Tag Archives: africa

Is Upbringing a major letdown for SMEs?


The typical Ugandan family has always held the belief that Children need to be protected from any engagement or activity likely to divert their attention from the formal school studies as a way of guaranteeing them a bright future. While growing up, having lived in the Naguru area which was regarded as the sporting zone of Kampala, I loved watching the various sports activities taking place like Boxing, Cricket, Lawn Tennis, Table Tennis, Rugby, Handball and swimming.

I once approached my father and requested him for some money to buy a table tennis bat so I could play the game. His response was so negative that I never wasted my breath again asking for sports facilitation. However, I got to see many excel in sports having been given a chance by their parents among whom include Julius Omoding in Table Tennis who is now the CEO of Bank, Godfrey Nyakaana in boxing and currently a leading politician in Kampala City, Cedric Babu in Lawn Tennis and is the CEO of Kinetic Management Group, to mention but a few.

I have seen parents refuse to allow their children handle money or even try out some basic work for financial gain while still studying claiming that the money earned will spoil them. They prefer to provide 100% for the needs of their children and only when they reach University are they given some leeway to handle finances. Others aren’t even given an opportunity to carry out basic tasks in the home like compound slashing, cooking, cleaning up the house, feeding the backyard chicken, weeding the flowerbed or home garden with the expectation that their time is best spent revising school work and watching TV. This attitude crops out of the misguided concept that the children will graduate with honors from a leading University, acquire white collar jobs that will allow them to earn enough to pay for domestic workers among other things.

A young child being taught how to weed rice

A child being taught how to weed rice at the Doho Rice Scheme, Butaleja, Uganda.

While I can’t fully discount their fears, I must add that their perspective is skewed. You can’t complain of money spoiling a child when you have avoided the task of teaching that child financial management, however basic. Preventing a child from engaging in household chores is denying them opportunities of learning responsibility, leadership, planning and often times crisis management.

Fast forward to the corporate world. These children will eventually be spewed off the academic conveyor belt into the working environment and after landing that first job with very brilliant paperwork (first class degrees and the like), the employer gets disappointed in the fact that apart from appearing to have all the theory right, the recruit is nothing better than a paper tiger. Imagine a team leader who falls short in communication skills, financial planning or crisis management.

A good number of employees have some or all of the following attributes which can be traced to their upbringing;

  • Laziness: This is the tendency of wanting to do as little as possible despite having a strong desire for the money that is being paid. Employees that are lazy tend to avoid tasks they consider challenging and want to dwell on the ‘easy to do‘ work. Whenever a situation arises that demands them to unilaterally do work that is perceived as hard, they will be seen complaining even before making an attempt.

  • Lack Proactivity: The ability to take initiative is usually lacking among some employees. They are the type who will always wait for instructions even when they could figure out for themselves what to do next. Each time they are asked why they hadn’t taken action over a certain matter, the response will be, “I wasn’t told to do that.” Chances are, such a person was raised in a manner where they only did what their parents instructed them and the rest was done for them. They also tend to have the desire to always ‘play it safe‘ fearing to make mistakes lest they fall out of favour.

  • Grumpiness: For anyone who has run a start-up on a shoe strings budget, am sure you’ve noticed this. A delay in salaries by a few days leads such employees into creating a storm in a tea cup. Call them to work on a weekend in order to meet a client’s deadline and matters become even worse. Fail to provide them with lunch or transport allowance and they will sing tales of how other employers are better. However, you’ll be left wondering why they can’t go to those ‘better’ employers.

  • Lack Flexibility: Life is about constant change. This is one of the reasons the human race has been able to exist to-date. The work environment requires this attribute due to the ever changing nature of business and the circumstances under which it operates. Some employees are just not tuned for a flexible work environment and whenever the need for change occurs abruptly, they will be seen facing a hard time making adjustments. You might be a Sales or Marketing agent for that company but a time comes when you have to double up as a Client Relations officer due to some restructuring. One of the leading local TV stations underwent a restructuring process that saw people merge their roles. Those who were accustomed to only searching for news from the field were now faced with the task of editing that news and ensuring that it is ready for broadcast. Trust me, the complaints were many.

  • Honesty: A much needed trait in any employee, it is becoming a rare one lately. Many having grown up not knowing how money is made and only being on the receiving end of the finances didn’t have a chance to appreciate that those large figures of money they regularly received from their parents took time to earn. Others have grown up in homes where financial impropriety is idolised. Yes, I have heard some people brag before their very children that anyone who has a job and gets a chance to lay their hands on company money shouldn’t be a fool not to steal. Such employees are easily noticeable if one keeps a keen eye on the staff and closely monitors the processes in place to handle finances especially. Often times, due to the breadth of work available in the organisation, such people thrive illicitly and it takes a major incident for them to be uncovered.

  • Self Entitlement: These are the type that feel they are doing the company a favour to be employed by it. They believe they deserve more. They always want to see the company fall over itself to please them even when the circumstances don’t demand so. This is one of the most poisonous trait for any employee to have and as a business owner, if you ever identified this and the culprit isn’t willing to change, part ways immediately. Such tend to come from families where they have been excessively idolised due to one reason or another.

As a small business starting up or already operational, you need to watch out for some of these traits and much more to ensure that you can maintain a proper balance between your resource potential and business growth. The last thing you need is a culture that breeds negativity, it eats everyone around you right from the marrow and can lead to total business failure.

Want a Business Partner? Think Carefully


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[12:46PM, 01/05/2015] ‪+256 772 xxxxxx: There’s this dude that I am entering into a joint partnership with

[12:47PM, 01/05/2015] ‪+256 772 xxxxxx‬: We agreed to start a project together
[12:47PM, 01/05/2015] ‪+256 772 xxxxxx‬: We acquired the land
[12:48PM, 01/05/2015] ‪+256 772 xxxxxx‬: Now we took loans to build chicken houses and start off
[12:48PM, 01/05/2015] ‪+256 772 xxxxxx‬: Yesterday I found the guy cruising in a Germany made machine

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The above is a true discourse a member of an Entrepreneurship WhatsApp group am subscribed to shared with us on Labour day. She had this goal of setting up a business to guarantee some side income. Conveniently, she had this friend who used to talk positively about doing something similar. Before long, they agreed to work together and set up a poultry project. This led them to borrow money to start the business and unfortunately even before they could see the first return, her partner chose to use the money borrowed from the bank to buy a top of the range car.

Without going into details as to who is to blame and what she could have one better, I want to admit that this kind of experience is common to most entrepreneurs. Infact chances are very minimal that you will find an entrepreneur who hasn’t been disappointed in a similar manner.

A Cassava dealer at Kafu Bridge in Western Uganda.

A Cassava dealer at Kafu Bridge in Western Uganda.

You might be planning to start a business or are already a going concern and you’re actively looking for partners. My advice to you is to take a step back, assess your needs and challenges, verify whether you do need partners and for what specific purpose before announcing to anyone who cares to listen.

A friend of mine that runs a Recruitment agency once told me that one of the biggest lessons he has learnt in his entrepreneurial career is never to get partners on board because of their money. Often times as an entrepreneur, you narrow down your problems to ‘lack of money’ to; expand, import equipment, acquire stock among others. This then leads you in a rush to get someone who has money and when they come on board, their demand for a quick return to their money begins to bog you down. Before you know it, conflict arises and you’re forced to close the business or borrow elsewhere to pay off this partner and reclaim your peace.

Alignment of vision is another serious challenge when partners are coming on board. Years ago, some young men I knew had started a successful Import business and were making some good money. While one of them wanted the company to grow and extend its tentacles to the entire East African region (having identified some particular products of interest), his partners begun pushing for the instant sharing of profits so that they could buy cars and other property of their choice. They lacked the patience required to re-invest the money in the business, watch it grow for a while before beginning to take out money. Despite it’s potential, the company wound up operations within a year.

Partners are not a bad addition to any business. Infact their presence helps in;

  • Beefing up skill sets. Starting businesses usually cant afford to hire people to carry out the various work demands. However, someone in exchange for equity could offer to avail their exceptional skills to the business.
  • Brainstorming. Without doubt, a new business requires a lot of brainstorming. Most times the way things are done especially market discovery in start-ups doesn’t follow the conventional route that most MBA lectures are likely to chart out. Having partners can help in this process and prevent a promising businesses from experiencing a still birth.
  • Pooling of Finances. The typical small entrepreneur is usually devoid of cash and we all know that you can’t totally avoid spending cash in business. Having partners tends to spread out this hurdle. When we were setting up our first business, I recall a bank requiring us to open a business account with the equivalent of US$ 1000 and the business registration required close to US$ 400. As young fresh graduates with hardly much to show for financially, this was a big constraint that we only overcame by sharing the bill.
  • Networks. We all don’t have access to the same networks. Business largely tends to be a game of networking. A customer can be a friend who recommends you to a friend who recommends you to a relative of theirs and the linkages grow organically. The presence of partners has the potential of doubling, tripling or even quadrupling these linkages there by offering your business greater sales opportunities.

To avoid the experience of that WhatsApp complainant, invest as much time in studying the kind of partners you want to bring on board your business. Sometimes you are better off prioritising Skills and Knowledge Contribution over Money. But above all, alignment of vision is very crucial.