Entrepreneurial failure has long been a major barrier to talented and experienced individuals taking the leap from long time employee to business owner. The perceived risk may often simply be to big, with financial and family commitments considered, many a new idea is often suppressed even before it has the opportunity to see the light. Banks and small business investors today see the business plan as a major move forward in ensuring the risk is reduced as the entrepreneur gets to thin and work through the various issues prior to the business starting. Still entrepreneurs feel that more can be done to address this issue.
Young Business for South Africa (YBSA) is helping young entrepreneurs to confront their fear of failure. On 17 March 2011, YBSA is hosting a "Fail Fast, Fail Forward: How failure makes successful entrepreneurs" at the Gordon Institute of Business Science in Illovo, Johannesburg.
Telana Simpson, YBSA Director and entrepreneur, will be chairing a panel of experts gathered to dispel the myths around failing in entrepreneurship, and to start changing the mindsets of our young leaders towards failure.
Sitting on the panel are Yashivan Govender of FirstStep.me (Entrepreneur and author of the 'Fun Side of Being Serious'), Danny Tuckwood of MetaCo (professional Leadership & Entrepreneur Coach), Allon Raiz of Raizcorp (founder and CEO of Raizcorp, the only privately-held, unfunded, profitable business incubator on the African continent), Dr Marius Pretorius (Associate Professor of Strategy, Leadership and Turnaround at the University of Pretoria). The panel will discuss what attitudes would be more beneficial for encouraging entrepreneurs and those who support them, to develop business in our country.
The event is free to all YBSA members and R100 for non-members at the door (membership enquiries can be directed to admin@ybsa.org.za). Please note that booking is essential as the seats are limited.
Attitudes and Perceptions about Entrepreneurship
The Global Entrepreneurship Monitor (GEM) Global Report 2010 states that "if the economy in general has positive attitudes toward entrepreneurship, this will generate cultural support, financial resources, networking benefits and various other forms of assistance to current and potential entrepreneurs." Their investigation reveals that in South Africa, 29% of respondents have a fear of failure and only 16.7% have entrepreneurial intentions.
In the report South Africa and a further 23 other countries are classed as efficiency driven economies. When it came to indicators of attitude, GEM noted that in SA 40.9% of respondents' perceived opportunities in the entrepreneurial arena, and that South African's were 2.7% less fearful of failure than the un-weighted average. 77.5% of people surveyed thought entrepreneurship was a good career choice, yet only 16.7% of respondents had entrepreneurial intentions, 6.5% below the un-weighted average for this category.
With perceptions indicating that a high status is given to successful entrepreneurs and that there is a great emphasis placed on entrepreneurial endeavours in the media, why are our entrepreneurs still battling to find support?
Some of the most influential people of our time include; Richard Branson, Bill Gates and Donald Trump. They all failed to some degree before they got their formulas right and achieved the heights of success they enjoy today. Why is it in South Africa we are still battling to see failure in a positive light, as a learning device instead of something of which we should be ashamed?
Endeavour's white paper on "The State of Entrepreneurship in SA" in 2009, highlights the concern that there is a low tolerance for entrepreneurial failure in South Africa. "People disassociate themselves from them, banks shut them down and the press demonises them" (pg.11). Entrepreneurial failure is an experience that financers in other parts of the world look for in entrepreneurs that they consider funding. This culture in South Africa of not supporting entrepreneurs who have failed needs to be confronted if we are to create an environment conducive to fostering more entrepreneurial activity.
Its interesting to look at the motivation and inclination of entrepreneurs in South Africa. Entrepreneurs are those who are passionate and driven about the business plan that they intend to implement. Neither a shortage of business funding, not the opinion of others will stop them from what they know they can achieve. If you compare them with the rest of the population we will quickly find that entrepreneurs are go getters, not blaming anyone for their situation and not waiting for anyone else to improve it. For entrepreneurs the use of digital marketing services will also be crucial. These are people who take responsibility for their actions and futures. A great example of this was one of the finalists of the country's most prestigious empowerment awards program
Unique motivation has powered Design Communications Group CEO Zoë Molapisi into the finals - a burning desire to encourage South Africa's 'no capital, no connections' entrepreneurs.
"I'm honoured to be a finalist," said Zoë Molapisi. "The accolade is for personal achievement, but I won't be at the finals in my personal capacity. I will be there for all the start-up entrepreneurs who began with no capital and no connections and asked for no favours.
CEO of By Design Communications Zoe Molapisi
"It's important a strong message goes out that you don't need patronage and a handout to succeed in business. You can do it by hard work and perseverance; by holding your head up and never holding your hand out.
"It's satisfying to be recognised for that type of success and a great opportunity to give encouragement to self-starters, hard workers and go-getters that have very little else going for them."
Eight years ago, Zoë Molapisi launched her 'one-stop' communication group By Design as a one-woman start-up with no seed capital and no contracted clients. Today annual turnovers are fast approaching the R100 million mark and clients include major brands and institutions such as Coca-Cola, Telkom, Cell C and many blue chip clients across different sectors.
In addition to local communication and promotional projects, By Design organizes conferences and travel incentive programmes in several markets in sub-Saharan Africa and island territories in the Indian Ocean.
Expansion to South America is being explored.
"My message to tomorrow's entrepreneurs is simple," said By Design's founder. "You don't need government incentives. You don't need hand-holding by some official program. You don't need to be well connected.
"You need passion, commitment and the sort of commonsense that tells you to keep overheads low and service standards high. You can make it. I know ... because I did."
This is certainly a very important lesson for many who see their futures relying on others. When speaking to young people about their futures this is a key message I try to get across. Yes of course you need to connect with and work with others to get where you want to be but no one else is responsible for your future success other than yourself.
