Some say entrepreneurs are born, while others think they are made. Whatever the case, entrepreneurs have many common attributes. They are dissatisfied people with a great inner awareness and ruthless, some may say selfish disposition. They are not afraid of investing in themselves; they realise that they are the most valuable company asset and cherish their sense of achievement.
Prof. Naren Gupta
Entrepreneurs are full of motivation and courage. They want to be their own boss, get rich and control their destiny. Youth often succeeds, where experience fails, bringing with it energy, enthusiasm and confidence. It is all about vision and drive. Money is the greatest barrier to most start-ups. It induces fear and a sense of the impossible. This need not be the case. Research carried out in the UK shows that half of all new businesses are financed by less than £5000. About 13% are financed by venture capitalists and another 13% by friends and family. Indications are that a similar scenario plays off in South Africa. Many projects are started with money earned from part-time jobs. Banks are necessary partners but the relationship must be on a profitable basis. With help from local business advisors, a detailed business plan and knowledge of the market, the world is your oyster!
The phenomenon of youth enterprise arose in the 1980s in response to a particular combination of socio-economic and political factors. Since then, an increasing number of young people have set up their own businesses with the assistance of various organisations. Government can help start-ups by cutting down on red-tape and make money more easily available through organisations like the Technology Innovation Agency. Ideally, every company should have a 22-year-old on the board!
Most successful entrepreneurs have some experience in a corporate environment before starting their own business. They collect information on successful business leaders and put it to use in their own projects. There are, of course, difficult times and significant problems in the careers of all entrepreneurs that test their staying power and self-belief.
Despite the requisite self-knowledge, being an entrepreneur is not about working alone. The activity to lead and inspire others is ranked highly among prized characteristics such as persistence, salesmanship and having a great idea. The best entrepreneurs are those who appreciate the needs of their staff, customers and suppliers. After all, no man is an island.
Finance Minister Pravin Gordhan said in his 2014 South African National Budget Address that the National Development Plan (NDP) is a blueprint for faster growth, job creation and poverty alleviation. What’s more, he highlighted the private sector as a critical engine of growth – encouraging it to play a larger role in the economy. But what does that truly mean for businesses and new entrepreneurs? In the words of one industry spokesperson, Greg Vercellotti, executive director at Dariel Solutions, “Essentially, it means increased private sector investment”. Investment in business, investment in the industry in which we operate and investment in people. His sentiments are shared by many South African businessmen and women.
Would-be entrepreneurs need to recognise opportunities the NDP offers and buy in to the change in both the marketplace and end-user tastes. Entrepreneurship is about sensitivity to change, hence the avalanche of those emerging from the ever-expanding computing sector.
While the barriers to business birth and survival are real, they are not insurmountable and are shrinking all the time. Banks have learnt to better understand the needs of small firms, and there are many initiatives designed to help the entrepreneur of the future.
Finance, age and ideas need not be obstacles for start-ups. If you have the right attitude and attributes, go for it! There is a place for you in the NDP!
