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.
Showing posts with label small business finance. Show all posts
Showing posts with label small business finance. Show all posts
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.
Starting a business of your own is the dream of many a South African. In a country like South Africa where many of us are already fairly entrepreneurial it surprising that not many more decide to back their business plan and commit to being their own boss. Whether the reason is small business finance, the way we are brought up, to much risk or a lack of support, who knows, but there are still not enough South Africans making it as entrepreneurs.
I recently found this great article at the guys from Inc.com talking about just what is so fantastic about starting your own business. If this does to inspire you then I'm not sure at will. Enjoy!
1. You Control Your Own Destiny
Many entrepreneurs consider themselves "Type-A" personalities, folks that like to take control and make decisions. In other words, owning a business saves them from having to work for anyone else. "One reason to own a small business is the ability to direct the culture of your company," says Kasey Gahler, a certified financial planner in Austin who left a big company to start his own business Gahler Financial three years ago. "When you're in the driver's seat, you are making the decisions on how best to steer your company into the future. This might be overwhelming for some and one must know when and how best to delegate. However, when you are able to make your own decisions about how best to operate day-to-day, this leads to creating a culture, a brand and an organization."
2. You Can Find Your Own Work/Life Balance
One of the most oft-cited benefits of owning your own business is the flexibility that comes with it, whether that be working from wherever you want, setting your own hours, wearing a nightgown or even sitting next to your pet while you work. "I get to carry a knife, drive a pickup truck and hang out with my dog a lot more – what can be better than that?" says David Winters, who owns a mobile screen repair business called Screenmobile in Charlotte, North Carolina. Just as important, entrepreneurs say that owning their own business lets them set their priorities. "I make my own schedule, allowing me to spend time with the most important purpose in my life and the inspiration behind my company--my son, Zachary," says Yamile Jackson, whose company, Nurtured by Design, makes ergonomically designed products for babies and toddlers. "He went from having such a traumatic experience at birth (weighing less than two pounds and losing power to his life support equipment) that his story was featured in the TNT movie 14:Hours. He is now my company's CIO (Chief Inspirational Officer) and my healthy 9-year-old boy."
3. You Choose the People You Work With
When you work for someone else, you rarely get to choose whom you work with. If you don't like your co-workers you'd better start sending our resumes. That's not the case when you own your own business, since you get to make the decisions about who to hire (and fire). "Over the years, I've hired dozens of personal friends, family members and former business colleagues to work with me in different capacities," says serial entrepreneur Christine Clifford, whose Eden Prairie, Minnesota-based businesses include The Cancer Club and Divorcing Divas. "Why? Because they care about me. Surround yourself with positive people who give you the confidence and optimism you need to keep moving forward. Weed out the people that put out negative vibes. The smaller your organization, the larger choice you have about who you work with."
4. You Take on the Risk – And Reap the Rewards
There's no question that owning your own business is a risky proposition. But, with risk comes reward. Said another way, the better you are at managing risk, the more rewards you can reap. "The thing I enjoy most about the company is playing the 'game' of business," says Mark Dinges, who owns a Tustin, California-based business called California Creations that makes sophisticated windup toys called Z Windups. "It's like combining high stakes poker with the greatest strategy game ever. There are an unlimited number of variables in almost every aspect of the company, and as soon as you think you have things under control in an area, everything changes. Specifically, I like having my own money at risk, then having to live with the consequences of my decisions (good or bad). Like every other great game, the more you play, the better you get. You learn to recognize good opportunities from bad ones. You learn how to look like you are committed to new products, without actually financially committing to it until you have feedback and orders from your customers. You also learn to create exit strategies for bad situations and how to maximize the good ones. The most fun is to work on a project for several years with your team, overcoming all of the obstacles, and then millions of people enjoy it around the world."
5. You Can Challenge Yourself
Some people thrive on the routine of their job – performing the same tasks day after day. As an entrepreneur, you can bet that each day will be filled with new opportunities to challenge yourself, be creative and learn something new. "The great thing about owning a small business is I rarely experience the same day twice," says Michael Wilson, co-founder of Mad Dancer Media, a web design and brand management firm in Franklin, Tennessee. "Because every day, I learn something new about the act of owning a business. Whether its something about taxes, about accounting, or the plethora of other things that go into running a company, I am always fascinated by the parts and pieces of knowledge that I learn every day just to keep the business on track."
6. You Can Follow Your Passion
Many entrepreneurs say the long hours they invest in growing their business doesn't feel like work because they're actually having fun in what they're doing. "For me, it was a very conscious choice to make a living doing what I love," says Trish Breslin Miller, who started her craft retail store This Little Gallery in 1989 at the age of 27. "I figured I'd spend more hours of my life working than anything else I'd ever do, so why not make it my passion? I enjoy the satisfaction of promoting and supporting something I truly believe in; American crafts handmade in the USA."
7. You Can Get Things Done – Faster
Entrepreneurs as a whole seem to have an allergy to red tape. Rather than wait for approval – or for the guidebook to be written about how to do something – small business owners salivate at the chance to get things done. "Most large companies are too busy being big to be proactive," says Darren Robbins, who owns a screen-printing business in Austin called Big D Custom T-Shirts. "The best that most can do is react quicker than the other big companies when the wave comes at them. My company, on the other hand has the flexibility to be proactive, to run new things up the flagpole and be at the forefront of new products, techniques, or promotional strategies. Never underestimate the ability to truly be proactive."
8. You Can Connect With Your Clients
There are few things that get entrepreneurs as excited as when they get to interact with their customers. Rather than hiding behind a series of automated greetings, small business owners thrive on dealing one-on-one with their best clients – or making the decision to get rid of those customers they don't like. "You don't have to deal with customers who are jerks - you can even fire them," says Brett Owens, whose software company Chrometa makes time-tracking applications. Seriously, we did this once. Back when I did customer service related stuff for larger companies, I had to abide by the mantra of, 'The customer is always right' and there are some rare instances where that is complete BS!"
9. You Can Give Back to Your Community
Many entrepreneurs love the idea that in building their business, they can give back to the community or communities they operate in the form of the products and services they offer, by donating to charities and especially the ability to create jobs, which is particularly important these days. "I take great pride in knowing that I'm solving a problem others have and creating opportunities for people to have jobs that they love," says Chris Brusznicki, founder of a sports vacation rental business called GamedayHousing. "There's nothing more American than that."
10. You Feel Pride in Building Something of Your Own
One of the biggest differences in owning your own company as opposed to working for someone else is the sense of pride you establish in building something of your own. "There is nothing like being successful through your own leadership, abilities, ideas and efforts," says Peter Leeds, who coaches investors through his business, the Penny Stock Professional. Not only are there benefits from such self-actualization – you also get to brag about what you do. "One really cool thing about owning a small business is that people are interested in you and your story," says Steve Silberberg, who owns a weight-loss backpacking adventure firm called Fatpacking. "Not that I have some egomaniacal need to talk about the business or myself all the time, but it's still nice that people are interested."
So what are you waiting for? Get that business plan written, find the resources you need and start to get that business going or you will be dreaming forever.
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