The Nation Newspaper

Category: Small Business and Entreprenuership

  • ‘Making people look good is good business’

    Who doesn’t want a radiant complexion? This  business has created  opportunities for micro enterpreneurs with products focused on skincare, make-up, and hygiene.Through sheer passion, courage and a will to succeed, an entrepreneur, Ogbonna John went from nothing to owning a hair products factory. Daniel Essiet writes

    Chief Executive, Newman Cosmetics, John Ogbonna’s story is exciting.

    What started from a friend’s introduction to cosmetics manufacturing has brought him fame and cash.

    He started his hair product manufacturing business four years ago with N3000.

    After researching on hair products, he came up with a better idea – a healthier product with fragrance.

    With a small capital, he bought bottles and chemicals. He couldn’t afford the labelling of the products. So, he did it on credit. He was able to produce six cartons. He made the products manually using plastic drums and a big stick which served as a mixer and oils. He delivered his products by hand to individuals, salons and hairdressers.

    In the beginning, commercial banks refused to fund his venture. While salons, beauty parlours, large retail outlets, bigger, sophisticated salons and supermarkets snubbed his products. But they were popular with street side local hairdressers because of their availability and lower prices.

    Today, the demand for his products has grown.

    His customer include markets, departmental stores, drug stores and pharmacies, beauty salons, barbershops and spas.

    Though the markets are crowded with various local and international beauty and personal care products, the consolation is that there are segments that have different needs and preferences that one can build a profitable cosmetics business on.

    About 30 per cent of all cosmetic products sold in the market are in the skin care category which includes body lotions, skin moisturizers, cleansers, toners, anti-acne, anti-aging and facial products. The growing trend of using skin lightening or ‘bleaching’ products among young women and men is also feeding the frenzy of demand that has made the skin care products category a multi-billion dollar business.

    Though he produces hair cream and body lotions and creams, the main aspect of his business is the production of hair products. This is because he saw an opportunity to create world-class skin and hair care products for the Nigerians.

    A major challenge is funding. He wants to expand his product range to include hair gels and pomades, finance growth, increase his production capacity and extending his product range. He also wants to set up better strategies with emphasis on quality and good packaging.

    He wants to develop, produce and sell a full line of prescription and non-prescription skin and hair care products designed to Nigerians.

    Initially, it was not bed of roses for him. There were times he was so discouraged because he couldn’t raise money to accomplish his execute plans. For him, everybody can be asuccessful entrepreneur. Ideas are plenty. But there are challenges. The ability to handle chaos and still make it successful is what is important. He said the passion to succeed is high among Nigerians.

    He called for efforts and dialogue to address challenges in the sector.

  • Fed Govt urged to assist entrepreneurs

    Fed Govt urged to assist entrepreneurs

    The Federal Government has been urged to create an enabling environment for entrepreneurs.

    The President, Association of MicroEntrepreneursof Nigeria(AMEN), Prince Saviour Iche, said broad-based regulatory reform is also needed to create a more favourable policy environment for innovation

    Speaking with The Nation, Iche said entrepreneurs are agents of economic growth.

    He called on the government to initiate proposals to reduce barriers to new and potentially high-growth businesses.

    While the government wants to leverage on foreign investors to grow the economy, he stressed that there is also a window of opportunity for local entrepreneur is to team up with foreign firms and build innovative synergy and niches in different markets.

    He canvased an end to preferential treatment for foreign investors. He said the government should unify laws governing domestic and foreign investment and create a level playing field for domestic and foreign companies.

    Iche also urged the government to launch policies and obtain tangible results in economic reform this year.

    He said to keep the economy running within “a well-defined reasonable range,” the country will continue to use the strategy that helped it to maintain growth momentum last year.

    According to him, the nation is still facing pressure on growth, inflationary risk and difficulty in industrial upgrading.

    H e said the government should improve efforts on reforming and in fine-tuning its macro-economic policies, adding that the association is ready to launch a massive campaign to sensitise Nigerians on the importance of entrepreneurship as a way to reduce unemployment.

  • How to become a successful exporter

    Exporting is like any other international activity – you are up against the best that the world has to offer. So how do you raise your game to be able to match and then beat your competitors? Well what applies to the All Black’s, Kiwi Olympians and Peter Jackson also applies to you, as demonstrated by these findings from the New Zealand School of Export through its work with Kiwi exporters and how they compare to exporters from other countries.

    The 12 key characteristics of successful exporters are:

    • World-class product or service that people want to buy. Xero’s Rod Drury talks about “beautiful accounting software”. If you have a look at it you will see that it is user-friendly, great value and has superb customer support on the end of a phone or email. Compare that to the competition.

    • Commitment that comes from motivation, which in turn arises from a real passion for what you are doing. Remember the old saying; ‘Find a job you love and you’ll never have to work another day in your life – because it won’t feel like work!’ If you don’t like what you are doing maybe it is time for a career change.

    • Skill can come from asking others how to do things properly, and some skill comes from practice – think Dan Carter and kicking through those goal posts or how great chefs work at a dish for months or years to get it perfect. In exporting, coming second is the same as coming last – either you get the order or you don’t.

    • Asking for help, especially when it’s free and from people who know what they are talking about. There is lots of free help out there from NZTE, NZ Customs, and NZECO. You pay your taxes so use these government agencies for everything from online country briefings and what the import requirements are in a foreign market, to how you can insure yourself against non-payment.

    • Training and turning professional – this is where you need expert help. For example, the New Zealand School of Export offers an immensely practical part-time Diploma of International Trade that takes you through every step of the export journey so you end up with a comprehensive export plan for your product and your target market. This is what ‘upskilling’ and ‘increased productivity’ means. Successful completion of the Diploma allows you to make the step to Global Trade Professional status. You are then ready to go toe-to-toe with the big fellas knowing that you have the same level of international training as they have received – you now know what they know.

    •Customer-focus – your business should be built around your customer and not the other way around. The old 18th and 19th century mindset was production-led: ‘We make this, so you do want to buy it or not?’ The 20th century has seen the rise of the marketing-led approach, which asks ‘What do you want to buy?’ and adapts its product or services accordingly. For example, I know it may be hard to believe, but not every nation on earth enjoys pineapple chunks or hokey-pokey ice cream. The 21st century wont even need to ask as the metadata knows exactly what you are buying and at what price, so companies will target you according to your spend and lifestyle.

    • Research and Development (R&D) – you need to be committed to improving what you do not only in terms of what you make, but also in every part of your business from design excellence to Lean Manufacturing processes. Complacency is what led Kodak to bankruptcy after being the dominant global player in photography for nearly a century. Ask any teenager what Kodak is and they most likely will not have a clue.

    • Know your enemy and know yourself and you can fight a hundred battles without disaster. This saying by the 18th century Chinese general Sun Tzu, who wrote ‘The Art of War’, applies equally to your business competitors. It is relatively easy to look at their websites and company reports, as well as do a bit of ‘mystery shopping’ to find out their product range, turnover, staff numbers, distribution network, profitability and a whole lot more. A quick search of social media will also tell you who the key players are and their contacts. Don’t worry, if they are any good, they will have checked you out a long time ago

    • Play to your strengths and get rid of your weaknesses. A chain (like a business) will break at its weakest point. The recent problems at Fonterra clearly show major weaknesses in product safety testing, managing recalls and public relations in ensuring that the customer perception of the company is not irrevocably damaged to the point here they won’t touch a Fonterra product with a barge pole.

    • Have a game plan. What is your strategy and is it capable of changing with circumstances as the best strategies do? In the jargon this is known as having an ‘emergent strategy’ rather than sticking to a plan because Head Office told you to, even when the plan doesn’t fit reality. In the words of the TV comedy series ‘Spin Doctors’ ‘Just because an idea doesn’t work in practice doesn’t mean it can’t work in theory.’

    • Gather useful information. The best exporters have a way of systematically collecting information from the market on a regular basis and extracting information from it of commercial value – such as, China is opening up 120 new airports in the next 20 years; priceless if you are making baggage conveyor systems (Glidepath) or the luggage and cargo weighing machines that go with them (Atrax).

    • Reflect, get feedback and start a Continuous Improvement Programme. High performance individuals and teams are constantly examining what they did and how they can do better next time, so think about what you can do better next time and make the changes. Small changes made regularly equal massive changes over time. Eating three teaspoons (3 x 4 grams) less of sugar a day will lead to a 4.38 kg weight loss after a year.

    What’s missing from the above list? Natural ability, money, and a ‘she’ll be right’ attitude among other things – you can add your own favourites. Why do some exporters lose their shirt when exporting? Basically because they just ‘give it a go’ and hope for the best. In other words, they are lazy (won’t research the market or business culture or the people they are doing business with), believe that the world owes them a living (and is as honest as they are), and think that everybody is as relaxed as those of us lucky to live in God’s Own country.

    Rom Rudzki is founder and director of the New Zealand School of Export. www.export.ac.nz outh America’s promising trade future

    •Culled from Exporter magazine

  • How to become a successful exporter

    Exporting is like any other international activity – you are up against the best that the world has to offer. So how do you raise your game to be able to match and then beat your competitors? Well what applies to the All Black’s, Kiwi Olympians and Peter Jackson also applies to you, as demonstrated by these findings from the New Zealand School of Export through its work with Kiwi exporters and how they compare to exporters from other countries.

    The 12 key characteristics of successful exporters are:

    • World-class product or service that people want to buy. Xero’s Rod Drury talks about “beautiful accounting software”. If you have a look at it you will see that it is user-friendly, great value and has superb customer support on the end of a phone or email. Compare that to the competition.

    • Commitment that comes from motivation, which in turn arises from a real passion for what you are doing. Remember the old saying; ‘Find a job you love and you’ll never have to work another day in your life – because it won’t feel like work!’ If you don’t like what you are doing maybe it is time for a career change.

    • Skill can come from asking others how to do things properly, and some skill comes from practice – think Dan Carter and kicking through those goal posts or how great chefs work at a dish for months or years to get it perfect. In exporting, coming second is the same as coming last – either you get the order or you don’t.

    • Asking for help, especially when it’s free and from people who know what they are talking about. There is lots of free help out there from NZTE, NZ Customs, and NZECO. You pay your taxes so use these government agencies for everything from online country briefings and what the import requirements are in a foreign market, to how you can insure yourself against non-payment.

    • Training and turning professional – this is where you need expert help. For example, the New Zealand School of Export offers an immensely practical part-time Diploma of International Trade that takes you through every step of the export journey so you end up with a comprehensive export plan for your product and your target market. This is what ‘upskilling’ and ‘increased productivity’ means. Successful completion of the Diploma allows you to make the step to Global Trade Professional status. You are then ready to go toe-to-toe with the big fellas knowing that you have the same level of international training as they have received – you now know what they know.

    •Customer-focus – your business should be built around your customer and not the other way around. The old 18th and 19th century mindset was production-led: ‘We make this, so you do want to buy it or not?’ The 20th century has seen the rise of the marketing-led approach, which asks ‘What do you want to buy?’ and adapts its product or services accordingly. For example, I know it may be hard to believe, but not every nation on earth enjoys pineapple chunks or hokey-pokey ice cream. The 21st century wont even need to ask as the metadata knows exactly what you are buying and at what price, so companies will target you according to your spend and lifestyle.

    • Research and Development (R&D) – you need to be committed to improving what you do not only in terms of what you make, but also in every part of your business from design excellence to Lean Manufacturing processes. Complacency is what led Kodak to bankruptcy after being the dominant global player in photography for nearly a century. Ask any teenager what Kodak is and they most likely will not have a clue.

    • Know your enemy and know yourself and you can fight a hundred battles without disaster. This saying by the 18th century Chinese general Sun Tzu, who wrote ‘The Art of War’, applies equally to your business competitors. It is relatively easy to look at their websites and company reports, as well as do a bit of ‘mystery shopping’ to find out their product range, turnover, staff numbers, distribution network, profitability and a whole lot more. A quick search of social media will also tell you who the key players are and their contacts. Don’t worry, if they are any good, they will have checked you out a long time ago

    • Play to your strengths and get rid of your weaknesses. A chain (like a business) will break at its weakest point. The recent problems at Fonterra clearly show major weaknesses in product safety testing, managing recalls and public relations in ensuring that the customer perception of the company is not irrevocably damaged to the point here they won’t touch a Fonterra product with a barge pole.

    • Have a game plan. What is your strategy and is it capable of changing with circumstances as the best strategies do? In the jargon this is known as having an ‘emergent strategy’ rather than sticking to a plan because Head Office told you to, even when the plan doesn’t fit reality. In the words of the TV comedy series ‘Spin Doctors’ ‘Just because an idea doesn’t work in practice doesn’t mean it can’t work in theory.’

    • Gather useful information. The best exporters have a way of systematically collecting information from the market on a regular basis and extracting information from it of commercial value – such as, China is opening up 120 new airports in the next 20 years; priceless if you are making baggage conveyor systems (Glidepath) or the luggage and cargo weighing machines that go with them (Atrax).

    • Reflect, get feedback and start a Continuous Improvement Programme. High performance individuals and teams are constantly examining what they did and how they can do better next time, so think about what you can do better next time and make the changes. Small changes made regularly equal massive changes over time. Eating three teaspoons (3 x 4 grams) less of sugar a day will lead to a 4.38 kg weight loss after a year.

    What’s missing from the above list? Natural ability, money, and a ‘she’ll be right’ attitude among other things – you can add your own favourites. Why do some exporters lose their shirt when exporting? Basically because they just ‘give it a go’ and hope for the best. In other words, they are lazy (won’t research the market or business culture or the people they are doing business with), believe that the world owes them a living (and is as honest as they are), and think that everybody is as relaxed as those of us lucky to live in God’s Own country.

    Rom Rudzki is founder and director of the New Zealand School of Export. www.export.ac.nz outh America’s promising trade future

    •Culled from Exporter magazine

     

     

     

  • Carving a niche for herself in fashion designing

    Carving a niche for herself in fashion designing

    Female entrepreneurs are using fashion to empower themselves. For one of them, LedifetuAruna, who is based in Lagos, fashion has set her on the road to fame and wealth. Daniel Essiet reports.

    Ledifetu Aruna wanted to be a business owner rather than work for somebody.

    By 1999, she has started dreaming of a dress making business even before she got into college. She saw beyond the limited fortunes of ordinary tailors on the street.

    Her ambition was to take dress making to a level that could sustain and help her achieve her life’s goals.

    Eventually, she began her fashion company in Lagos in 2011 with less than N100,000. Her strategy was to create winning designs that are affordable and suitable for the middle class. As a result, sales rose. Today, the business is self sustaining. She designs her own collections. Aruna ‘s eye for fashion has set her on the road to making millions.

    She has gone from running the business on her own to having a full team around her now. Her huge clientele is solely based on word of mouth publicity. She believes an entrepreneur must have a goal in mind and should continue honing their skills for life. To her advantage, Aruna paired her skills – business savvy and great leadership – with a desire to create winning designs.

    In a world where well-tailored dresses cost a fortune, she manages to deliver quality at affordable prices.

    Lagos, arguably one of the most suitable places to do business in Nigeria, has contributed to the success of her business.

    According to her, fashion and tailoring business can be approached from two angles: start small from home with manual machines, or open a shop with industrial equipment and machines awith expert tailors. While the first approach is not capital intensive, the latter is.

    Aruna, who combines modern fashions with African colours, doesn’t shy away from making bold statements. Much of it is based on the processing of fabrics.

    She blends imagination, comfort and style to create functional and fashionable designer clothes.

    In addition, she ensures that her products are 100 per cent Nigeria.

    On the secret behind her success, she said: “The secret to my business success is my unwavering commitment to back my dream with hard work. It is also the ability to anticipate future trends, delivering unique, quality garments, providing customers with a fulfilling dressing experience and exceeding their expectations.”

    Her fast-track growth is particularly notable because she found success in an already crowded and fiercely competitive fashion industry. To run a successful business, according to her, requires awareness about the specified field and all related areas.

    She said new entrants need supplies such as sewing and weaving machine, sewing accessories, pattern cutting table, pressing iron, a generator and clothes shelf, among others.

    Her clients include men and women within the 20 to 55 age bracket, teenagers and children who recognise the need to look good and the importance of quality service at a little extra premium.

    She added however that starting a fashion and tailoring business is not easy.

    New entrepreneurs face a number of hurdles, including navigating complexities of the industry, creating a solid business plan, and finding affordable space.

    The business is not very lucrative for the first six months to a year. In fact, nine out 10 business fail, so it is a big risk. She said challenges are numerous, including the challenge of accessing credit.

    For this reason, she worked all-day on weekdays, nine to eight and Saturdays; sometimes extra longer hours on weekdays and Sundays to meet delivery deadlines. Her advice to other entrepreneurs is to make continuous training and learning top priority. Three tips for launching a business in a competitive industry: Be unique, know your price point, listen and respond.

  • ‘Entrepreneurship can boost job creation’

    Director-General, Federal Institute of Industrial Research Oshodi (FIIRO), Dr Gloria Elemo, said unleashing a transformational change through tapping into the creativity and ambition of existing and aspiring entrepreneurs will boost the economy.

    Speaking in Lagos, Elemo said the institute is determined to train technology-based entrepreneurs on various technologies to establish profitable businesses and create millions of employment opportunities.

    The FIIRO boss said the institute had developed over 250 technologies, with over 50 of such ready for immediate commercialisation.

    Elemo said in fulfillment of its objectives, FIIRO had achieved key developments and major research breakthroughs. She listed some of the major breakthroughs and developments made by the institute so far to include the development and utilisation of high quality cassava flour for cassava-wheat composite flour production for bread making, which received Presidential attention in 2004; cassava chips and pellets production, which products are used mainly for animal feeds; upgrading and mechanisation of the traditional method of fufu production; ethanol production from cassava; glucose syrup production from cassava; research and development pioneering activities in the areas of cosmetics and soap making; the development of soy-ogi, a protein-enriched food for both adults and infants; and edible mushroom.

    She said: “In the area of collaboration, the institute is in partnership with varsities, polytechnics, research institutes, government agencies, non-governmental organisations and industries, with the aim of commercialising our research output to create more jobs for Nigerians.”

    Chief Executive, Ezira Waters, Chief Chris Alachebe, said only genuine efforts towards establishing cottage industries where Nigerians will be gainfully engaged would solve the problem of unemployment.

    He noted that the large number of unemployed youths has become a serious issue in terms of its potential for national insecurity which may result in possible engagement in crummy lifestyles.

    “In a bid to help ameliorate this problem, through God’s help, I established a water production cottage industry where a considerable number of youths in the community have been employed. The establishment of the water production industry which produces the high rated Ezira premium table water was borne out of the desire to create jobs for the people.

    “This is a way of helping to curb youths’ restiveness and also a way of helping to achieve community development.

    “I thought deeply of how to empower the youth and the community. I decided, in addition to my other existing going concerns, to establish the Ezira premium water cottage industry where we produce sachet water, 50cl, 75cl, 1.5cl and the 19.5 jar categories. Since the commencement of the cottage industry, I am satisfied that a great number of hitherto unemployed people have been engaged because the water we produce has received recognition and acceptance by the public as it is ordered by people from almost all the 36 states of the federation, including Abuja,” Alachebe.

    He added that it does not require so much money to establish small-scale businesses, saying “if one is waiting to get millions of Naira before one commences the establishment of small business, one may wait forever. What is important is for one to begin with any small amount of money and gradually, one would accomplish one’s desire.”

    He advised wealthy Nigerians not to stock-pile whatever money they have. Rather, they should use it to establish industries that would absorb “this army of unemployed graduates” that Nigeria has, even as he said that “any money stocked in the bank or elsewhere that is not used to establish industries where Nigerians would be employed and which would serve as their means of livelihood is a waste and smacks of selfishness.

    “If money in private hands are spread by way of building cottage industries, youths wouldn’t have the time to be restive or engage in criminal activities as they would be busy eking out a living. If job opportunities are created for the teeming youths, it will go a long way in curbing the incidences of armed robbery and kidnapping which are fast growing into huge industries.

    “The problem the society is experiencing is that it has not sincerely and genuinely been committed to finding solutions to the troubles the youth are going through.”

    He said the nation has to enable Nigerians to acquire or improve entrepreneurial skills and knowledge.

    He said entrepreneurship can boost job creation.

    According to him, accelerating industrialisation requires a focus entrepreneurship, stressing that this is the key aspect to fully capture the potential of the nation’s dynamic work force and boosting inclusive sustainable development continent wide.

    He urged the government to foster job creation and entrepreneurship as critical ways to build a more prosperous and sustainable future.

     

  • Taking on the ‘big boys’ in cosmetics

    Taking on the ‘big boys’ in cosmetics

    Local entrepreneurs are facing stiff competition from their foreign counterparts. Chairman, Imo State Branch of Association of Micro Entrepreneurs of Nigeria (AMEN), Anozie Kenneth is among those battling the dominance of multinationals in the cosmetics industry. Daniel Essiet reports

    Anozie Kenneth, a beauty industry entrepreneur and Chief Executive, Blazing Star Cosmetics,Owerri, Imo State is making money creating and marketing products that consumers discovered they couldn’t live without.

    He started the business in April 2011. While he didn’t invent the perfume product, he has been able to come up with a commercially viable perfume, beating big companies to the market and holding them at bay once he got there.

    He was driven to venture into entrepreneurship because he was always dreaming his own business. He was one of the Human Resources hands of Mr Biggs for the Southsouth.

    He never thought of getting into the competitive world of cosmetics, an industry dominated by large multinationals until he saw an advert in Success Digest on perfume production. He looked at a few samples of business ideas before settling for cosmetics manufacturing.He came over to Lagos and undertook the training.

    He consulted the manual the training facilitators gave him after the course.

    This guided him on the formulation and development of the product range. He was able to raise the initial capital of N350,000 to start a production plant.

    He realised men and women would buy affordable quality perfume. Today, he sells his perfume products through cosmetic shops and distributors, wholesalers, and mini-supermarkets that have a consistent flow of customers.

    He uses locally available active ingredients in the formulations and value consistency in quality and supply. But despite recent efforts to reinvigorate the sector, local entrepreneurs face myriad challenges.

    For him, it needs to be much easier for an entrepreneur to register his product with the National Agency for Food and Drug Administration and Control (NAFDAC).

    Right now, he is contending with competitors and convincing outlets to stock his products. But he is committed and focused on taking on the cosmetic giants through visionary leadership, team work and professional guidance.

    He is determined to become the hottest firm in the fragrance industry, with the addition of the equally powerful and enduring scent.

     

  • Association sets blueprint for SMEs’ growth

    To create an environment in which small businesses can prosper, the Federal Government has been urged to focus on talent, expertise, and other resources on facilitating economic growth and enterprise across the country.

    Speaking with The Nation, the President, Association of Small Business Owners of Nigeria,Dr Femi Egbesola, said successful small businesses are critical to maintain a robust economy.

    Their numbers, he noted, speak for themselves, adding that governments’ investments in small businesses would not only benefit the businesses, but also the economy and the society.

    He said it is the government’s responsibility to ensure that its policies support small businesses, create the conditions for small business to flourish, and encouraging citizens to establish small-business ownership, adding that the government needs to take a closer look at what it takes to be a thriving entrepreneur, how small companies can compete effectively and how they can gain maximum benefit from both existing and future public and private support programes.

    He said: “Small and medium-sized enterprises (SMEs) are the engines of economic growth, the backbone of the economy and the principal sources of new employment. By increasing their ability to innovate, we will drive job creation and economic growth.”

    He said at the moment, the main challenge for the government is providing the conditions for sustainable and inclusive growth, arguing that long-term growth and job creation would be delivered best through SMEs that gain and sustain their competitive advantage through innovation.

    He said SMEs are the core of business activities and that they need to exploit current trends to their advantage, Egbesola, said.

  • Importance of personal stock taking for Africa’s SME owners

    Importance of personal stock taking for Africa’s SME owners

    AT the end of the year, many individuals start winding down and prepare for the festive period, after a long and possibly strenuous year. For many small and medium enterprise (SME) owners however, business comes first, which often results in no period being set aside for relaxation and rest, which is necessary to prepare themselves for 2014 and the new challenges that come with it.

    Managing Director, Business Partners Limited, Nazeem Martin, said though separating work life from personal life can be a challenge for many business owners, especially during their first five years, this balance is vital in order to ensure a healthy and stimulated business.

    He said a business owner’s hours often do not fall during traditional work hours, due to the demands and responsibilities that running a business entails. “While business operations may require long hours, and as a result time with family and friends is sacrificed, this should not be the norm for any business owner.”

    Martin points to the Wheel of Life model, which explains that in order to become an optimal functioning person, an individual needs to develop seven areas, namely: financial, family, mental, work, social, physical and spiritual. “If the business owner only focuses on financial and work aspects 24/7, the other aspects of his or her life will suffer. Individuals, who develop and give time to all seven developmental areas in their life, are able to cope better with stress, have more meaningful and lasting interpersonal relationships with others, and are generally more optimistic about life.”

    He adds that the benefits of maintaining this balance will quickly reflect in their business as this balance allows time for the business owner to not only recharge, but also to reflect on past actions.

    “Self-refection is one of the key personality traits of an achiever. Self-reflection requires taking the time to assess actions that have been taken and the consequences thereof. Self-reflection is also about being aware of strengths and weaknesses and understanding how to use and develop both to become a whole and successful person on all levels of your life, as indicated in the Wheel of Life model.”

    Martin said in order to achieve and maintain a work-life balance, self-management and time management is needed. “If a business owner burns out and develops serious health problems, the business can be negatively affected. Self-management will therefore ensure that a business owner eats healthily, gets enough sleep and maintains good health generally.

    “Management of a business owner’s schedule is another aspect that is crucial to finding a balance between work and personal life. Scheduling ‘down time’ or ‘me time’ will enable business owners to recharge their batteries and remain alert, focused and goal-orientated. Similar to how long and medium-terms goals are set for a business, business owners can plan their time ahead and include time for relaxation.

    “Business owners, undoubtedly, work very hard, and often do not think twice about putting in the extra hours due to the love they have for their business and what they do. While this passion for their trade is encouraging and positive, it is important to have a balance to enable reflection and downtime, as a business cannot be strong if the owner isn’t,” Martin added.

    •Courtesy of www. howwemetit .com

     

  • ‘Banks advance loans more to small women-owned business owners than men’

    In Africa, small women-owned business owners find it easier to obtain loans than their male counterparts. The reason for this distortion is that politicians and foreign aid organisations with their focus on bank loans for women encourage African banks to base their credit availability on gender. Contrary to intentions, there is thus a risk of inhibiting growth in the private sector, conclude researchers from the University of Copenhagen in the new study.

    The share of women-owned companies is lower in Africa than elsewhere in the world. However, African women establishing themselves as small company entrepreneurs have higher chances of obtaining bank loans than similar businesses run by men. On the other hand, male African corporate leaders tend to be favoured in terms of obtaining loans for medium-sized companies. These are the findings of researchers from the University of Copenhagen, who have analysed prospects for growth in the lending of African banks. The findings have just been published in the scientific journal Development Studies.

    The survey specifically shows that there is a six percentage point higher chance of small women-owned small businesses obtaining loans than if the businesses have male owners. The opposite is true for large companies with more than 50 employees, where there is a difference of more than six percentage points higher probability of women owners being denied loans compared to men.

    “African women generally have less favourable terms than African men in many aspects of life – also when it comes to the possibility of starting up businesses. However, in relation to obtaining bank loans for running small businesses, men seem to be the ones discriminated against. The reason for this is that African banks receive funding from donor organisations such as Danida to support women business owners. Therefore, the African banks tend to provide loans to women rather than men, even though men may have better investment projects and business ideas, says Henrik Hansen, professor at the Department of Economics, who together with John Rand, professor at the Department of Food and Resource Economics, has headed the research.

    The researchers looked at data collected by the World Bank from 4,838 businesses in 16 African countries south of the Sahara. Among other things, the World Bank asked the businesses about the gender of the owner, their annual sales, whether they have a bank loan, etc. From the figures, the researchers were able to ascertain that small women-owned companies have the same productivity and capacity utilisation as companies owned by men, while their profit rate is actually lower. They can therefore conclude that there is no immediate reason to favour loans to women owners.

    “In the hope of stimulating growth in the African private sector, humanitarian aid organisations such as Danida support the banks to enable them to extend loans for investing in and running businesses. However, when the organisations give banks the green light to make it easier for women than for men to borrow instead of focusing on the nature of the business idea, they run the risk of, at worst, inhibiting growth, “said John Rand.

    “ Our analyses of the figures from the World Bank show that women-owned companies do not perform better, which could prompt us to ask whether it would not be better to focus on viable business concepts rather than gender to boost growth in the African private sector – in particular if the funding is to fuel growth. Our research does not conclude anything about the derived effects of better bank loans for women business owners, e.g. whether favouring women pays because then they will make sure that their children get an education and better health as African women are responsible for the children,” said Henrik Hansen.

    • Courtesy of Finance African

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