Entrepreneurship is the perfect mix of applying theory (gained through formalised education) and intuition to address the challenges that may hamper the success of a business.
While the theory is critical, studies have shown that the practical application of that theory often lets entrepreneurs down. A recent article by entrepreneur.com points out some of the most common challenges that impact the success of a business.
Procrastination
Almost every decision that an entrepreneur makes carries some level of risk. Assessing this risk appropriately and taking a measured approach to address it is often the best approach when making a decision.
However, the current business environment is heavily defined by risk, and the pace of change is significant. Scientists show that there has been more change in the last five years than the combined change of the preceding 50 years. While there is value in assessing risk and taking a measured approach to decision-making, procrastination can negatively affect a company.
Nike made the bold decision in 2016 to stop producing golf equipment (golf clubs) to focus on its main line of business, sports apparel. The company then invested heavily in digitisation to cater to growing consumer demand. In 2021, the company announced it broke its multiple-year sales target in 2020 alone as the world gravitated towards online shopping platforms. This shows the value of bold, early decision-making.
Taking on too much
Cutting costs is one of the mantras of success in the modern business operating environment. The easiest way to do this is to decrease your staff complement and take on more roles yourself. This may also give entrepreneurs a false sense of control that they are in charge of every aspect of their business.
However, the current nature of business risks is far too great for one person to address alone. This is especially true for technology-based companies where disaster is one phishing email or one data breach away. Entrepreneurs must be comfortable enough to let go of some control in their business and hand it over to trusted employees who are just as invested in the business’s success as the entrepreneur.
There are multiple ways to carry out a task and achieve success. As soon as entrepreneurs embrace this, they will find that their actions are more impactful and that the company will be well on its way to achieving its goals.
Proper assessment
There is a difference between risk analysis and analysis paralysis of a challenge that may or may not have an impact on a company.
This is where theory and practice need to work together. Entrepreneurs need to be very clear about a challenge that will negatively affect a company and will benefit a company once it is addressed. Approaching the challenge with the wrong mindset will cause significant damage. This decision often requires entrepreneurs to remove emotion from their decision-making as much as possible. The situation that Nike was presented with was very risky at a time when there was no indicator that there would be a mass migration towards online retail platforms. Yet the company board was confident in their risk assessment and knew their investment would eventually benefit the company.
Emotion needs to be removed from corporate decision-making as much as possible. This may prove difficult as the emotional investment in a business may be as significant as the financial investment.
Focus on a well-rounded education
Educators worldwide are facing a massive infliction point and have to redefine the educational narrative to offer value to their students. There is a growing demand for educators to prepare graduates for the world of work beyond the qualification that they receive.
As a leading provider of distance-based education, MANCOSA believes in preparing graduates and entrepreneurs for the future world of work. In addition to the many courses that we offer that address unique aspects of entrepreneurship development, marketing, innovation and financial literacy, graduates can now access our Honoris Career Centre, which focuses on developing the practical skills that an entrepreneur may need to succeed. Additionally, they will also have access to our Ignite Programme, which places qualifying entrepreneurs with companies and entrepreneurs investing in developing South Africa’s future captains of industry.
Successful entrepreneurs can look beyond the qualification they receive and make informed, intuition-based decisions that will benefit their businesses. This can only happen if there is a shift towards focusing on the development of practical skills as well as theory.
