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Are You Suited to Entrepreneurship

Is Entrepreneurship Dying In SA

No says Darlene Menzies – but we have some lessons to learn.

Darlene Menzies

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It is critical for any economy to maintain a positive level of growth.

A key factor in this growth are the efforts made by entrepreneurs who are willing to take the plunge and risk investing their time, money and skills in starting small businesses.

SMEs are in fact the building blocks of the economy, with a surprisingly high number of SMEs providing employment in big economies across the globe – for example China sees 84% of employees in SMEs, Germany 62.7%, Japan 69%, and France at 63.9%.

Related: Sage Supports Government’s Call To Grow SA Entrepreneurship

What is the situation elsewhere?

Darlene Menzies, established entrepreneur and CEO of SMEasy and finfind, recently visited Kenya to contribute her knowledge and experience at Dot Finance Africa. While there, Menzies made some keen observations regarding Kenyan vs South African entrepreneurship.

“Everyone you meet in Kenya is an entrepreneur and has some kind of business interest. People working full time in corporates have their own businesses on the side or are involved in investing in small business ventures if they can’t give their time. They don’t see full time employment as a security as the labor laws aren’t as strictly regulated as they are in SA – so you can find yourself out of work anytime.

“There is a genuine spirit of entrepreneurship there, it’s the norm; if you don’t have a business of your own you’re the exception not the rule. It’s so different to SA where only nine in 100 people start their own businesses. Here having your own business is typically perceived as being second best to being employed…generally people feel that only if they can’t find a job or if they lose their job should they consider starting a business.”

Where are all the South African entrepreneurs?

According to a recent article in The Times, titled ‘Where have all our entrepreneurs gone?’ The Global Entrepreneur Monitor South Africa report, released in May 2016, states that the number of South Africans interested in starting a business has halved since 2010. The decline has been particularly sharp among black people and women. 

“The question we must ask is why there is this decline and what can we do to address the issue?” says Menzies.

Related: The Era Of Entrepreneurship

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Mindset

She believes “we need a massive mind-set change” while the article states that government policy is a ‘culprit’, access to finance and lack of training and education are also significant contributors to the problem.

While Menzies agrees that the realities of red tape experienced by South Africans can hinder our entrepreneurial growth she maintains that the same is in fact experienced by the Kenyans for example. The only difference is that the Kenyans are not deterred by these hindrances and actively seek solutions. 

Access to finance

The access to finance problem has a solution for example here in SA. Services such as finfind, a revolutionary, free one-stop solution for access to finance for small business can greatly assist.

Another tool to help entrepreneurs starting a new business is SMEasy, the easy-to-use, online business management and accounting software that is specifically designed for entrepreneurs entering the small business market.

With this in mind, a significantly positive observation from the report is that ‘South African entrepreneurs are more innovative than their counterparts in the rest of Africa and have a better global orientation with at least a quarter of revenue coming from global sales.’ So there is definitely hope in restoring South Africans commitment to starting small businesses.

“While the figures are down from the previous year, it’s definitely not the end of the road for entrepreneurship in SA” says Menzies.

Take the risk

“South Africa has moved forward in leaps and bounds over the last two decades and in order to maintain this growth we need to focus on giving our talented entrepreneurs the proper policies, access to finance, education and training, ensuring we can continue to grow. Also, encourage your children to start businesses, teach them to risk and be courageous, to persevere through hardship.

Related: Eva Longoria And Social Entrepreneurship

“Teach them that failure is a normal part of life and should be embraced not avoided. Foster a mentality of overcoming and breaking through.  Help raise future entrepreneurs – the true builders of our economy “concludes Menzies.

Darlene is a tech innovator and serial entrepreneur. She is the founder of the award winning online accounting software SMEasy as well as Finfind, an online access to finance solution for entrepreneurs recently launched by the Minister of Small Business Development. Darlene won SA Innovation Entrepreneur of the Year Award in 2010 and has also been recognised by Swiss-based Stars Group as a future Global Leader. Darlene believes that technology should play a leading role in the fight against poverty in Africa. She has been invited to speak in Zurich and London on harnessing technology for Social Change. Darlene works alongside Government, Business and Civil Society to address youth unemployment and to develop small businesses in South Africa. Her life motto is “to live an extraordinary life you must resist an ordinary approach”.

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Are You Suited to Entrepreneurship

(Podcast) Being An Entrepreneur Is Painful

There is a pain attached to running your own business. It’s time to discuss how tough it is – address the reality and you might just be one of the successful few.

Nicholas Haralambous

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Entrepreneurship is fun. But on the whole, running a business is hard. Far fewer business owners succeed than fail. Statistically your business is going to fail. Those are the hard numbers.

There is a pain attached to running your own business. It’s time to discuss how tough it is – address the reality and you might just be one of the successful few.

Listening time: 5 minutes

Related: (Podcast) Playing To An Audience Of One

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Are You Suited to Entrepreneurship

3 Dangerous Entrepreneurial Myths You Need To Ignore

This terrible advice won’t actually get you anywhere.

Entrepreneur

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Entrepreneurial Myths

We’ve all heard the numbers about how hard it is to build a long-lasting business. While there are many factors at play to get there, without effective marketing and sales a business cannot survive.

Unfortunately, there is a multitude of dangerous and destructive marketing advice swirling around the heads of vulnerable entrepreneurs. Like vultures seeking their next meal, “gurus” pontificate nonsense that these hard-working business owners follow, only to discover that what they tried doesn’t work.

Often, once the damage is done, it is too late for them to do anything else about it.

If you want to not only survive, but thrive, here is some of the terrible advice you need to start ignoring:

1“You need to be everywhere”

I’m sorry, but how do these people sleep at night without the use of narcotics? “Experts” spew out dribble to make headlines saying you need to get on Snapchat, get on Periscope, do YouTube Live … be everywhere! They’ll say you need to get on this platform or that social media network. Oh, and use LinkedIn Live! And make sure to post on Instagram three times a day and Facebook twice a day. And don’t forget those Facebook Lives. Make sure to do them every day.

Related: The Journey Of Entrepreneurship: How The Tough Get Going

ACK! Just writing that paragraph stressed me out. How the heck are you supposed to be on all of those channels, never mind doing it all effectively, and still run your business? Of course you can’t. And you shouldn’t. (Unless self-torture is your thing, in which case have at it. There are books about that, but I’m not giving any titles because I’d have to Google them and then I’d be retargeted by the ads and that would just be gross.)

It is impossible to spend even half an hour on each major network and still get any work done. Forget about focusing on measurement, profit and return on investment. They don’t mention that on purpose, because then these crazy-pants suggestions would really make no sense. But, then these “experts” would stop making the headlines, so they keep serving up spoiled advice for the poor folk who chow down and then get sick on it.

Don’t allow yourself to fall victim to their plots of deception. Demand strategies that value your time and produce results in a significant and measurable way quickly.

2“It takes money to make money”

cash-flow-management

I didn’t take the easy way out. I am part of a group of scrappy entrepreneurs who have a lot of hustle and heart and little/no/negative funds. I didn’t come from family money, and the big banks certainly weren’t lending to businesses like mine.

The only way I was going to get a big pile of cash was if I won the lottery. And since I’ve only played about four times in the last decade, the chances of that happening were slim. What I had to find was the same thing you most likely want – a solution to predictably bring in customers when there is no marketing budget to play with.

3The Schmo-bags

The worst are who I call the “Ferrari Marketers.” They rent a sportscar for an hour or two, hang out in front of it and then sell us shiny object strategies that they haven’t even used in their own business.

Related: 6 Timeless Strategies That Drive Successful Entrepreneurship

They are abhorrent, hideous and dangerous. Not only are they crooks stealing the money of the people who are seeking a solution from them, but they may prevent really talented people who have a gift/service/product/offer to share that can help someone else from ever reaching them.

Did I mention they suck?

But, once you discover a game-changing system, you are responsible for implementing it. You can’t be distracted by shiny objects any longer.

As Jack Welch says, “Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion.”

Don’t allow yourself to be enticed or distracted by fads or the “latest and greatest/not greatest” new social media strategy, channel or tactic.

Once you uncover how to truly get results, be strong-willed and stubborn. Repel any idea, strategy or initiative that requires you to keep spending money to make money. If you keep throwing dollars and time at a goal, hoping and wishing that it will work, yet not tracking or measuring the results and scaling accordingly, then you cannot expect results.

Start measuring, tracking and demanding results from your time and money, rising above others and landing in the successful minority that thrives instead of survives.

This article was originally posted here on Entrepreneur.com.

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Are You Suited to Entrepreneurship

5 Mindset Changes You Must Make When Going From Employee To Entrepreneur

As one prominent author wrote, “Entrepreneurs don’t finish when we are tired. We finish when we are done.”

Sujan Patel

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Thousands of people dream of the day they can quit their jobs and escape the 9-to-5 life. In fact, Gallup found that 87 percent of the employees it surveyed worldwide did not see themselves as engaged.

But quitting your job and starting your own business is only half the battle. You need to prepare to be an entrepreneur. Besides getting your finances in order and having a plan in place, you also need to prepare your mind.

Your habits dictate your success, and if you’re still stuck in that 9-to-5 mindset, your endeavors will fail. You must adopt an entrepreneurial mindset and start thinking the way the world’s top leaders do.

Being an entrepreneur is very different than being an employee, and the way you envision it may be completely off base. Here are five changes you must make to your thinking in order to prepare yourself for the realities of being an entrepreneur.

1Train your mind to think outside the box

Once you leave your office job, you’re no longer confined by corporate life. That means you need to open your mind to new possibilities – possibilities that may not have been an option in your old life.

Related: For Shatty Mashego Success Lies In Maintaining A Positive Mindset

In an article for TIME magazineWarren Buffett, CEO of Berkshire Hathaway, said, “People will always try to stop you doing the right thing if it is unconventional.” In short, others may not see your vision, but you can’t let that stop you. You need to be creative with your business, offer something new and be different to be successful.

2Develop both short-term and long-term vision

Albert Einstein once told the New York Times, “A new type of thinking is essential if mankind is to survive and move toward higher levels.”

That new type of thinking needs to be focused on a strategic goal. You must have a vision for your company – an idea of where you’re going and how you’ll get there.

As an entrepreneur, you are the leader of your company, and your team members are looking to you to show them the path to success.

What’s your plan? You should be able to see the big picture as well as all of the steps it will take to reach your main goal. Then, you must communicate that vision to those on your team and ensure they each understand their individual roles in the plan.

3Let it all fall on your shoulders

stress-on-shoulders

Becoming an entrepreneur can be scary. Your success is now completely dependent on the work that you do. You can no longer fall back on a salary or benefits.

As an employee, if you had a bad day at work, you were still paid your salary, regardless. But as an entrepreneur, if your business isn’t successful, you won’t make any money. Plus, you now have others relying on you for their livelihood.

Ryan Farley is a typical example of corporate employee-turned-entrepreneur, quitting a fast-paced finance job to start lawn care marketplace LawnStarter Lawn Care. “I was used to working extremely long hours in the corporate finance world,” Farley told me. “I thought that would have conditioned me well, but nothing can prepare you for this amount of stress.

“It’s pretty common for founders to have the stress get so bad it affects your physical and mental health,” Farley continued. “But you have to press on, and you’re better off for it.” Prominent entrepreneurs like Brad Feld and Mark Suster, have expressed similar sentiments.

Working for yourself also means you need to be your own motivator. You no longer have a boss hounding you to get your work done. You need to stay organised and focused, and you’re going to have to be comfortable with hard work and long hours.

Related: 8 Mindsets That Will Set You On The Path To Success

4Get ready to be a jack of all trades

As an entrepreneur, you can’t say “That’s not my job.” Every job is your job now. There’s no one else to pick up the slack but you. You need to make sure everything in your business continues to run on track, and that may mean doing work you aren’t used to doing. You may need to be the accounting department, IT, marketing and more in addition to leading your company.

Entrepreneurs wear many different hats and are constantly learning new skills and working hard. If you think becoming an entrepreneur means you get to sit back and kick your feet up, you’d better stick to your day job.

As entrepreneur, author and investor Robert Kiyosaki has written on Twitter, “Entrepreneurs don’t finish when we are tired. We finish when we are done.”

5Be flexible, focused and positive

Attitude is everything in business. You can’t let challenges get in the way of your dream. Entrepreneurs need to be optimistic and stay focused on their goals. Your passion must drive you.

Related: An Entrepreneurial Mindset – Why And How To Develop One

As Steve Jobs once said in an interview with the Smithsonian Institution, “Unless you have a lot of passion about this, you’re not going to survive. You’re going to give it up. So, you’ve got to have an idea, or a problem or a wrong that you want to right that you’re passionate about; otherwise you’re not going to have the perseverance to stick it through. I think that’s half the battle right there.”

This article was originally posted here on Entrepreneur.com.

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