The African Entrepreneur and the Hard Bootstrapping Truth.
By Jude Thaddeus.
Image: The Entrepreneur
It is a new year! And, as tradition dictates, many would still sit down to set up new goals for the year — or at least, new strategies and tactics for the same goal that hadn’t quite been achieved at the turn of the year. Goals that most of the time would revolve around family, relationships, health, career and more often, financial freedom.
The last two years have seen the entire World rotate over uncharted waters. Deaths, health complications, job / income losses, debt, divorse plus family separations, conflict, insecurity et cetera. Situations that existed before — only accelerated through the Covid pandemic.
Most individuals at various stages of their entrepreneurship journeys hit rock bottom. And they witnessed the worst of times. But for those who still have a little hope, and a little courage left, they are looking forward to rebuild.
But where does the African Entrepreneur, in the Continent, stand?
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The Continent of Africa for the longest time has been grappling with a myriad of issues. Top among them today is the rise in unemployment cases —amidst a bulging youthful and energetic population. Making the entrepreneurship quest less about innovation, and more about job market substitution.
That, African Governments, acknowledging their inability to expand the various economies in tandem with increasing populations, have left the Africans — majority of whom are youth — to their own instruments of ‘entrepreneurship’
Thus, these ‘African enterpreneurs’, today remain mere experiments in the face of shrinking or stagnating economic opportunities.
Entrepreneurship Yardstick.
The rise in Silicon Valley success stories — especially in the field of technology and related internet advancements — remain the ultimate measure of entrepreneurship for today’s generation. That, collage dropouts can turn out to be dollar billionaires out of their innovations. That, you just need to be creative, work smart and hard, and it is all systems go! That, you can even start out of your parent’s garage. Sounds easy, right?…….. No
Most of the time, the privileges and incentives that have allowed some of these enterprises to flourish, are never really analyzed. The focus has only been on the final product, the entrepreneur and the starting point. Most of the time, what I would like to call ‘the turning point’ is never really discussed.
This turning point, is more often than not, oiled by privileges, incentives, policy interventions among other instruments within the network economies.
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If we use Apple’s co-founders, the late Steve Jobs and Steve Wozniak for instance. Apart from them being tech innovators, we must appreciate some of the privileges that allowed them to experience their turning point. After Steve Jobs failed to secure bank loans for his brilliant ideas, he had to sell his car to raise capital. Steve Wozniak equally had to part with an item. And along the process, since entrepreneurship is a difficult journey, one form of financial assistance or the other was secured. Including raising money from the parents of some of their friends.
Their first office was Steve Jobs’ parents’ garage. An incentive on its own. No rent. No logistical hustles. Which provides an incentive to remain focused eliminating unnecessary setbacks.
The privilege of having items that can be sold to raise capital. The privilege to have a functional network economy where money can be raised through family and friends. The privilege to eliminate logistical nightmares in this journey of entrepreneurship. All provide the needed oil to achieve the required turning point.
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But don’t get me wrong, having all the above does not necessarily translate to success. There are equally numerous instances of failed ventures. Including in the very same Silicon Valley.
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Today, capital is raised almost in a similar fashion. The first stage remaining family and friends as a source. Then early stage investors and early stage customers. These must be individuals who are convinced that your product is authentic and will make it to the market. And some are willing to pay for the product even before it is launched. But before getting to that stage, remember, you would have already been on the move to get noticed.
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The number of African entrepreneurs who are able to successfully fulfill some of these realities in the Continent remain a minority. Many, as much as they may have brilliant ideas, are torn between creating time, space and resources to establish their ideas, or going out to look for the days meal. Because the reality of putting food on the table, on a daily basis, does not have the patience for innovation — that sometimes might take years to fulfill, or fail.
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Having done projects with artists, I usually give an example of this visual artist. Who, for them to complete their desired piece of art, they require almost two (2) weeks of uninterrupted work. They first start by purchasing all the needed materials. Then, get straight to work.
Two weeks is already half a month. And at the end of the month, they need to be ready with rent money. All through, they need food and other needs that cost money. They need to take care of other bills too. But remember, two weeks have already been eaten up exploring creativity. Then, there is no guarantee that that piece of art will be sold immediately afterwards to compensate for the already ‘lost time’
A scenario way too common in the entrepreneurship terrain. That sometimes make an entrepreneur wonder whether they should just get a ‘real job’. And be like everyone else.
But, this artist equally stands a chance of selling their piece of art at a premium price. A price that might change their entire life for good.
The patience to continue producing art, will at the end of the day be influenced by privileges and incentives. Or, lack of them. If this artist gets a garage where they can stay rent free for a while, as they focus on creativity, then they might push until they achieve their turning point. But if the going gets tough, circumstances might as well force them to abandon their quest and look for a ‘real job’
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This is the dilema that African youth in general, and entrepreneurs in particular are finding themselves in. There are those who want to innovate, but abandon the dream way too early due to unavailable incentives and government interventions — that will enable them achieve their turning points. Then there are those, who, out of their inability to secure jobs — due to Africa’s shrinking job opportunities against bulging populations — have been advised to try out entrepreneurship. Just for the sake of ‘doing something’
The reality, for both categories, remain that they are being called to bootstrap themselves, without proper laid down incentives that are critical to accelerating growth and success.
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And that is why it is not surprising today, to mention the majority of ‘African startups’, complete with Africanized names, that are completely foreign owned. Some would only have one or two African faces for the purposes of inclusion.
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It is therefore upon African Governments not to look at entrepreneurship as an excuse to their failure to create sustainable jobs for the growing populations. But rather, focus on it as a means to innovate the future — which should aptly be accompanied by well set out interventions for real and tangible growth.
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And to you the African Entrepreneur, it is yet another year. Few might understand what you are up to, or going through. Your Government might not even have a clue. But you have to keep pushing. Keep lobbying for a better environment. Because the fact of the matter remains, a conducive environment has to be in place for you to achieve your ‘turning point’
About the author;
Jude Thaddeus is an Entrepreneur, a Sociopolitical Commentator / Strategist, Author, and Team Lead @ Brave Politics.
