On Entreprenuership
I was invited last Sunday to speak to a named church's youths about entrepreneurship. I take opportunities to speak to the youth very seriously and I am always hoping that by the end of the talk I would have made a difference in the life of at least one of them. My default temperament being melancholic, I began on a sad note.
I explained that my sad juices well inside of me every time I see youths that give up. I am talking about those girls and boys who while admittedly being born into dire circumstances, choose to do nothing about that. They sit idly waiting for some manna to drop from heaven while engaging in endless pity parties. They walk around like they are the worst sufferers in the world, their long faces casting a shadow one mile long. I challenged them to ask some of the people they considered successful and see how they have made something out of nothing armed with only a positive attitude and the willingness to work hard.
My first entrepreneurial project of note was rearing chickens. I have a soft spot for birds and still believe today that rearing them is probably the most satisfying thing I could do for a living. I bought one chicken in one of the villages surrounding Chongwe in early 2004 if my memory serves me right. It was a little thing, grey in color with a smashing of black about it. Going back home I prepared a home for it in the pantry with a stern warning to whoever would try to disturb it that they would face my wrath. Come to think of it, facing my wrath is not the worst that could happen to anyone.
Three months down the line, my little chicken had grown, laid eggs and hatched twelve beautiful chicks. Of the twelve, only two died while the ten that survived included seven hens which joined forces with their mother in increasing the population of chickens. I sold off the cocks, opened myself an account with one of the banks and saved the money.
Going to university, I had a bit of money to buy a few essentials, all realised from my chicken business. Whenever I called home, I would be assured that my chickens were doing fine and were multiplying and subduing the Earth, if you will allow me to borrow from the Bible. The truth was only revealed when upon conclusion of the semester I sauntered into our yard and try as I might could not see any chickens scurrying about. Turns out in my absence, the chickens had been supplying my family's protein requirements.
Despite the disappointment I was left to reflect on my little enterprising activity. Over the years I have tried my hand at buying and selling cattle, writing project proposals and even tax advisory services with limited success. Still think I would be better served at rearing Chickens.
While researching for my presentation, I came across a 2001 paper by Sara Sarasvathy that asked the question "what makes entrepreneurs entrepreneurial". She posits that much of what makes successful entrepreneurs is this ability to perform effectual as opposed to logical reasoning. Effectual reasoning does not operate within a set of rigid rules, rather while acknowledging the same rules is not afraid to seek solutions outside the prescribed sphere.
It is akin to the "searchers", "planners" debate that has for a long time characterized the discourse of two of my favourite economists in the name of professors Jeffrey Sachs and William Easterly. William Easterly argues in his usual chatty style that the main reason why poverty is still a problem in spite of the existence of the World Bank and International Monetary Fund, not to mention numerous NGOs in different guises, is because these organisations are filled to the brim with planners. They end up coming with rigid grand orchestrations that end up becoming an impediment to efficiency while so much is spent in generating these plans at the expense of making a difference on ground level. He gives an example of how more than one million babies died in Africa in 2005 of Malaria which could have been prevented by Mosquito nets; the same which were already there but could not reach their recipients in time because of the slow pace at which the grand plan of the WHO was moving. He contrasts this with the release of yet another installment of the Harry Porter series which within hours had reached more than a million of its audience.
He goes on to show the major difference between the two as characteristic of planners and searchers. Searchers find ways by constantly modifying and adjusting while planners stick to the plan conceived in boardrooms regardless of the hurdles they face. In a way Sarasvathy's conclusions deserve more than just a casual glance. In my humble view, they seem consistent with some of the most successful entrepreneurs we have come to know such as Steve Jobs, Warren Buffet and our very own Enoch Kavindele. Some would argue that Warren Buffet does not fit in this category as he is well educated with a Masters in Economics to his name. Yet when you read about him, you realise that there is something in him at a cognitive level that endows him with the ability hat has made him distinguish himself as an entrepreneur and investor. It is that which makes men who may be devoid of many of these trappings that many seek such as MBAs and CFAs manage to generate wealth by being effectual at times to the extent of defying logic.
Unfortunately effectual reasoning is not taught in the celebrated MBA programmes where they teach Michael Porters five forces or performing a SWOT analysis. And to be fair, effectual reasoning can never be taught. However she argues, with plenty of persuasion that the usual MBA "horse-shit" often ends up placing limits in our approach to real-life situations. We spend time looking for Micheal Porter's forces for example and are left clueless anytime something that we are not trained for crops up. Successful entrepreneurs on the other hand are not exempt from planning but always have a plan B, C, D and so forth up their sleeves even it is conjured up in the heat of the moment.
School will equip you with basic knowledge, but to be a successful entrepreneur, you will need more than that. You have to be naturally talented and that is something no amount of formal education will ever drum into your head.
I explained that my sad juices well inside of me every time I see youths that give up. I am talking about those girls and boys who while admittedly being born into dire circumstances, choose to do nothing about that. They sit idly waiting for some manna to drop from heaven while engaging in endless pity parties. They walk around like they are the worst sufferers in the world, their long faces casting a shadow one mile long. I challenged them to ask some of the people they considered successful and see how they have made something out of nothing armed with only a positive attitude and the willingness to work hard.
My first entrepreneurial project of note was rearing chickens. I have a soft spot for birds and still believe today that rearing them is probably the most satisfying thing I could do for a living. I bought one chicken in one of the villages surrounding Chongwe in early 2004 if my memory serves me right. It was a little thing, grey in color with a smashing of black about it. Going back home I prepared a home for it in the pantry with a stern warning to whoever would try to disturb it that they would face my wrath. Come to think of it, facing my wrath is not the worst that could happen to anyone.
Three months down the line, my little chicken had grown, laid eggs and hatched twelve beautiful chicks. Of the twelve, only two died while the ten that survived included seven hens which joined forces with their mother in increasing the population of chickens. I sold off the cocks, opened myself an account with one of the banks and saved the money.
Going to university, I had a bit of money to buy a few essentials, all realised from my chicken business. Whenever I called home, I would be assured that my chickens were doing fine and were multiplying and subduing the Earth, if you will allow me to borrow from the Bible. The truth was only revealed when upon conclusion of the semester I sauntered into our yard and try as I might could not see any chickens scurrying about. Turns out in my absence, the chickens had been supplying my family's protein requirements.
Despite the disappointment I was left to reflect on my little enterprising activity. Over the years I have tried my hand at buying and selling cattle, writing project proposals and even tax advisory services with limited success. Still think I would be better served at rearing Chickens.
While researching for my presentation, I came across a 2001 paper by Sara Sarasvathy that asked the question "what makes entrepreneurs entrepreneurial". She posits that much of what makes successful entrepreneurs is this ability to perform effectual as opposed to logical reasoning. Effectual reasoning does not operate within a set of rigid rules, rather while acknowledging the same rules is not afraid to seek solutions outside the prescribed sphere.
It is akin to the "searchers", "planners" debate that has for a long time characterized the discourse of two of my favourite economists in the name of professors Jeffrey Sachs and William Easterly. William Easterly argues in his usual chatty style that the main reason why poverty is still a problem in spite of the existence of the World Bank and International Monetary Fund, not to mention numerous NGOs in different guises, is because these organisations are filled to the brim with planners. They end up coming with rigid grand orchestrations that end up becoming an impediment to efficiency while so much is spent in generating these plans at the expense of making a difference on ground level. He gives an example of how more than one million babies died in Africa in 2005 of Malaria which could have been prevented by Mosquito nets; the same which were already there but could not reach their recipients in time because of the slow pace at which the grand plan of the WHO was moving. He contrasts this with the release of yet another installment of the Harry Porter series which within hours had reached more than a million of its audience.
He goes on to show the major difference between the two as characteristic of planners and searchers. Searchers find ways by constantly modifying and adjusting while planners stick to the plan conceived in boardrooms regardless of the hurdles they face. In a way Sarasvathy's conclusions deserve more than just a casual glance. In my humble view, they seem consistent with some of the most successful entrepreneurs we have come to know such as Steve Jobs, Warren Buffet and our very own Enoch Kavindele. Some would argue that Warren Buffet does not fit in this category as he is well educated with a Masters in Economics to his name. Yet when you read about him, you realise that there is something in him at a cognitive level that endows him with the ability hat has made him distinguish himself as an entrepreneur and investor. It is that which makes men who may be devoid of many of these trappings that many seek such as MBAs and CFAs manage to generate wealth by being effectual at times to the extent of defying logic.
Unfortunately effectual reasoning is not taught in the celebrated MBA programmes where they teach Michael Porters five forces or performing a SWOT analysis. And to be fair, effectual reasoning can never be taught. However she argues, with plenty of persuasion that the usual MBA "horse-shit" often ends up placing limits in our approach to real-life situations. We spend time looking for Micheal Porter's forces for example and are left clueless anytime something that we are not trained for crops up. Successful entrepreneurs on the other hand are not exempt from planning but always have a plan B, C, D and so forth up their sleeves even it is conjured up in the heat of the moment.
School will equip you with basic knowledge, but to be a successful entrepreneur, you will need more than that. You have to be naturally talented and that is something no amount of formal education will ever drum into your head.
food for thought as usual ...
ReplyDeleteExactly. Perhaps we need more programmes that are not that mechanized.
ReplyDeleteEntrepreneurship can be successfully taught Keith even to people who do not have the natural talent to easily spot and manage investments. The manner in which you teach entrepreneurship matters and I think that is what makes the difference hence the need for the reformation of our education system. The current education system and curriculum in Zambia does not train people to identify opportunities except of course for the "endangered species"-formal jobs.
ReplyDeleteZambia and many neighbouring countries have a lot of opportunities which can improve the well being of most of our improverished brothers and sisters but unfortunately most Zambians seem to be blind to these opportunities. It seems it is only foreigners and probably a few locals who are able to spot the opportunities . I attribute this "opportunity blindness" to the education curriculum which remains unchanged for decades despite growing unemployment even among the educated (mal-educated). The school curriculum at all levels needs to be revised in a manner which will enable the graduates to not only identify and exploit opportunities but to also create some in all sectors of our economy. Entrepreneurship needs to be encouraged at all levels of our society and needs to be an integral part of our education systems. Our graduates need to be taught practical ways of identifying and utilizing opportunities and not just to be job seekers.