Strategies for Driving Success in Entrepreneurship

It is early in the new millennium that I was competitively initiated into consultancy. The very first engagement was as a part-time business counselor for an SME Clinic that focused on uniquely contributing to entrepreneurship development. The brief entailed interviewing entrepreneurs of varying ethnic and racial backgrounds, who were owner-managers of firms of varying sizes, in different sectors of the national economy.

The objective was to determine their ongoing business challenges and formulate customized solutions for overcoming the same, in each case.  Despite a rich accounting and financial management background, from which I was somehow being attracted, this engagement presented a life changing experience.

The formulation of holistic solutions to business challenges followed a process akin to that of a doctor/patient – no wonder the title of business counselor. Since then, I have continued formulating and delivering numerous training/consulting solutions for not only the SME sector, but also corporate entrepreneurships, as well as other organizations, operating in the national economy. Uniquely, the solutions borrow from the global perspective, but still recognize the prevailing local/regional environment.

The same year of being initiated into consultancy, I conducted an international research on SME/Entrepreneurship development. It focused on a case study of entrepreneurs, who were members of a business club that belonged to one of the leading banks. This research compared the global entrepreneurship trends with the local scenario, thus yielding invaluable lessons for all the stakeholders.

That probably influenced an invitation to present the research findings in an international entrepreneurship conference in Nairobi, whose theme was “Fostering SMEs and Entrepreneurship in Africa.” Thereafter, the research findings and recommendations were published in the Business in Africa Journal.

One major achievement of the research was to establish that entrepreneurship growth is largely impaired by marketing challenges. That is contrary to the common notion of limitations in working capital. In fact, out of the 18 challenges brought out by the respondents, 30 % were related to marketing; 25% to financing and working capital, whereas 12% were attributable to the products and services offered, just to highlight the first 3.

Ideally, business theory recognizes products/services as part of the marketing component. Based on the research therefore, a combined proportion of 42% of the responses, revolved around marketing challenges. The situation may not be any different today, as has been continually experienced during consulting/training engagements. Moreover, the marketing component is an integral part of the competitive forces.

On the other hand, where most people conduct similar businesses, therefore selling related products and services, incidences of market saturation become highly prevalent. Supply will almost always outstrip demand. Even when the businesses/products are differentiated through branding and other innovations, it becomes just a matter of time before the forces of change set in, to distort the comforts.

Matters get worse when the different players settle on similar business models, especially in a highly competitive and globalized environment. The eventuality is diminished profitability, therefore slow growth or even decline.  Frequently, the reaction is to seek increased working capital injections, most often through borrowing from the financial sector. These injections are most ideal for business, when inclined towards growth, rather than continued survival.

Meanwhile, insights on military strategy can be extremely exciting for business. This is even more so, upon realization that we are all at war, with the forces of change, whatever the vocations or business models. It is even more challenging in business, where the fundamentals are never static.   Further, these forces of change are unpredictable, just like enemies faced by the military. In our case, they will largely confront us unexpectedly, and in various forms that may include a mix of changes in customer needs, business rivalry, new entrants, related products and suppliers’ reactions, which  complicate the whole marketing equation. Even worse is that these competitive forces are sometimes ruthless. So, how exactly do people re-act to the forces?

Most often, we find ourselves driven by Charles Darwin’s theory of survival for the fittest, as aptly demonstrated by occurrences in the animal kingdom.  We hassle endlessly endeavoring to get the best out of perceived scarce resources. In a highly competitive and globalized environment, not everybody is assured of opportunities of enjoying these resources. The perils become deeply rooted as physical international borders continue presenting fewer hindrances, to the competitive forces.

Apparently, we need to clearly understand our re-actions to change dynamics, the reasons supporting respective actions notwithstanding. Perhaps, we shall then re-position ourselves and probably overcome or smoothly adapt to these persistently volatile distractions. Incidentally, they present opportunities for progress as well.

One way of beating these competitive forces is adopting a strategic thinking process. The fast step is to avoid the attrition strategy, which involves directly confronting the competition. Indeed, dealing with same products and similar business models are great ingredients of this strategy. Instead, one can adopt a franking strategy, which involves working around the competition.

Keroche Breweries comes to mind as a great example of franking strategists. Their liquor business involved manufacturing wines and spirits for many years. Upon gathering enough resource might, they joined and confronted the highly formidable leaders in rolling out and selling normal beers, thus spoiling the market equation to their advantage.

Another form of strategic thinking is to defy conventionalism. One of the greatest heavyweight boxers of all times is none other than Mohamed Ali (earlier known as Cassius Clay). This boxer was renowned for tormenting his opponents both inside and outside the ring. An incisive analysis by Author Robert Greene indicates that Mohamed Ali, never followed the then known conventional boxing styles. Instead of posing with his hands held below his chin, he kept them hanging loosely on his sides.

That way he could connect unexpected blows to his opponents, who were oblivious of the attacks. More still, Ali’s legwork supported by terrific speed was unprecedented. Despite his weight, he could dance around the ring rarely giving his opponents any moments of controlling the fights. This then unconventional, but perfectly acceptable behavior ended up wearing off the opponents. At the same time, it made them angry and occasionally desperate, leaving Ali to finish the fights at his terms.

Another great strategist was Hannibal, the great military general from Carthage (present day Tunisia). Despite his small armies, Hannibal was brave enough to imagine conquering the mighty French army. But, unknown to the opponents, Hannibal could unleash armed men on the back of charging elephants. The beasts were then unknown to participate in war efforts. Using these beasts therefore, could instantly beat the opponents psychologically and finally into defeat.

The thing is, you cannot successfully continue confronting the forces of change using conventional tactics and/or strategies. Even worse is that once you innovate a new tactic, it becomes conventional, whenever it circulates in the public domain. You need therefore to continually get back to the drawing board.  The more unconventional the strategies are likely to be, the higher the chances of being continually ahead of the competition. Worry not about being unconventional, because that will soon be conventional as others continue benchmarking from you. Thus, formulating new tactics and/or strategies will no doubt form part of your war chest in this dynamic competition.