EDITORIAL ENTREPRENEURSHIP
Entrepreneurial leadership: top tips
Entrepreneurship is a driving force in South Africa’ s economic landscape, but with high failure rates, aspiring business owners must equip themselves with the right skills and strategies. To overcome the challenges and thrive in this dynamic environment, it’ s essential to develop clarity, resilience, and secure funding. Here are key insights on how to achieve these critical elements.
By Shada Francis, entrepreneur and international leadership coach
As an entrepreneur and international leadership coach now living in South Africa, I have witnessed firsthand the dynamic landscape of our economy and the critical role entrepreneurs play in its growth. With approximately 2.8 million entrepreneurs in the country, as reported by the Global Entrepreneurship Monitor( GEM), they contribute significantly to job creation, economic development and innovation. Despite this potential, the reality is sobering: studies from the University of the Western Cape indicate that 70-80 % of small businesses fail within the first five years. I strongly believe that understanding the factors behind this high failure rate is crucial for those of us looking to thrive in this environment.
The importance of clarity and accountability
A common reason many entrepreneurs falter is a lack of clarity in their goals. When I began my journey, I realised the value of a well-defined vision. Clarity helps prioritise tasks, track progress, and stay focused. Additionally, having a coach to provide accountability makes a huge difference. As a coach, I help refine strategies, offer insights, and keep you on track, building resilience in the face of challenges.
The reason behind business failure
The South African Bureau of Standards( SABS) highlights several reasons why many businesses do not survive beyond their initial years:
• Lack of business planning: Many entrepreneurs underestimate the importance of thorough market research and financial planning. A comprehensive business plan can make a significant difference.
• Inadequate management: Effective leadership is vital. Poor decision-making and insufficient management skills can derail even the most promising ventures.
• Insufficient funding: Entrepreneurs often find themselves unable to secure the necessary funding or mismanaging their finances, leading to cash flow issues.
• Market competition: The competitive landscape can be fierce, and without a unique value proposition, it becomes difficult to attract and retain customers.
30 SA PROFILE www. saprofilemagazine. co. za