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The Entrepreneurial Revolution – Moving from alchemy to science.

Anthony Farr

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The growing necessity for fast tracking our economic development in South Africa and the pivotal importance of entrepreneurship in achieving this has led to recent calls for an entrepreneurial revolution in this country.

This sense of proactive urgency is to be encouraged, yet such calls can be undermined when we lack a clear understanding of the tools for such a revolution.  Part of this is symptomatic of a broader entrepreneurship challenge. We see its powerful benefits, but after 40 years of intensive research we have not made significant progress in unlocking the secrets of the entrepreneurship phenomenon.

This tension is captured in a recent comment where Raymond Ackerman concluded that the entrepreneur is the modern alchemist, making something out of nothing.  This simple description captures both the power associated with entrepreneurial culture yet also reinforces the mystery surrounding its process.  And it is this notion of mystery that continues to hinder the full potential that entrepreneurial thinking and action can bring to society.

The entrepreneurial domain

It is normally seen as the domain of those particularly gifted and brilliant, outside the reach of the ordinary man.  The process itself is also not well understood, resulting in it being seen as a phenomenon rather than something that can be given more broad application. Yet if we reverse a few hundred years, this so called ‘great man’ explanation was exactly the situation where science found itself in the sixteenth century.

Before the intervention of Francis Bacon, scientific endeavour was the preserve of those special people, equipped with unique talents, who were able to divine the patterns of Nature.  Scientific progress was accidental, circumstantial and largely dependent on the breakthroughs of a select few.  In short it was a phenomenon.

Then Bacon initiated the process of codifying the actions of scientists, leading to the understanding of empirical evidence and experimentation that became the building blocks of the scientific method. In so doing he launched a scientific revolution with profound implications.

The simplest illustration of the benefits of the scientific method is that at the time of its introduction we travelled in horse carriages at a few kilometres per hour along the ground and now a mere two hundred years later we can travel at thousands of kilometres per hour into space.

The expansion of science has been so dramatic that according to Resnik, there are more scientists alive right now than have ever lived in the last two and a half thousand years of human history.   Today, the scientific method is taught indiscriminately.

Not only is it taught to potential scientists at graduate and postgraduate levels, but everyone at every level, and especially starting at a young age, is taught it as an essential mindset and skill that is carried through, and forms part of the core of all education.   The scientific method therefore gave us the tools for the scientific revolution allowing us to harness the potential of Nature.

Finding an entrepreneurial method

What if the key to unlocking an entrepreneurial revolution was to similarly see entrepreneurship not as a phenomenon but as a method? Entrepreneurship would then be released from the confines of a sub-category of economics and elevated to the level of a social force.  In Entrepreneurship as Method: Open Questions for an Entrepreneurial Future, Professor Saras D. Sarasvathy and Sankaran Ventakaram postulate exactly this – that entrepreneurship should be seen as a method comparative to the scientific method.

The impact of codifying entrepreneurship in this way has the potential to be as significant in the field of human endeavour as the scientific method was in the field of Nature.  Sarasvathy predicts that the entrepreneurial method will achieve no less than unleashing the potential of human nature.  This paradigm is still at an early stage of exploration, but already the implications are significant.

First, everyone can benefit from the reasoning and problem solving skills that emerge as part of this method.  (It would become necessary to introduce its logic as an essential part of basic education)  Secondly, it creates a powerful tool that can be more intentionally used to take on large problems at the centre of progressing humanity.

But if experimentation was the tool of the scientific method, what is the tool of the entrepreneurship method?

Sarasvathy stumbled upon a possible answer after completing a study on 27 expert entrepreneurs.  Despite the perception that we live in a commercial world dominated by prediction (a world where the aim is to use causal or rational thinking to achieve a previously identified goal), the findings of this study showed that the dominant logic of these individuals was effectual thinking – the exact opposite of causal thinking.

Focused solutions

Effectual thinking is a mode of thinking where possible new ends are imagined using a given set of means.  An illustration of the difference between causal and effectual  thinkers is seen by the examples of conquerors such as Alexander the Great  creating his empire out of the known world (causal) in comparison to explorers such as Columbus discovering the new world (effectual).

Building on the base of effectuation, the entrepreneurial method explores a method of human action that starts with what you have available, both in terms of your internal and external resources before then iteratively moving forward, taking into account evolving uncertainties and building partnerships to co-create a new future.  The implications of these tools for South Africa are particularly exciting.

Part of South Africa’s entrepreneurship struggle is due to a simple lack of belief.  In the 2011 Global Entrepreneurship Monitor Report, the percentage of the South African population who perceive that they have the capabilities to be entrepreneurial was just under 43%, which is nearly 10% below the average of our peer countries. If the entrepreneurial method inculcates an understanding that the process starts with our given means, however limited those means might be, it will act as a powerful catalyst to counter the current lack of belief in our abilities.

Second, a key finding in the initial studies around the entrepreneurial method is that entrepreneurial action is largely about interaction.  This is in contrast to the historical focus on the role of the individual or the team, rather than the importance of the interactions between them and the numerous stakeholders involved in the entrepreneurial journey.

While this might seem a small shift, an orientation towards negotiation and relational exchanges with a more sociological bias as a basis for value creation, plays directly to the inherent and proven strengths of South Africa’s history – a heritage that a cursory glance at the categories of our Nobel Prize winners immediately demonstrates.

Intentional revolutionary thinking

This requirement for the tools of a revolution was illustrated again in an unexpected context recently when Waleed Rashed, co-founder of the April 6th Youth Movement that led to last year’s freedom revolution in Egypt, met with a small group of Allan Gray Fellows.  Besides the inspiration of interacting with a 29 year old who already has ‘liberating his country’ on his CV, the abiding insight from his story is how intentional they were in understanding how the tools of social media, understanding the mindset of their target market and creating channels for those aspirations would ultimately ensure that the “revolution would no longer sit inside you, but be taken out and made realities.”  Whether it be in science, freedom or entrepreneurship, revolutions require tools.

A picture of large scale adoption of the entrepreneurial method fast tracking our economic progress by leveraging the power of entrepreneurship as a social force is a compelling one.  It is a picture of the entrepreneurial revolution – a revolution finally activated with the right tools.   No longer need we deal with the mystery of alchemy, instead focusing on the certainty of science, applying an understood logic and thinking process to improve the state of the country.

Anthony Farr, CEO of the Allan Gray Orbis Foundation, is motivated by an unyielding belief in the power of education and an entrepreneurial way of thinking to empower the future leaders of tomorrow in driving the country’s economic transformation. Farr believes that the economic empowerment of the next generation through entrepreneurship is more critical than ever in South Africa. Visit www.allangrayorbis.org for more information.

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Business Landscape

Load Shedding – How To Stay Productive

We’ve all already had massive interruptions from load shedding and it’s not going away anytime soon so, instead of being caught out each time and losing productivity, let’s stay steps ahead of the outages and make sure that our productivity stays where it should be…

Warrick Kernes

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They say that prevention is better than cure and with load shedding the best cure is to have a generator, backup power inverter or UPS (Uninterrupted Power Supply) set up to kick in when the lights go out. If you don’t have this in place then you will want to understand when you will be affected and how to minimise the impact of this on your work.

The first step is to know when your area is scheduled for load shedding. You can find out by downloading the free app called Loadshedding Notifier which tells you when Eskom has scheduled areas to be turned off. We’ve already seen that the lights don’t always go out when they are scheduled to do so but it’s better to be prepared than to be caught in the dark.

Many entrepreneurs rely on their normal routine to drive their productivity but once you know that your routine is going to be interrupted then it’s time to re-plan your day. You could plan to get up earlier to avoid traffic or to start work super early so that you get through your priority work before the power goes off.

Arrange your to-do list so that you can get through the highest priority and income producing activities first and then you can get around to the rest of your work. Prioritising your daily actions becomes even more crucial when you have limited time. You can also plan priority work for when the power is out; just imagine how many sales calls you can make when not being interrupted by emails.

If you work from home check if the neighbouring suburbs will have power so you can go work at one of the cafes. Most cafes have free wifi but it can be slow and these networks aren’t always secured so it’s preferable to have your own 3G dongle so that you don’t rely on others for internet.

A few more load shedding quick tips:

  • Work in the cloud so that all your work is backed up automatically and not lost if you suddenly lose power.
  • Unplug devices when the power is out to avoid damage from potential surges when power is restored.
  • Keep your electronics charged up such as; headphones, cell phone, laptop battery, powerbank, 3G dongle.

If your computer battery dies or you run out of things to do then create a list of work that you and your team can do which doesn’t require computers or internet. An impromptu team building lunch or a good old brain storming session could prove incredibly valuable or if your team isn’t up for that then the storeroom could probably use a clean.

If all else fails don’t panic as you can always just go for a walk, meditate, spend time with the kids or go to the gym to clear your mind.

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Business Landscape

4 Tips To Create A Great Conference / Workshop / Event In 2019

Being able to host a great workshop or event is an essential skill for anyone in creative and innovative businesses. Your event will have a major impact – that is guaranteed. However, whether it is a positive or negative impact depends on the how well the event was put together and executed.

Revel Africa

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Your business is fantastic. You work with amazing people, and your industry is dynamic and evolving. There are so many exciting ways available to you to share your good stories: social media, podcasts, videos, live streaming, emails. But the trend we’re seeing of more workshops and conferences is the most exciting, and effective. Why? Because people still do business with people, and face-to-face still has more impact than anything digital.

Being able to host a great workshop or event is an essential skill for anyone in creative and innovative businesses. Your event will have a major impact – that is guaranteed. However, whether it is a positive or negative impact depends on the how well the event was put together and executed.

Here are 4 top tips to create and host amazing events this year

1. Purpose

Identify the purpose of the event. Is it to train clients or future clients on the latest trends in your industry in a bid to position yourself as the subject matter expert? Is it to bring a large multi-campus business together into one space to unite them and refocus and energise them? Is it to bring creative minds together to solve a problem? Answer these questions and you will know if you need a small, vibrant workshop, a large, slick event, or a creative team-building conference.

Plus, having a really clear understanding of why you’re doing this event is the best way to deal with the stress of putting it all together. Anchor yourself to the core reason behind the event, and it will not only propel you forward through the process, but will also make a lot of the decisions easier to make as you go.

2. Prepare

If you are going to host an event, then embrace the reality of late nights, money stress, volatile emotions and extended periods when your nearest and dearest, your social life and your free time take a back seat. There’s no nice way of saying it – an event is a huge responsibility and one that will take up a lot of your time.

The best advice we can give you is to find an event planner straight off to help you put your best foot forward at your event and deliver on your vision for the event. That way, once they’ve done all the heavy lifting, all you have to do is arrive on the day of the event looking fresh, fabulous, and stress-free and allow yourself to revel in its success. Your event planner would have handled everything for you, from haggling with suppliers, to sourcing the best locations at great prices, and should even handle the headache of RSVPs. In the Western Cape and Gauteng we highly recommend Revel Africa for bespoke events and innovative ideas that fit your budget.

Whether you use an event planner or not, you will need to think these through.

  • Decide on a theme – A theme helps to unify your ideas, source expert speakers, and market to the right people. Pick something simple, catchy and on topic. You can even go so far as creating a mission statement for the event to keep your efforts focused, such as, “We care a whole lot about this topic / industry / situation and we couldn’t find a conference that matched what we want and need. Our goal is to bring something that is welcoming and inspiring, where the talks are fresh, and the snacks are even fresher. We’d love you to join us and celebrate the people (including you!) who make this industry great.”
  • Prepare a budget and make bookings – Knowing what your budget is will help you set the price for delegates if it is not an in-house event. Here are the most common items you need to budget for, and book:
    • Venue – Once you’ve found a venue within the price and date range that you had in mind, you can fix the date for the event.
    • Transportation – For out-of-town delegates.
    • Catering – Events can rise and fall on the quality of the food provided. Shop around for this one and request taste-tests.
    • Speaker – Start thinking about speakers very early on, as all the good ones get snapped up fairly far in advance, so if you want your top choices, secure them as soon as possible. For interactive staff sales training we recommend Mark Berger, and for your MC / Inspiration needs, we recommend Warrior Ric.
    • Activities – Think of icebreakers and activities to get people out of observation mode and into participation mode.
    • Marketing – If this event is for external delegates, invest in a good marketing agency for social media, printed marketing collateral, banners, brochures, website updates, and paid media.
    • Team members – Select, and brief the team that will help you with this event.
    • Invitations – Once you have a date, venue, and keynote speakers, you can send out your invitation. Managing RSVPs and payment effectively is critical. Quicket can be a useful payment portal for events.
  • Daily emails: Once the conference has started, send out a daily email outlining the itinerary for that day. Keynote speakers and times, social events, meal plans, highlighted sessions, even the daily weather report can all help the attendee feel more prepared and connected when they reach the event. You can use Mailchimp or any other of the great bulk mailer platforms available.
  • FAQ: An FAQ is great for questions that come up again and again. The answers can be published on an event FAQ page on your website and the link sent in the daily mails. Questions like:
    • Are sessions be recorded? When will they be available?
    • Is parking available?
    • What’s the Wi-Fi password?

3. Productivity

Be mindful of who is attending the session and whether or not the session’s content is suitable to them. A talk that is too basic, too advanced, too demographically narrow, or too far off-topic for the conference – no matter how famous the speaker is – will bring the session’s productivity to a grinding halt.

Another great thing to consider is self-directed co-ordination as a great way to meet new people or to connect with people you’ve known for a long time. Using a Twitter hashtag, a Slack team, a Telegram group, are a great communication channel for the event to ensure attendees easily find information about how to network with each other. If your event is more technical, you could also create a wiki during the event to enable sub-communities to self-organise on the day and share content.

When it comes to how productive the sessions are, as the event planner it might be tempting to participate in the day’s events. However, as a facilitator your role is to remain objective and observe. You can’t facilitate and participate at the same time. Keep scanning the room to sense the mood and energy; keep discussions on track by asking great questions; constantly keep the end goal in mind. Typically, a good facilitator or event planner is often invisible on the day of the event.

4. Participation

There are many creative ways to structure the day’s proceedings to facilitate maximum participation.

  1. Campfire sessions – These start like a traditional presentation, with a speaker at the front of the room presenting an idea to a group of people. However, after 15 or 20 minutes, the presenter becomes the facilitator and shifts the focus of discussion to the audience, inviting comments, insights and questions from those around the room. Campfire sessions allow attendees to drive their own learning and share experiences with others, which also assists with networking.
  2. Birds of a Feather (BOF) – BOF groups are small, informal gatherings of people with a common interest or area of expertise who join up to work together, typically over lunch or during the morning coffee break. You can suggest BOF groups for attendees to join or they can create their own. Sessions don’t have a pre-planned agenda and are aimed at encouraging discussion and networking.
  3. Lightning Talks – As the name suggests, lightning talks give speakers no more than 10 minutes to make their presentation. Because speakers don’t have time to waffle, the presentations are to the point, which keeps audiences focused and energised. A window of between 30 to 60 minutes is usually given to lightning talks, which can allow for up to 12 speakers to be heard.
  4. Silent Disco Talks – This is where many speakers present at once within the same room, while delegates – wearing wireless headphones with channels that they can switch between – choose who they want to listen to. Delegates enjoy bite-sized pieces of information and are always tuned in to something that interests them.
  5. World Café – This simple, effective, and flexible format is ideal for hosting large group discussions. Start the first round of discussion with groups of four to six people sitting around a table, and present each group with a question. After 15 minutes, each member of the group moves to a different table. Once all rounds have been completed, key points from each table are presented to the whole group for a final collective discussion.
  6. Storytelling – This is where speakers tell real-life stories that help illustrate or enhance themes in the conference. The story should contain a beginning, a middle and an end, with characters and plots, like adversity and triumph. Stories should be 15 minutes long, with 10 minutes provided for Q&A afterwards.

Here’s to hosting many great workshops and events this year.

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Business Landscape

What Is Business Insurance And Why Does Your Business Need It?

Your business asset insurance cost will go up if you add on more items, but this is common with all insurances. Not sure why you need it? Find out more information below.

Amy Galbraith

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You need to protect your business against all eventualities. This means that you need to have the ability to pay for any physical or legal damages that might occur, such as a client claiming that they were injured while on your property or an asset being stolen from your property. And business insurance in South Africa is a necessity if you want to apply for business finance, as the bank will need to see that your assets are insured.

You might be wondering now, as a business owner, “What is business asset insurance?” It’s insurance which insures your assets, such as vehicles, electronic equipment, and your business premises. You can also opt to have business car insurance if you have a company car that is used by your employees. Your business asset insurance cost will go up if you add on more items, but this is common with all insurances. Not sure why you need it? Find out more information below.

It protects your assets

Whether you are a small business just setting up or an established company, you likely have assets that are important to keep your business functioning. This could be a business vehicle that you use to transport goods to clients or computers that are vital to your employees.

If you do not insure these assets, you will need to pay for repairing and replacing that might need to happen out of your own funds. And this can become extremely expensive, depending on what has been damaged, lost or stolen. Another reason why you need business asset insurance is that there might be a natural disaster or “act of God” that occurs, such as a fire or flood, which could damage your equipment, meaning that it needs to be replaced.

It protects you from legal issues

Some of the problems that businesses face include legal issues, which can become costly and tiresome. These issues can be handled easily and efficiently if your business insurance to help pay for legal fees and settlement fees with the client or employee who is issuing the complaint.

In the case of being sued or taken to court, it is useful to have a business insurance offering available to help you. If you do not have this type of insurance, you will soon see that legal costs can become exorbitant. Legal issues can also reflect negatively on your company in the eyes of other clients or employees, but having business insurance can help to clear up any problems effectively and without any drama.

Your business will not shut down due to incidents

If your business vehicle is stolen or if the equipment is damaged, this could lead to your business closing for a period while you try to recoup your loss of money. This could lead to you losing even more money which could be highly detrimental to the success of your business.

Your insurance company will be able to compensate you the lost funds, granted that the issue is covered by the insurance cover you have in place. This will allow you to stay open despite the fact that you are experiencing difficulties due to equipment not working or other problems. You could even opt for emergency assistance if there is a natural disaster which will keep you, your employees and even your property safe from damage.

Your employees will be protected

Your employees are the backbone of your company. And, as such, you should have protection in place for them. You should have workers’ compensation coverage in place so that should your company lose money or be unable to pay your staff, their needs will still be covered.

And business insurance will protect them from any possible lawsuits that could be lodged against them by clients or customers. It can become highly expensive to pay for these out of your own pocket. Protecting your employees protects your business, so be sure to invest in insurance which offers workers’ compensation as well as disability cover to protect your employees.

Think smart for your future

Having business asset insurance and business insurance is important to both small businesses and large corporations. This is because your assets will be protected from theft and damage, which can be costly to replace and repair. You will also be able to weather any legal storm that might come your way, as well as being able to protect your employees and their welfare.

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