© 2015 Terser Adamu, MyNaijaNaira.com. All rights reserved in all media.
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Preface I am a native Nigerian who moved to the United Kingdom as a child. Since
then, I have spent most of my life in the UK. I was educated there and
learned a lot about how the world works and how life can be enriched with
whatever little or more that you have.
Returning to Nigeria, after spending most of my life in the UK, showed me
the brutal realities of life. Life in the UK was very different from that in
Africa.
In 2003, I visited Nigeria and extended my stay due to a tragic family
incident. During this period, I immersed myself in the African ways of life
and it was like a new world opening up to me. I realised that when it came
to business, Nigerians and other fellow Africans had very different
experiences than what I had witnessed in the UK.
Soon I discovered that managing a successful business in Africa could be
vastly different from the UK. I realised that Africa possesses tougher
challenges to entrepreneurs and businesses than the UK, but Africa also
provides a deeper untapped potential that may benefit the entrepreneurs
and in turn Africa. It was a gradual discovery, nevertheless, a grueling one.
There was the chance to identify and take advantage of the opportunities
presented by Africa, and this got me involved in providing consultancy and
support to friends and family members in managing their businesses.
Although I returned back to the UK after my extended visit, I continued
providing business consultancy to all my African acquaintances through
Skype, phone, email and one-to-one whenever I visited Nigeria.
It continued for a period of six years until, in 2010, I decided to take it a
step further and divide my time between Nigeria and UK. Since then, I have
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developed a clientele helping businesses to face the challenges and assisting
them on how to flow with accomplishments in difficult circumstances.
Last year, an idea struck making me document all my experiences with
business in Africa and I started an online blog: MyNaijaNaira.com. I shared
all my personal experiences and encouraged other African and otherwise
entrepreneurs to do the same creating a one-of-its-kind database about
business and entrepreneurship in Africa.
I published first-rate content about business, what-to and how-to guidelines
regarding entrepreneurship and managed a mailing list of more than two
thousand subscribers from around the world. Most of these subscribers
include newbie local entrepreneurs asking for basic business tips to try their
hands at entrepreneurship; undergraduate and postgraduate business
students seeking help with their studies; experienced businesses seeking
practical guidance to expand and establish their businesses in Africa.
A year has passed since I published my first blog and now with more than 50
blogs posts, I felt it is time to move a step ahead. Despite a successful and
inspirational blog, this book is primarily a fulfillment of what my subscribers
asked for. It is an attempt to steer the journey to a level up and reach more
people willing to become entrepreneurs and contribute to growth and
development of Africa. With this book, I intend to provide an all-in-one guide
and achieve greater learning and enlightenment of people regarding
business in African continent.
I have put in countless hours in researching about business in Africa, and
the end result is this book, which has been compiled for my subscribers to
empower them to launch and maintain sustainable enterprises in Africa. It is
a modest initiative from me to offer any form of help required by anyone
intending to set up a business venture, be it an African or International
Entrepreneur. I also extend my offer by providing guidance beyond this
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book. If you are looking for ways to improve your business processes and
increase your profits, I’m available for consultancy and can be contacted
through the social media links below:
» Email: [email protected]
» At Twitter: https://twitter.com/tadamu29
» At LinkedIn: https://uk.linkedin.com/in/terseradamu
Terser Adamu
www.MyNaijaNaira.com
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Table of Contents Africa ............................................................................................................................................................. 6
Growth Drivers in Africa............................................................................................................................ 8
Political Stability .................................................................................................................................... 8
Urbanisation .......................................................................................................................................... 8
Booming Trade and Lesser Aid .............................................................................................................. 9
Technological Advancement ............................................................................................................... 10
Major Industrial Sectors in Africa ........................................................................................................... 11
Agriculture and Farm Processing ........................................................................................................ 11
Infrastructure ...................................................................................................................................... 12
Service Sector ...................................................................................................................................... 12
Consumer Merchandise Industry ........................................................................................................ 13
African Consumers ...................................................................................................................................... 15
African Consumer Market Trends ........................................................................................................... 16
Exponential Growth in Population ...................................................................................................... 17
Demographic and Psychographic Changes ......................................................................................... 17
Increased Urbanisation ....................................................................................................................... 17
African Consumer Mindset ..................................................................................................................... 18
Quality and Brand Consciousness ....................................................................................................... 18
Value-based Purchase Practices ......................................................................................................... 19
Contemporary Lifestyles ..................................................................................................................... 19
Technological Affiliation...................................................................................................................... 19
Saving-for-Consumption Culture ........................................................................................................ 20
Media Habits ....................................................................................................................................... 22
Entrepreneurship in Africa .......................................................................................................................... 22
Formulating a Strategic Business Plan .................................................................................................... 23
Business Vision and Mission ............................................................................................................... 23
Environmental Scanning and Scenario Analysis.................................................................................. 24
Basic Competitive Strategies ............................................................................................................... 28
Action Planning ................................................................................................................................... 29
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Business Plan Drafting ......................................................................................................................... 29
Financial Concerns .................................................................................................................................. 31
Borrowing ............................................................................................................................................ 32
Pooling Resources ............................................................................................................................... 32
Crowdfunding and Alternative Financing Sources .............................................................................. 33
Dealing with Debtors .......................................................................................................................... 34
Purchasing and Procurement .............................................................................................................. 35
Marketing Management ......................................................................................................................... 35
Advertising .......................................................................................................................................... 36
Public Relations Activities ................................................................................................................... 37
Online Marketing ................................................................................................................................ 37
Buzz Marketing ................................................................................................................................... 40
Personal Selling ................................................................................................................................... 40
Pricing Strategies................................................................................................................................. 41
Human Resource Management .............................................................................................................. 42
Recruitment ........................................................................................................................................ 43
Training ............................................................................................................................................... 45
Employment Laws ............................................................................................................................... 46
Trade Unions ....................................................................................................................................... 47
Conflict Management ......................................................................................................................... 47
Entrepreneurial Self Development ......................................................................................................... 48
Communication Skills .......................................................................................................................... 48
Presentation Skills ............................................................................................................................... 49
Time Management .............................................................................................................................. 50
Computer Skills ................................................................................................................................... 51
General Self Development .................................................................................................................. 51
Corporate Social Responsibility .............................................................................................................. 52
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Africa The Economic Battlefield
Africa is the second largest continent in the
world, after Asia, with a population estimated to
be more than 1 billion. It is remarkably rich in all
aspects with innumerable blessings and natural
resources. Though tainted with misconceptions,
the continent holds promising prospects in many
different ways. Africa is postulated to have
several economies reaching the next level of
growth and development as the continental
average of GDP growth rate is stable at 5% per
annum.
The continent – Africa comprises of fifty four independent nations, the
combined population of which is estimated to grow at 2.5% per annum. The
population growth rate in Africa is considered to be the highest among all
the other continents in the world and population pyramid is concentrated
towards the younger age groups as compared to other continents providing
more and better human resource to the continent. The comparatively
younger work force is also considerably literate empowering the probability
of exponential economic growth in coming times.
Nigeria is the largest country in Africa in terms of population with a
headcount of approximately 162.5 million. The next in line is Ethiopia with
approximately 85 million people and followed by Egypt with 82.5 million
people. The average population of most of the larger countries in the
continent is estimated to be about 30 million people.
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The life expectancy in the continent, on average, is considered to be around
52 years and it is increasing over the period of time with the help of
awareness programs and preventive campaigns launched and regulated by
respective governments of African countries.
Historically, all countries in Africa were once occupied by European nations.
The European colonies contributed to the cultural, social and demographic
diversity of the continent. The colonial Europeans ruled Africa by a divide-
and-rule strategy as they did in Asia. It made the Africans disjointed from
each other creating social differences which got embedded in the foundation
of African society. These differences lead to political instability and civil
insecurity and resulted in sluggish economic growth and development in
Africa.
The bleak picture of Africa is now transforming rapidly into a prospect of
high worth because of the desirable pattern of demographic changes and
economic growth with rising incomes per capita.
Despite the global economic setback in the last decade, Africa has managed
to grow by 2%, according to the Economist Intelligence Unit Report.
Currently, the continent contributes minimal to the global economy, but it is
growing faster than any other continent on the world. Africa is gaining
attention from international investors, which owes to the reduced political
instability, economy-friendly reforms, writing-off of debts and other
economic indicators being relatively favorable than the past. More
international investment means more money flowing in and more
opportunities for the locals. It has been said that the accelerated economic
development is right at the corner and opportunities to gain from the
economic development are widespread.
More than half of the countries in the continent are expected to grow at a
rate of more than 5% in future years. Noticeable mention includes:
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Sierra Leone – growing at an average rate of 25% for last 5 years.
Ghana – growing at an average rate of 10% due to its commercial oil
production.
Libya, Uganda, Tanzania, Ethiopia, Niger and Liberia – having expected
growth rate in a range of 7.5% to 10% per annum.
In addition to the growth fueled because of natural resource reserves,
development in consumer markets has also been observed in last decade
reflecting that the policies, regulations and reforms have been improving for
better.
Growth Drivers in Africa
Political Stability
Political unrest has existed in Africa for several decades. The continent still
holds the highest risk of political instability. According to African Economic
Outlook 2014 political tension and instability is the most important
contributor to investors’ interest wavering to other continents.
Despite political tensions, according to the Bloomberg Business News Report
in 2014, Eastern, Western and Central Africa will have the highest rate of
economic growth. Several countries like Angola, South Sudan, and Mali etc.
have moved on from tensed transition to relative stability revealing
remarkable potential contributing to economic growth and development.
Urbanisation
The demographic profile of Africa is transforming rapidly and one of the
major roles is played by urbanization. As mentioned earlier, African
population is relatively younger than the rest of the world and it provides a
treasure of opportunities if educated and regulated in the best possible
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ways. During 1990s, about 250 million people lived in cities and the number
increased during 2000s to more than 270 million city-dwellers. More than 50
cities in the African continent have a population of more than 1 million
dwellers and several among these cities are markets larger than notable
cities in Europe and America.
Increased urbanization has increased market size for several business
segments. It has created opportunities for not just international businesses
to grab a share of rising growth, but also created favorable circumstances
for local entrepreneurs to make it big.
Booming Trade and Lesser Aid
The net value of trade in Africa has risen
significantly over the last decade. The most
important of exports still include minerals and
oils and several economies are dependent on
imports. During the colonial period in Africa,
Europe was the largest trade partner of Africa
and it still is. However, value of African trade
with China is multiplying exponentially since last
few years.
Almost a decade ago, China only contributed to
3% of African imports and 5% of the exports.
Today, China is the biggest trade partner of Africa from Asia. Chinese
investors became interested in Africa because of the cheaper and better
quality natural resources available here. They moved their manufacturing
and other business operations from China to Africa to avail the remarkable
opportunities existing here. Increased inwards investment has resulted in
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more and better employment opportunities, technological advancement,
more tax revenues for governments and better consumer lifestyle in Africa.
According to the Bloomberg Business News Report in 2014, foreign
investment in Africa attracted $186 billion in 2013 and more than $200
billion in 2014. The net value of African trade, now, is three times of what it
was ten years ago, which has decreased dependency on financial and other
forms of aid.
Technological Advancement
Advancement in technology is another
major economic growth driver in Africa.
Availability of internet and usage of cell
phones is increasing, but it is still not
as common as in other parts of the
world. This industry holds great
potential to be unfolded. Since 2010,
there are more than half a billion
mobile phone subscribers registered
and the number is still rising. There has
been an increase in the fiber optic cable laid across the continent, in addition
to the telecoms operating.
The introduction and widespread availability of consumer technology is
playing a key role in countries being connected and operating more
effectively utilizing the resources in the most efficient ways. This has dug up
a deep treasure of opportunities for business sector allowing businesses to
reduce their operational costs through online marketing and e-commerce.
All the drivers of growth mentioned above enable us to make sure that
African nations are definitely on the road to growth and success. There may
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be a few occasional troubles and setbacks, but the estimated growth rates
are definitely going to be realised in the upcoming years. This will transform
the entire landscape of Africa.
Major Industrial Sectors in Africa
Agriculture and Farm Processing
Africa contains 40% of the global
cultivable land. Owing to the
highest percentage of global fertile
land in Africa, it should be the
largest producer and seller of crops
in the world. However, one of the
major African imports includes food
and it is not surprising because the
continent only has 10% of the global fertile land cultivated. The major
reasons of agricultural under-development include lack of investment, lack of
appropriate reforms and regulations, inefficiently operated distribution
networks and supply chains and insufficient fertilisation.
Despite these discrepancies, agriculture is the most important industrial
sector in Africa providing the largest share in Gross Domestic Product and
employing the largest number of people in most African countries. Based on
the industrial importance and unused land available to build a strong
agricultural foundation, many governments in Africa have this sector on
priority and regulatory actions will take place in coming years. This will open
up huge opportunities for businesses and entrepreneurs in the respective
countries.
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Infrastructure
Infrastructure is another sector holding potential
and opportunities for growth and success.
Decades of civil wars, poor development due to
lack of investment and poor management of
resources in the past have destroyed a large part
of the infrastructure. Many sectors including
transport, communication, and power and energy
are still not performing as they should. According
to the Economist Intelligence Unit, an investment
of $100 billion per year is required in the power
sector just in Africa.
A considerably large amount of developmental work has been done with the
help of investments coming from China. Now roads, ports and airports are
being built and railway and the power sector is being upgraded;
nevertheless, much is yet to be done which is creating entrepreneurial and
investment opportunities and strengthening existing business and trade
ventures.
Service Sector
Development of consumer markets is also providing fuel for service industry.
Commercial services and retail industry are booming. It has been estimated
that 90% of the African population has no concern with banking services. As
the countries grow economically, consumers will require bank accounts and
other services, and businesses selling to those modern consumers will
require larger business banking services. Thus, banking sector holds great
potential in coming years in terms of investment and business opportunities.
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As the banks and other financial institutions continue growing, exchange of
business equity and securities is expected to grow. Similarly, appropriate
government reforms and increased demand of skilled labor has brought
education and healthcare industry into the limelight. As mentioned earlier,
telecommunication is exponentially growing and providing a new arena of
opportunities. Altogether, developmental investments in banking, education,
healthcare, hospitality, tourism and telecommunication are making the
growth prospects as bright as never before for new and existing
entrepreneurs.
Consumer Merchandise Industry
Consumption patterns in Africa are similar to that in South East Asia and the
rate of consumption in African population is growing fast. This increasing
consumption also gives an opportunity for businesses to earn higher
revenues. Previously, there was:
unavailability of borrowing and credit facilities for consumers
scarce availability of shopping facilities
Nevertheless, the urban expansion and increasing incomes per capita has
initiated development of shopping malls and provided opportunities in retail
and intermediaries for consumer goods.
Despite the increasing demand of consumerism, manufacturing sector is still
weaker and much is dependent on imports. This problem is being taken care
of with the help of Chinese investors. Manufacturing setups and factories are
being built up creating a wider variety of goods than before. It is also
contributing towards the consumerism spiral by providing employment
opportunities, heavier pockets, improved lifestyle and in turn again
increased consumption. It is also strengthening the export industry in
addition to improving the inland lifestyle.
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Conclusively, there are innumerable opportunities for entrepreneurs. If
enterprise and entrepreneurial skills are propagated and aligned with the
suitable government reforms, Africa can be a golden bird lying golden eggs
under the umbrella of the above mentioned growth drivers.
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African Consumers Understanding the African Society
The key to success lies in understanding your target market and target
audience. If you are an entrepreneur from an African country, you might
somewhat understand people from your country, however, little would you
know about other Africans because, as mentioned in the previous chapter,
Africa is diverse in great many ways. As an entrepreneur your scope is not
confined within your own city or country and it would be limiting your
business growth if a pan-Africa approach is not adopted.
The same goes for
entrepreneurs and
businesses from other parts
of the world. As mentioned
earlier, business potential in
African countries is on the
rise providing opportunities
to not just the local but
international businesses too.
The world is catching up to
the untapped potential in Africa and one of the major countries to do so
include China. Many organisations from China and other countries are
relatively new to this region for business and investment and little do they
know about the consumers in this continent.
For large scale businesses, it may be easier to undergo extensive market
and consumer research before implementing their business models in Africa.
However, this may not be true for local entrepreneurs or small scale
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businesses to have consumer insights through expensive market and
consumer research. Ensuring successful development and execution of a
business plan requires an understanding of the consumers to be served and
the new reality of the evolving Africa market. These factors are key to the
success of any business in Africa.
African Consumer Market Trends
The basic macroeconomic indicators
show favourable trends and evolution
of consumers with increasing
consumption patterns. This has
become the driving force for
remarkable economic growth and
development.
It is surprising for many that, during 2000s, consumer goods and service
industry contributed to more than 45% of the total GDP in the continent
instead of natural resources. The most important African countries with
rapidly maturing consumer markets include:
Algeria
Angola
Egypt
Ghana
Kenya
Morocco
Nigeria
South Africa
Sudan
Tunisia
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Exponential Growth in Population
According to United Nations, Africa
will constitute more than 40% of the
global population by 2030. This
could have been a problem if
dependent population is forecasted
to be on the rise. It is estimated
that the highest rate of population
growth would be observed in
working age population bringing a decline in dependency ratio of the
continent. This would increase income per capita in upcoming decades
creating wider opportunities for businesses in consumer markets.
Demographic and Psychographic Changes
As mentioned earlier, The African population is relatively younger than other
parts of the world, due to lower life expectancy and higher birth rates. It is
estimated that more than 50% of the income is generated by people of 16 to
34 years of age. The younger generation has a different consumption
pattern than the elderly. For instance, young people are more tech savvy
and image conscious. They are more trendy and experimental in having new
experiences. They are also more literate and seek better education. This
demographic and psychographic shift in African societies is opening up
several opportunities for businesses and entrepreneurs.
Increased Urbanisation
Opportunities generated by increased city dwellings are discussed in the
previous chapter. It is estimated that spending rate in urban areas is
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increasing double-fold than in rural areas. This is due to better productivity
of urban labor which produces more income to be spent.
African Consumer Mindset
Quality and Brand Consciousness
Most of the businesses operating in Africa are known to produce low-priced,
low-quality products and branding activities are only in its nascent stages.
Business perspective is now changing because the market is transforming
rapidly. It is said that businesses operating in this way won’t last for very
long. This is because the consumers – younger in age and more trendy than
before – associate quality and brand image along with the product features
and benefits during their purchase decisions.
Quality has become one of the
most important factors in bringing
a product to the consideration set
of the consumers. Similarly,
branding is also playing a
significant role now. It is
estimated that more than 75% of
African consumers consider
recognizable brands to be of high quality and put their trust more in the
known names. Moreover, brand consciousness has also propagated a
willingness to pay premium prices and consumers are easing up on parting
with higher proportions of their income for better quality.
Consumers in many countries are patriotic and feel pride in being African.
This has led towards a wider acceptability of local and intercontinental
brands as compared to international names. It is a positive factor for local
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entrepreneurs as it can be a competitive advantage for local business and
helps entrepreneurs to build their brand against their international
counterparts.
Value-based Purchase Practices
African consumers want value for money. Products with superior quality and
high brand image are in demand, but price sensitivity goes hand in hand.
Rising incomes and increasing literacy rates have made Africans more
cautious with their choices.
Consumer behavior varies in different African countries. For instance, people
in rich countries like South Africa are less sensitive about prices and show a
relatively poor response to consumer promotions. However, consumers in
Nigeria and Ethiopia exhibit complex buying behavior and spend significant
amount of time searching for cheaper alternatives.
Contemporary Lifestyles
Consumers in Africa are, now, well connected with the world and believe in
staying up-to-date. They follow the latest trends and enjoy contemporary
shopping experiences. Urban Africans have evolved to be sophisticated
consumers like urban consumers in any other continent. This is true even for
those countries where urban development is relatively poor and slow. For
instance, consumers in Nigeria, Algeria, Kenya and Angola are also known to
place importance to shopping store ambiance and presentation of products
in addition to brand and quality in purchase process.
Technological Affiliation
Urban population in Africa has become accustomed to regular internet use.
It is usually observed that higher the income per capita, higher is the usage
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of internet. More than 60% of the people in urban Africa use internet and
own internet-interfaced-cell-phones.
Most common uses of internet include:
information search,
social networking,
videos and music streaming and
news reading
Most consumers find poor internet service to be a primary limiting factor
instead of cost in using internet regularly. Africa is estimated to be a
growing market for mobile phones with latest features and apps. Increasing
penetration of technology in consumer lifestyle is an important element in
communicating marketing offers with the consumers. It can be a cost
effective way to promote the product and increases market coverage,
especially for small scale entrepreneurs.
Saving-for-Consumption Culture
Savings culture in Africa is similar to that in Asia and other eastern parts of
the world. More than 80% of the population in Africa habitually saves
regardless of a bank account. Bank accounts are prevalent in urban Africa
and a trend of monthly savings can be seen among city dwellers. The
primary intention behind savings is found to be financing future expensive
expenditures. Urban people in Africa understand repercussions of borrowing
and consider it irresponsible. This African mindset can be an important
contributor towards the growth of consumer banking, and investment in
promoting consumption through hire purchase can build a loyal customer
base for many businesses.
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Media Habits
Television and print media are
considered to be the most
important source of information in
Africa. More than 80% of the
population still relies on these
media, however, other sources of
information have also gained
acceptance in recent times.
Buzz marketing and recommendation from opinion leaders and family and
friends plays a vital role in purchase decisions. Moreover, mobile phones and
internet, as mentioned above, have gained acceptability.
Impulse buying is extensive in Africa. Therefore, point-of-purchase
promotions have become significant and emphasis on enhancing shopping
experience and in-store marketing has risen.
While devising business models and marketing plans, consumer lifestyle in
Africa should be taken into account. This will affect the capability of your
business operations and increase acceptability of new products and services.
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Entrepreneurship in
Africa Tips and Tricks for Starting Your Own Business
Anyone can do business in Africa! But anyone cannot do just any business in
Africa.
This is one of the most important things
to be identified right at the beginning:
Which business is appropriate for me to
put my money into? There is no wrong
answer to this question and there is no
right answer to the question too. The
answer to the question can vary from
person to person. Every individual has a
different set of capabilities, skills, ideas,
aspirations, resources, contacts and commitment. The most suitable type of
business varies accordingly and depends on the person aspiring to be the
entrepreneur.
As an entrepreneur, you must take a good look at yourself and find out what
you can do, what you have been doing in the past, and what kind of
business makes sense to you. Selection of an appropriate business and
investing in a suitable stream of ideas depends upon internal factors like
your own being, personality and external factors like available opportunities,
market growth, favorability of economic indicators, lifestyle, wants of
consumers and your prospective customers etc.
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We have discussed several external factors including economic indicators,
industries, consumer lifestyles etc. in the previous chapters and it can give
you an idea about what type of business would be most appropriate. In this
chapter we will highlight internal factors like what it takes to be an
entrepreneur, and what you are supposed to do while beginning your
entrepreneurial.
Formulating a Strategic Business Plan
Remember that all businesses
should begin with planning and this
is the case with your
entrepreneurial venture too. It is
usually said: if you fail to plan, you
are actually planning to fail. Before
you pick up your phone to contact
prospective suppliers, banks, or
some prospective partner, you should have figured out what you are
supposed to do and the alternate course of action if something doesn’t go to
plan.
The planning requires devising a business strategy, which should help you
organise your thoughts and ideas and bring various possibilities and
alternatives to your consideration. It will also help you to connect your
passion and aspiration with practicality and finally, it would be the most
important tool to generate the required support.
Business Vision and Mission
Every entrepreneur has a big picture of what they want to achieve and so
should you. Business vision is an infectious dream to be fulfilled. The vision
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gives you a clear indication of your long-term direction, and transmits your
passion and company values.
Your vision, translated into a mission through a mission statement tells you
about what is to be done to achieve that greater good. A mission statement
is a statement of purpose. It describes: the nature of your business, and
who are your beneficiaries – the customers and what your business should
be in future?
It can be a difficult task for anyone to answer these simple questions. A
worthwhile mission statement guides almost every activity you are doing or
required to be done for the business.
Environmental Scanning and Scenario Analysis
Your business cannot exist isolated from its environment. The environment
influences business activities and in turn business activity influences the
environment. In order to understand the environment and scenario in which
business decisions have to be made, thorough scanning and analysis is
required to identify the best of business strategy that will support your
business. There are several ways to scan your business environment and
analyse the business landscape. The most common of these include SWOT
analysis and PEST analysis.
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SWOT Analysis SWOT is an acronym and it refers to: Strengths, Weaknesses, Opportunities
and Threats.
Strengths include internal aspects of what is good about you as an
entrepreneur and your business. It may include your access to capital, better
human resource, you skills and reputation etc.
Weaknesses are the internal aspects of your areas of improvement. It may
include problems like poor cash-flow, inappropriate location, high costs, high
labor turnover etc. Strengths and weaknesses are internal matters and in
your control. You can utilize your strengths to make a difference for your
business and customers and work out weaknesses that may harm your
performance and profits.
Opportunities and Threats, on the other hand, are external and not in your
control. Opportunities may arise on their own due to factors out of your hand
and include things you could do to fulfill you mission.
Threats include all the hurdles that may stop you or slow down the
achievement of success. It may include taxation, industry regulations, and
activities of your competitors, shrinking markets or any other external
environmental factor that may create problem.
SWOT analysis can give you insights on how to capitalize on the
opportunities with the help of your strengths and avoid threats to hamper
your accomplishments. You can also use the opportunities to work in a way
where you can overcome your weaknesses and turn them into strengths in
future.
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Following grid can be utilised to devise strategies with the help of SWOT:
Strengths Weaknesses
Op
po
rtu
nit
ies
Th
reats
PEST Analysis PEST is also an acronym and refers to: Political factors, Economic concerns,
Social issues and Technological aspects.
Assessing your business environment, and identifying opportunities and
problems that might arise from changes in these areas is how a PEST
analysis is conducted.
Favorable or unfavorable concerns originating from changing political,
economic, social and technological profile would significantly affect your
business strategy and action plan. The problems and prospects developed
from this analysis have to be prioritised according to the importance and
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Political Environment
•legislation regulating businesses
•labor laws
•tax policies
•investment policies
•copyright laws
Economical Environment
•industrial growth
•income per capita
•market size and growth
•purchase power and employment rates
•investment opportunities
•balance of trade in economy
Social Environment
•demographics
•psychographics and culture
•human development index
•consumer behavior
•social security and benefits
Technological Environment
•technological advnacement
•innovation
•research and development
•communication and information channels
•acceotacne of techology
urgency with which they may affect your business. The action plan
generated through PEST analysis has to be implemented at the right time to
make the most of the prospects and avoid any problems.
Changing aforementioned forces in the business environment should be
dealt with flexible strategies and action plan. There has to be room for
contingencies to be placed in because Africa is a continent that is changing
radically and bringing drastic effects on its inhabitants and landscape.
In earlier chapters I mentioned, how Africa is improving politically, growing
economic, augmenting socially and advancing technologically. The continent
is bent to generate more opportunities than problems. However, a keen eye
has to be kept on any probabilities that may force you to take undesirable
decisions as an entrepreneur.
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Basic Competitive Strategies Africa is known to have businesses copying each other’s strategies to
establish themselves in the market. This approach usually fills up the market
with companies offering similar types of marketing offers – goods, services
and none of the businesses turn out to benefit from it. It hinders businesses
and stagnates the market.
Differentiation is where the secret to business success lies. You should focus
on making your business and your goods and services different from your
competitors and above all to stand out. Make your customers know that you
are different and make them love your differentiation. The basic question
you should ask yourself: why would customers buy from me?
A model proposed by Michael E. Porter is most widely used by business to
define a clear market and competitive strategy. This model includes creating
a strategy based on price or quality in a broad or narrow focused market.
A Business may choose to serve wide customer segment on the basis of low
price/low quality product or high price/high quality product. Similarly, a
business may choose to serve a very clearly defined narrow market segment
with a low price/low quality product or a high price/high quality product.
Porter has also mentioned about middle-of-the-road businesses which do not
have a clear strategy out of the possible four choices. These businesses
usually copy the strategy from some competitor in the market which does
not have suitable alignment with their mission, objectives, capabilities and
resources.
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Action Planning
Entrepreneurs usually tend to fill their drawers with documents containing
plans and strategies, which are never substantially implemented to actually
see the sun of success.
Implementation is the most important part of being a successful
entrepreneur who not just dreams but knows how to turn their dreams into
reality.
Once you have developed a strategic business plan, it is time to devise a
stream of actions to be performed. This includes particular activities required
to achieve the objectives and milestones set. The activities designed should
include a step by step guide for:
What is to be done? And how?
Who would be responsible for certain tasks and activates?
What would be the timeline for task completion?
It is important to note that developing a strategy means long term planning;
however, the action plan includes the long term plan divided into short term
activities that lead you towards the accomplishment of your mission with
each step. For instance, a strategy may be devised for a 3 or 5 year period,
whereas the action plan may be annual or biannual set of activities to be
completed within the designated time period.
Business Plan Drafting
Explicitly writing the entire strategic business plan in the most convincing
way is critical for many reasons. The drafted business plan will be the
benchmark for you to check your performance and improve upon it if
required. The purpose of a business plan is to set the direction of your
business.
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Your business plan objectives should be to provide a document that clarifies
your ideas, and provides a reference point in times of difficulty or change.
Your plan is your business bible, and can help you avoid costly mistakes and
ensure long-term success.
Business plan includes issues like required capital, human resources,
process, techniques and products utilized to serve customers. Most
importantly it includes the forecasts and budgeting required to run the
business operations smoothly. Important component of a business plan
includes:
Business Name and Description: consists of business concept,
description of company, products, locations etc.
Ownership Details: includes names, positions, responsibilities of
owners, legal structure of the organizations and details of shareholders
if any.
Environmental Analysis: includes factors influencing business
activities, as mentioned above.
Marketing Strategy: consists of description of market segments,
target markets, competitive analysis and strategies, marketing mix –
product decisions, pricing, placement and promotion.
Operations Management: includes details about management,
human resource, administrative activities, production, procurement
and other supply chain partners.
Financial Management: includes projected forecasts about sales,
profits, costs, cash flows, debts and sources of finance.
Risk Management: includes categories of risk involved, cost-benefit
analysis, and contingency plans.
Action Plan: includes projected timelines, milestones etc.
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Business Plan Checklist
Business Description
Vision & Mission
Business Objectives
Environmental Analysis
Marketing Management
Operations Management
Financial Management & Budgeting
Risk Management
Action Plan
Control Measures
Contingency Plan
It is important to note that Africa is a continent with diverse cultures, as
mentioned in earlier chapters. Therefore, a standardised business plan for all
African countries will not work. Each country has a unique macroeconomic
and microeconomic profile, and will require custom tailoring of the business
plan. As an entrepreneur and business owner, you should look into each
country distinctively and devise a respective approach that should include a
separate set of customised objectives and ways of achieving those
objectives.
Financial Concerns
Financial markets in Africa are improving with increased inflow of foreign
investment over the last decade. Despite financial growth, banks are the
only feasible source of institutional finance for new entrepreneurs. Financial
advisory societies and other financial institutions do exist, but many are still
in their early stages.
Legal authorities regulate the Banking industry appropriately and the banks
service new entrepreneurs adequately, but not as readily as is often
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required. The regulations are laid to ensure the circulation of money in the
economy with efficient allocation and utilisation to generate more returns.
For any entrepreneur, a close relationship with their bank manager is critical
and may do wonders in times of need.
Borrowing
Borrowing requires collateral guarantees and interest rates in Africa range
from 5% to 20%. Borrowing from outside your own country is considered to
be easier and comes with lower interest than in your own country. It
provides other countries with an opportunity to have a stake in the country
of your operation, but turns out positive for the entrepreneurs in most cases.
Capital borrowed this way requires low interest payments, which can
contribute to relieving the financial burden on the business.
Moreover, as mentioned above, connections in banking sectors can also
provide an opportunity to receive lower interest rates and easier borrowing
conditions. This is because lack of electronic data availability usually devoid
banks from credit history and then borrowing can become dependent on
your personal relationships with bank personnel.
Pooling Resources
In addition to banks for generating required finance and resources, new
entrepreneurs also have an option of formulating or joining co-operatives.
Cooperatives are a “jointly owned and democratically controlled enterprise”
that bring producers and other small businesses together to create resource
pools. Joining forces with others in this way also increases buying and
bargaining power, which should reduce costs and increase profit margins.
Benefits of pooling resources and creating a shared platform include:
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Increased collective buying and spending power of businesses
Easy financing of revenue generating ventures
Easy access to required auxiliary business services
Shared ownership resulting in shared business risk
Reduced operational expenditures leading to higher profitability
Diminished need of borrowing for financing, which reduces interest and
collateral
Crowdfunding and Alternative Financing Sources
Crowdfunding is another unique way of generating funds for financing your
business venture. It refers to a crowd of people including friends, family,
supporters or anyone interested in your cause to donate funds for the
venture. Small amounts of money funded by large body of crowd can add up
to be a significant source of finance. The key to this financing source is
convincing or inspiring people to donate funds.
In Africa, a traditional and offline form of crowdfunding has existed for
centuries, and many modern entrepreneurs have used this method to launch
their businesses. However, the advent of technology has enabled online
crowdfunding, which can attract a larger global crowd for donations and
generate even larger sums of money. Successful crowdfunding and getting
people to fund your cause require either or both of the following:
A personal or emotional connection to make donating appealing for
people.
o Personal connection includes friends and family who would
donate funds because they believe in you and your passion to
make a difference.
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o Emotional connection includes supporters or even strangers who
may find it easy to connect to your venture, in addition to friends
and family.
A benefit that you can offer the people for donating.
Successful crowdfunding also requires the ability to effectively market the
venture to potential donors of funders. It is somewhat like presenting your
ideas to potential investors showing them the returns (benefit you can offer
in this case).
Dealing with Debtors
Turning receivables into cash may become a nuisance if not dealt with
smartly. Poor debt ethics is an attitude developed over decades of
dependency on aids and debt being frequently written off in the past.
Common business practice includes a credit period of 30 days across Africa.
In order to avoid bad debts, a business is recommended to:
Promote cash sales by creating win-win campaigns for the customers
and clients.
Delay payables to suppliers reducing cash outflows.
Increased inflows and reduced outflows raises working capital and business
operation can run smoothly.
There may be some trouble in the beginning with such practice until your
business generates a reputation. Customers might be reluctant to pay
upfront in cash and suppliers might be reluctant to supply. It becomes
critical in this case to be innovative and convincing enough for both the
parties to oblige. Once your business has established a reputation and has a
track record, negotiating feasible credit terms with your suppliers shouldn’t
be as difficult. The same applies with customers. When customers are
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convinced with the quality of your product and benefit of being associated
with your business, they won’t show the same hesitation as in the beginning.
This requires time and a great deal of patience, but no one said that
entrepreneurship would be quick and easy.
Purchasing and Procurement
As mentioned in earlier chapters, African culture relies heavily on personal
relationships and referrals than taking risks with strangers. This is the
reason why long term relationships with suppliers work well for businesses
and shifting from one supplier to another for trivial matters and insignificant
sums of money and payments is sometime not a great idea.
From personal experience, I would advise that you devise a clear
procurement process with transparent payment schedules. Ask your
suppliers for quotations and re-quotations to make sure both parties are on
the same page. New quotation requests may also allow you to enjoy cost
reductions due to favorable changes in certain external environmental
factors.
Marketing Management The main concern while marketing your business and products should be the
availability of new channels of communication to enable connections and
interactions with potential customers. It is an advantage to the
entrepreneurs and businesses that Africa is a close knitted society with
strong bonds in their families, relatives and among friends. This overcomes
the problem of inadequacy of media to connect to the customers.
Approaches like buzz marketing, viral marketing streams and customer
recommendations and testimonials can do wonders for businesses.
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Usually the businesses follow traditional media for marketing purposes.
Though, the incidences of consumers moving to new channels of
communication is increasing, businesses can access a wide range of
customers through traditional media and marketing efforts.
Media activities are predominantly controlled by state. However, freedom of
expression is growing and restrictive regulations are loosening up. This has
opened up a new arena of opportunities for businesses to communicate
themselves and their practices with the consumer markets.
Advertising
Broadcast media is the most commonly utilized way to communicate with
customers. It includes:
Television – is used by more than 80% of the African population for
browsing information. There is a wide variety of state-governed and private
channels which can be used for advertising. It is cheaper and covers a large
target market.
Radio – having wider market coverage than TV, is more affordable and now
usually available in mobile phone free of cost. It is also more efficient
because of the FM stations targeting specific cultures and subcultures. Radio
offers a more focused targeting; however, businesses are not known to
prefer radio over television. Usually a combination of both is utilized for
advertising.
Print media – through newspapers is also widely used. Print advertising is
relatively expensive and print quality varies from country to country. Nigeria
and Kenya are known to have been strongest in terms of print media.
Outdoor media – a relatively new way of marketing, has taken urban Africa
by storm. There has been an exponential increase in number of billboards
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around the cities. Being expensive, only large businesses and organizations
use this media commonly.
Public Relations Activities Public relations is in its growing stages and provides a cheaper alternative
for corporate image building. The advent of corporate social responsibility
has strengthened this approach of marketing. Press releases and
announcements, social awareness programs, charity and donations,
sponsorships and event presence etc. are considered to be the game of large
organizations and rarely utilized by small business.
Investor relations and lobbying is virtually non-existent in most of the
countries. If certain government officials are targeted for any reason, they
expect to be part of profit and bulky slices of the cakes are to be shared.
Being low profile and an indirect approach to change thinking and
perceptions is usually well suited.
Online Marketing
The penetration of internet has grown in the last decade opening new
avenues for entrepreneurs and business. Internet was not widely used for
selling and marketing previously in Africa. However, the consumers of new
era have become more tech savvy and rely more on internet for information
and credibility.
Marketing through websites increases market coverage and improves brand
image to be more trendy and updated. Innumerable web skills are available
for local entrepreneurs for development of their websites and online
operations.
Email is also a developing marketing device. Surprisingly direct mail
marketing works well in Africa as compared to other parts of the world.
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However, spam is absolutely not acceptable and interruption during online
hours is highly not appreciated because internet facility is relatively
expensive in Africa for consumers.
Social Media Marketing:
As social media grows to
influence most aspects of
business, so is the case with
Africa. Increasing penetration
of internet in African society
has also transformed the way
people socialize and this has
generated another
opportunity for entrepreneurs
and businesses to market their businesses and products locally and globally.
Social media is a place where people share their personal space with the world and
now marketers can offer their products and services to people inside and outside of
their personal space. It is now considered the most cost-effective and most
targeted form of marketing in current times.
In order to incorporate the usage of social media in your marketing strategy, there
are a few things that need to be understood:
Keep in mind the objective of your social media strategy.
Understand your target market.
You need to have interesting content that will be interesting for your
audience
Content has to be written or presented in an appealing or pleasant way.
Establish your goals early on, and target metrics must be set.
Establish realistic expectations for your campaigns
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Social media is not a magical place like ‘Harry Potter’s World’; therefore a magic
meteoric rise in your sales figure and the popularity of your business will not occur
in a sweep of a wand.
Social media is a platform to connect with your customers on a personal level and it
will allow you to communicate, and hopefully influence conversations with your
customers. This is something that was unimaginable not so long ago. Your social
media channels will keep you updated, intimate and connected with your
customers.
You can start with any of the popular social media platforms as they all provide you
with almost similar features and benefits to be utilized for marketing and promoting
your business. In general, there are a few standard steps that you must complete
in order to open a social media account. These include:
Sign up and create your business page.
Select a profile picture. It is important to note that your profile picture
reflects your image, quality of your work and your products and services.
Keep updating your picture frequently enough to appear up-to-date.
Write an ‘About Us’ story. This piece of writing is a great promotional tool
and marketing message for your customers. It will generate an entire aura
about your business. Do not forget to use a ‘you attitude’ while mentioning
about your business in order to avoid alienating your customers. Your
customers must feel their objectives, needs, wants and preferences are being
met and that your business is the best match for them.
The secret to a successful social media campaign is to stay active, current and to
connect with your customers on several levels. Keep on publishing relevant and
quality content. A static social media profile reflects a static business, and your
profile will be lost among the millions of other businesses.
Remember that continuous customer connection is what social media is for.
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Buzz Marketing
Africans tend to rely more on friends and family while making purchasing
decisions; therefore, buzz marketing is the most efficient and cost effective
tool for small scale entrepreneurs.
Generating personal recommendations requires a lot of effort and follow-up
from customers. Word-of-mouth marketing is difficult to initiate and control.
Even the slightest of errors while dealing with customers may lead to
negative word-of-mouth.
The secret to successful marketing based on personal recommendation of
customers lies within being a known and respectable name. Consistency in
product and service quality and delivery excellence is the secret ingredient.
As an entrepreneur, you should be more visible and directly connected with
your customers.
Personal Selling
Personal selling has the same underlying philosophy as buzz marketing.
Customers trust you more if you are connected with them directly. Formal
demonstration of product performance during personal selling is difficult
because:
It is expensive.
There is a lack of customer database.
Customer turnaround ratio may be less.
Informal door-to-door marketing may work well and significantly depends on
the sales representative. Sales representatives with wide social circles can
be significant for deeper market penetration, and can often position products
in areas where conventional marketing may not work.
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Personal selling requires well-trained and competent sales staff. Training and
development of sales staff would be needed and it may incur expenses in the
short run
Well-trained and motivated sales staff can easily cover up the cost by
converting sales. However, managing sales staff requires you to be vigilant
to avoid underhand practices and miscommunication that may result in
customer dissatisfaction.
Pricing Strategies In previous chapters I mentioned
that African consumers are value
oriented. It means that quality
products offered at suitable prices
will be widely accepted. Though,
the purchase power is rising,
people are unlikely to pay inflated
prices for products that are
perceived to be of low quality. Therefore, when determining prices for
products and services, the customer’s perception of value has to be taken
into account.
Pricing is also important while competing in the African market. Price
competition is more prevalent than non-price competition because of lack of
differentiation. Therefore, businesses should develop product profiles with
high quality/high price variants and low end/low price options too.
Culturally customers in some African countries habitually haggle over prices
and do not agree to any purchase deal without a discount. Therefore, it is
common practice to raise the prices preciously and provide a price cut at the
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time of purchase. It is important to avoid undesirable losses in revenue and
keep the customers coming back.
A few pricing strategies that can be used include:
1. Cost-plus pricing – addition of fixed profit markup on cost
2. Price skimming – high prices to develop prestige and image
3. Penetration pricing – low prices to establish and penetrate markets
4. Psychological pricing – pricing according to consumers’ perception of
product
5. Promotional pricing – reducing prices to achieve short term sales
objectives
Human Resource Management An able and motivated labor force is a
power house for any business. In
Africa, the economic indicators have
shown that people willing and able to
be employed are available in far more
numbers than in any other continent.
However, a business should be
careful while employing people. Workers and managers should not be
employed based on a degree or certificate of education, rather competency
should be tested before employing people. Qualifications should only be used
as a means to begin looking into people for employment.
In Africa people place great emphasis on education and it should be.
However, there must not be a compromise on the required levels of
experience and expertise with regards to certain job posts.
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The right blend of qualification and experience should be sought. Fresh
candidates moving on from academics to the real world pose the greatest
challenge for entrepreneurs. They are less productive and need training. On
the contrary they are more energetic and tend to have less personal
commitments and restrictions, so are ideal for any startup that requires staff
to work long or unsociable hours.
Recruitment
During my time in business, I’ve quickly learned a very important lesson –
the best way to ensure your business strategy is implemented is to hire the
right people into your company. A great recruitment process should typically
include:
Job Analysis
It refers to studying the tasks to be performed by the new worker. Job
analysis is easy for an existing job post where another employee is currently
or has previously occupied the position, so the roles and responsibilities for
such a position would already exist and require only temporal modification.
However, recruitment for a post that didn’t previously exist would require
some thought in designing the job profile.
Job Description
It is a drafted summary of the job analysis where all the roles and
responsibilities to be performed, performance standards, code of conduct
and management expectations from the employee are listed. It helps in
generating a person specification and tells the employee and management
how the work will be carried out.
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Person Specification
This can also be called a Job Specification and lists the requirements for a
job. It is a description of the kind of person required to fill the position. It
enlists the required qualifications, experience, skills, aptitude and personal
characteristics of the worker. It is highly important to shortlist the best
candidate from the pool of applicants.
Job Advertisement
To find the best candidates, it is essential that the job is promoted through
suitable channels of communication. In most of the African countries,
advertising jobs in newspapers and websites have become common. It
allows for a larger pool of candidates to apply for the job and increases your
chances of finding great people.
Conducting Interviews
In response to your job advertisement, several written application will arrive.
As an employer, you are required to study all the applications carefully and
call the shortlisted few candidates for an interview. The interview meeting is
one of the most crucial steps in the recruitment process. It is vital for the
candidate as he may get a source of income, but it is equally vital for you as
selection of a poor candidate can be costly.
Conducting interviews allows you to take a look at the physical appearance,
mannerism, attitude and abilities of the candidates. It also presents the
opportunity to cross-reference any elaborate claims that might have been
written in the application. Ultimately, during the process you are also able
be able to find out if the candidate is the right fit for the job and your
company.
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Interviews also have their limitations as they only provide you with a
preview of the candidates’ past, and you might not be able to determine how
they will perform in the future. To avoid this issue, many businesses
outsource their recruitment process to professional recruiters, who, with
their personality profiling, predict the suitability of the candidate. As this is
a costly exercise it is often an option that can only be considered by larger
companies or higher-level positions.
Training
In Africa, the willingness of employees to learn and grow is generally higher
than what you would find in other parts of the world. It is previously
mentioned that Africans value education and believe in moving ahead with
time despite whatever setback they have faced in the past.
Job Analysis Job Description Job Specification
Job Advertisement
Application Shortlisting
Interview & Selection
Vacancy Filling Training
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It is often observed in most African countries that school graduates regularly
save for personal development, learn new languages, practice computer
operating and take control of their personal development for the job market.
In recent times, trained and able people are not hard to find. It is an
advantage of being an entrepreneur in Africa to have a wide pool of willing
people. You can custom-train people according to the requirements of your
business. This technique will motivate and boost the morale of your staff,
and the bonus is that in-house is fairly low cost. However, there are also
options for external training. A wide range of training services, facilities and
institutions are available for getting your workers trained. Governments in
many countries are also supportive in this regard and provide subsidies to
businesses organising training for professional development of their
workforce.
A few benefits of training your workforce include:
Increased motivation and productivity
Reduced overall costs and increased profitability
Better customer service and increased revenues
Reduced employee turnover
Increased acceptability of new technologies
Employment Laws Regulations for employment vary significantly in African countries. Countries
like Tanzania, Mozambique and Ethiopia have very strict employment laws
which are favorable to workers. Namibia and Zimbabwe have carefully
designed judicial system to deal with employment issues. Countries like
Uganda and Kenya have relatively relaxed employment laws but do provide
basic labor protection. Other countries have a fairly advancing legal system
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for human resources. As a rule of thumb in almost all countries, it is the
responsibility of the employer to take care of the workers’ rights.
If employment issues are dealt fairly and transparently, it can be positive for
the business itself. More able workers become willing to join your
organization. Motivated labor force increases productivity to greater lengths
and market reputation of the business attracts more customers and revenue.
This creates a win-win situation for both the business and workers. On the
contrary, if your organisation is stuck in and employment disagreement,
workers and their representatives can makes it very difficult for your
business to run smoothly and could impact your profitably through bad
publicity via trade unions.
Trade Unions
Most African countries have operational trade unions. Their power varies
greatly from country to country. For instance, Tanzania has severely strong
trade unions with sufficient political power to bring the organisation to a halt
in case of a disagreement. On the other hand, Kenyan trade unions are
merely existent for the sake of it.
It is important to have good relationships with union representatives.
Conflict Management
An important function in Human Resource Management includes dealing with
disputes. Grievances always spring while managing conflicts because no one
likes to compromise and conflicts can’t be resolved without both parties
being flexible during negotiations. You should be vigilant about the
grievances propagating, especially in terminating a worker’s services, no
matter how justified it is.
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The Local labor agency is
usually the first place where an
aggrieved worker would land for
support. Please be aware that
a lot of these agencies work on
a commission basis, so it can be
in their interest to escalate
trivial cases.
You can protect your business from the troubles of local labor agencies by:
keeping an up-to-date knowledge about local labor regulations
having a transparent and well-communicated labor policy
getting the agreements signed at the time of providing employment
Most businesses usually avoid the involvement of law agencies and police
even in case of theft or fraud. This is done to protect the business from any
possible negative publicity. As an entrepreneur, it is in your best interest to
know the law and regulations required when dealing with human resource
issues and carrying out conflict management accordingly. This will allow you
to be safe from undesirable consequences.
Entrepreneurial Self Development
Communication Skills
It is important for any entrepreneur to understand or have the services of
someone who is fluent in the major languages of the country you are
operating in. Language is a great tool that brings people closer to each other
and in a society where most matters can be dealt with through relationships
and communication - language can be an essential tool.
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For business purposes, English and French are widely used and acceptable in
most African countries. However, accents and levels of understanding vary in
every country. There are always chances of misunderstanding; therefore, it
is very important to follow a few basic rules:
Use clear and comprehensible words.
Avoid complex sentence structures.
Avoid using passive voice.
Directly address people and don’t be impersonal.
Adopt a conversational way of communication.
Collect required information before communicating with people.
Presentation Skills
The ability to deliver information in
the easiest and most attractive way
takes you far ahead in the business
world. It also applies to
entrepreneurship in Africa. If you
can present your business plan to a
bank in a convincing way, it
significantly increases your chances
of securing the capital you need. It is important to explain your objectives
and projects in an inspirational way. Presenting your ideas is an art and it
can and should be practiced and learnt.
Most people are intimidated and stressed when conducting presentations in
front of an audience. However, presenting your ideas with confidence and
justification can fuel the success of your business.
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A good presentation requires preparation. Organising the content and
delivering it in a sequential way, where easily understood ideas come first
moving on to the complex ones later can make a big difference.
Time and hard work is required for preparation of presentations. The more
you prepare, the more confident you will be during the presentation.
Do not attempt to address an audience extemporaneously. Use visual aids
and show people what you mean. Be precise and to-the-point. Use
technology if you can. Computers can provide you with the ideal user
friendly interface where making presentations is very easy and more
attention grabbing. Be ready for all eventualities and don’t depend on
chances. It would take a few presentations for you to get comfortable with
facing audiences. Once you get a hold of your content, there is no looking
back.
Time Management
As an entrepreneur, you will find every passing day to be shorter than
previous. Pressure will increase as the business takes off and you are
expected to do more in less time.
Entrepreneurs tend to spend a lot
of time planning and not doing or
testing. Meetings are another
place where a lot of time is
spent. Managers spend their
days fighting with unforeseeable
tasks arising out of the blue.
Entire days are spent tackling
such issues instead of spending time efficiently and effectively.
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In order to be time efficient, first, determine the objectives to be achieved
and actions to be taken. Generate a priority list of what is to be done first
based on urgency vs. importance of tasks. Urgent tasks require to be taken
care of sooner because it is about deadlines. However, important tasks
contribute more towards achievement of your goals; therefore you should
not be far behind in completing those tasks right after completion of the
most urgent tasks.
Computer Skills
Technology eases up the tasks to
be done and saves a lot of time
too. It increases productivity and
efficiency. Improving your
computer skills require a
considerably good typing speed
and familiarity with as many
softwares as possible. You should
also develop an understanding of connectivity and networking. There are
professional services available in this regard; however, it would require
expenditure increasing cost.
To save costs, I would advise using YouTube as there are some fantastic
video tutorials that I’ve successfully utilized to learn new skills.
General Self Development
Being an entrepreneur is a courageous career option. You will learn new
things every day. Improvement is what makes you different from others.
The faster you learn, the quicker you can gain an advantage over your
competitors. Keeping your mind open for learning and new experiences and
having this attitudinal change is difficult to achieve, but it is not impossible.
© 2015 Terser Adamu, MyNaijaNaira.com. All rights reserved in all media.
52
You cannot achieve success and grow your business without improving your
own abilities and personality. Here are a few general guidelines for
continuous self-development:
Pay attention to yourself – your appearance, things you enjoy doing
and have fun. It will keep you fresh and focused.
Reading is the input for your mind to produce output. Equip yourself
with the latest information and stay connected.
Open up yourself for experiences you’ve never had before.
Be tech savvy, learn about gadgets and try to use them whenever
required.
Take care of your health – eat healthy and do some exercises.
Stay inspired.
Corporate Social Responsibility Corporate Social Responsibility is an idea relatively new to Africans. In the
past, a lack of appropriate regulations spread several unethical practices,
resulting in corruption seeping into the business world and infrastructure.
This scenario is changing now. Improvement in regulatory framework is
forcing businesses to be more ethical and transparent with their practices.
Taking care of corporate social responsibility makes business operations a lot
more disciplined; it also attracts a wider base of customers due to their
increased trust in the business. It improves your corporate image and can
make your dealings with suppliers, distributors, other trade partners and
customers easier and more profitable.
Corporate social responsibility requires a business to be socially active in
addition to the ethical practices. It positions the business towards
community service and makes them realise the real needs of the community
they operating in.
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Being involved in community service, environmental conservation, labor
health and welfare, sponsorships to the deserving and needy bring the
business under a new light. It enables the business to capitalise on the
power of community relations – a distinguishing feature of traditional Africa.
It can generate desired support from community for the business opening up
new horizons of opportunities without having to slip cash filled envelopes
under the table.
However, some entrepreneurs feel their obligations more intensely towards
their business partners and shareholders. Some business owners may
belong to the opposite school of thought and desire to use their funds to
make more profits for the stakeholders. Whatever perspective you follow,
you will have to pay attention to corporate social responsibility at some point
in time.