There’s a commonly held belief that triumphant entrepreneurs are born with a natural instinct for success — but that doesn’t make it true, and nor does it mean that one can’t learn how to be successful in business.
Allon Raiz, chief executive of Raizcorp, which runs an entrepreneur support programme, believes that individuals can succeed in business through a combination of internal and external factors.
“By definition, entrepreneurs are people who are enterprising. They’re willing to try new challenges and achieve their goals,” says Raiz.
“Making a success of a business is never easy. Entrepreneurs need to take full advantage of their own internal capabilities, as well as of external assistance. There are of course those who don’t believe in seeking outside help, thinking that they can achieve all that they strive for by themselves.
“But performance psychologists confirm that while a certain level of success is attainable without assistance, one of the characteristics of champions is that they make use of both internal and external support.
“That doesn’t mean admitting failure, but rather marshalling all the resources at their disposal to maximise their likelihood of success.”
The internal support that Raiz talks about includes the qualities that entrepreneurs need to ensure that they attain success. These are, he says, “tenacity, patience, passion, determination, people skills and a myriad more.”
The rest is “organisation of thought and action, and a working plan.” Raiz acknowledges the ongoing debate on “whether an entrepreneur is born or made.” The reality is that it’s most likely to be a mix of both.
Entrepreneurs need to learn a range of skills to grow while their business instinct keeps them thriving.
“What can definitely be taught is how to handle customers, manage employees, maintain relationships and provide benefit for stakeholders. But when your entrepreneurial world is turned upside down and your business faces hardship, you’ll need something more to get you through the difficult times,” says Raiz.
He believes that the level of local entrepreneurial success could be much higher and there’s a need for help to make this happen.
“In South Africa, only 5% of adults attempt to start up their own businesses,and only a quarter of them survive for longer than three years. Where new small businesses are established out of necessity rather than genuine purpose, there is a 96% failure rate,” says Raiz.
“The damage caused by this kind of failure is terribly destructive, as it usually means the loss of personal assets such as homes and vehicles, and great economic hardship for families.
“In order to increase the success rate of entrepreneurship in South Africa, and thereby
positively af fect the economy and alleviate poverty, more support is required. Entrepreneurs should gain support from sources including capital investors, employees, the supply chain and financiers.”
The other push factor is entrepreneurial education, he says, as it is “considered one of the most important variables impacting on business success.
“Two areas of education are to be considered; managerial training and entrepreneurial training. These both influence the propensity to become self-employed. Entrepreneurial ability without managerial ability would not be sustainable. In addition, management and entrepreneurial skills and experience are the most frequently used selection criteria of venture capitalists,” explains Raiz.
“It has been found that entrepreneurs who invest in education are more likely to have a growth strategy and run profitable businesses.
“In order for the entrepreneur to make a success of things, they must be surrounded with appropriate guidance, someone who can speak from experience and has the skill to guide and advise on all the important business issues such as strategy, marketing, sales, accounting, legal requirements, and staff management and training.”