Have you ever wondered why many businesses fail in Africa? Statistics have shown that many newly established businesses in Africa do not witness their 5th anniversary. This, however, is caused by many avoidable reasons.
In this article, I will share my personal opinion from experience and give you four reasons why I think businesses, especially startups, fail in Africa, particularly in The Gambia. For every problem, there can be a proposed solution. I will, therefore, give a detailed explanation of how to overcome these problems whenever they occur.
A lot of business ideas seem to be so lame and are based on other peoples’ ideas. We ought to be more creative and efficient in the manner we lay out our ideas into action. Mr. Njie of TAF Africa global once said on our GASAM “Bantaba” that young entrepreneurs are so quick to print C.E.O on a business card rather than working harder and everyone wants to be a boss overnight. This fact is indisputable!
As I have mentioned in one of my articles entitled “Kah leh effanna” meaning self belief, we ought to be more patient to see our success come through. Now, let's see some of the reasons why I think businesses fail in today’s world.
1. Lack of Clear Definition of The Business Objectives
Most small business owners at the commencement of their operations have little or no idea of what they are going into. As a result, they will not be able to have a clear definition of the business objectives. They're doing business not out of a pre-planned idea but rather out of either being unemployed or just to make more money. One might argue to say that the ultimate goal for doing business is to make money, but it goes beyond that. It is about solving problems, setting the bar higher, and being more productive to our various economic activities. Whenever an entrepreneur has no clear objectives for his/her business, it is like a ship sailing far in the ocean without a compass to locate its destination. That ship will end up getting lost. An entrepreneur with a good vision stands out from the rest.
The solution to this could be not rushing into any business without clearly stating what the business objectives are, but to ask yourself this question: "what do I want to solve or achieve in doing this business?" This question can be your guide whenever you are about to lose focus of your work. Don't do it for the money, do it to solve problems then money will eventually come as a by-product. Put your focus on making your product the best out of the rest and be product-oriented. With this in place, success will be achieved.
2. Sentimental attachments in your dealings ( Family)
The sentimental attachments here could be bigger than you think and it is a good recipe for failure. We all know the fact that The Gambia is a small country and 90% of your customers are people you know: friends and family. As an entrepreneur, if you keep all your dealings with your immediate customers on those family lines, your failure is imminent.
The best way to overcome this could be to detach sentiments in your dealings with your customers. I know this could be difficult in The Gambia but it's not impossible. Make this your motto perhaps it could help “ Business is business.” No matter who you are dealing with, keep it as professional as possible.
3. Inconsistency
Most startups fail due to being inconsistent to continue their work. There are a lot of business ideas that could be very beneficial to society but we're too lazy to work on them. Inconsistency is normally out of a fear of failure or procrastination. You reading this, I am putting it to you. Don't be afraid to fail if Muhammad Jah could achieve all he has, then why not you. Believe in your idea and be consistent with it. Don't give it up. You will excel. Just believe it!
4. Marketing
Marketing is a very broad subject. It involves the promotion, price, place, and product (4ps). These are the foundation for a successful business and as startups, we need to work a lot on the Marketing aspect of our businesses. The ultimate aim of every business is to make as much profit as possible. And that's only feasible when you have a ready market to place your products in. Marketing isn't just about putting up Facebook ads, Whatsapp status, and so on. It's beyond the listed above. It is about how to get people to fall in love with your brand and to get into their subconscious minds. Marketing has a lot to do with making the right decision for your consumers and I'm sure you might tend to doubt that but yes, that's it. Do you ever sit and ask yourself why is it that anytime I use a Facebook app, I will see adverts on stuff I might like. It's because Facebook is targeting you indirectly. They know what you want, when and how you want it.
Success in marketing is possible when you work on your brand very well. Get the right team and set your target very high. It's possible to reach your goal with the right team.
AUTHOR: SALIFU SONKO
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