In Africa, more than 70% of the general population are entrepreneurs. Several own small to medium-scale businesses, and it is estimated that every African has been an entrepreneur or started a business once in their lifetime.
The present generation of young Africans was raised by typically entrepreneurial parents.
Despite the ginormous rate of entrepreneurship on the African continent, more than 75% live below the poverty level.
Possibly, this could be a result of little business management knowledge or simply the lack of tools to assist small to medium-scale businesses.
It is no secret that small and medium-scale businesses fail by percentage when compared to big businesses. For context, only 20% of new businesses and startups make it past their first year of business operation, and only 33% of small businesses make it to the 10th year.
Some contributing factors to the failure of small businesses are:
Poor customer care and support: Customers who are not treated or appreciated become dissatisfied, leave negative reviews, and patronize others.
Small businesses that do not provide excellent customer service collapse as a result of the loss of many customers and prospects. Customers who feel unimportant to a business will seek out another that will care for and value them properly.
Mismanagement of Funds: Some small businesses fail because there is no accountability and the owners mismanage the business funds. These businesses fail to account for the sales they make or what they use the cash for.
Some business owners even spend their business revenue on personal or family needs. So what do you expect when the money meant for business is used up on non-business expenses? Such a business will crash sooner or later.
Poor Business Management: When a business is poorly managed, its death is imminent. Management comprises activities such as planning, organizing, staffing, directing, motivating, controlling, co-coordinating, and communicating.
Moreover, knowing where your business stands in the current market, as a business owner is a fundamental rule of small business management.
Small businesses that are managed poorly will eventually go out of business.
The way out?
At MAX, our Champion Model empowers our champions (drivers) to be responsible for their businesses. This puts them in the driver’s seat of their businesses.
With these in mind, our champions (drivers) are trained in customer relationship management and proper business management — putting them on a better pedestal than their counterparts.
This has no doubt added to the successes recorded among our champions.
Perhaps the best way out of small-scale business failure is to equip these businesses with the right knowledge and financial tools to empower them to lead successful businesses.
Several African businesses face numerous challenges that could impede their growth and development. One of these is the lack of a conducive environment for small and medium-scale businesses to thrive, another way out is access to business communities that offer support to small and medium-scale businesses like the MAX Champion Town Hall.
MAX is building the largest mobility-tech platform and empowering young Africans by providing premium, low-emission vehicles to create wealth and build sustainable businesses.
With the right mindset, drive, and determination, our champions are on the right path to building successful businesses.
Do you know about the MAX Champion Model? Read about it here.
