosters innovation, encourages prudent risk-taking and ultimately leads to sustainable growth.
Stephene Chikozho is chief executive of Big Business Africa, a dynamic and influential network dedicated to fostering collaboration, innovation, and success for businesses in Africa. He can be contacted on WhatsApp +263772409651 or email [email protected]
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