Johannesburg, 03 Mar 2008
South Africa ranks among the leading entrepreneurial countries in the world. South Africans are driven, aggressive and have a sense of urgency when it comes to service delivery. This entrepreneurial spirit will continue to fuel the growth and development of entrepreneurs.
Entrepreneurs make a huge difference to the economy - especially in a country like South Africa with high levels of unemployment. Successful entrepreneurs have already created a lasting legacy in our country. Success is possible for any business. Just decide from the outset what you want to do and then stick to the plan.
Passion aside, entrepreneurs also need to look at the very real challenges they can expect to face in starting their own businesses. Finding financing is potentially the initial stumbling block entrepreneurs usually experience. This is because it remains tough for classic start-up businesses to raise funds through a financial institution. I would thus suggest entrepreneurs approach specialist organisations which have been set up to fuel emerging and small businesses. Another avenue to consider is making use of venture capitalists. The company would, however, need to be willing to share equity in return for the cash injection in this case.
Fuelling entrepreneurial growth is vital to building and sustaining a country like South Africa. The 2006 Global Entrepreneurship Monitor reports that a systematic relationship exists between a country`s level of economic development and its type of entrepreneurial activity. With South Africa`s emerging market economy, I believe that despite current challenges the country still holds huge opportunities for those willing to act upon them.
South Africa`s current stats typically show a lower level of per capita GDP with an industrial structure characterised by the prevalence of many small companies. Economic development is bolstered as we increase our GDP, because larger companies subsequently move in and more opportunity is then generated for smaller companies. All the while, jobs are created and skills shared and learned - exactly what we need locally.
The opportunities I`m referring to aren`t only about revenue and growing GDP though. Entrepreneurial behaviour remains a crucial engine of innovation and growth for the economy and for individual companies. Innovation doesn`t have to be confined to any one area of the business. It is a thread that can and should run through the entire organisation.
Innovation is a cornerstone on which many South African companies have built their success. Doing things differently doesn`t go out of fashion. I`m not necessarily talking about inventing a new product, but rather reading your market: looking at the mistakes your competitors are making and seizing the opportunity that lies in that gap. Improving service remains a crucial means of innovation - and one that customers value no end.
That being said, there are big differences between small and large organisations, and these make it generally easier to innovate as a small company. You don`t need money to innovate if you are small enough and can typically also afford to take bigger risks. Just by running your own business, you are already a bigger risk taker. Smaller companies are also more agile making it easier to change course if need be.
When it comes to ensuring innovation remains core to your business strategy, here`s what I suggest:
1. Have a vision for your business and stick to it.
2. Have a solid strategy within which innovation features predominantly.
3. Create a culture that supports innovation.
4. Be agile and change things if they don`t work.
5. Employ and share with people who support the vision.
6. Empower and trust the people you work with.
7. Give advice, not permission.
8. Remain focused and never lose your passion.
9. Be innovative in everything you do, even if it`s how you manage your stationery purchasing.
10. Listen to your customers, the market and your people.
By Ivan Epstein, CEO of Softline