Business Education: The Key to Entrepreneurial Success
The presentation delves into the crucial role of business education in fostering sustainable entrepreneurship. It highlights the challenges faced by new businesses and offers insights on reasons for their failure. The speaker emphasizes the importance of market understanding, adequate capital, competitive advantages, and proper skill set alignment for business growth and survival, drawing attention to common pitfalls to avoid.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Business Education: The Bedrock of Entrepreneurial Survival Olusegun Olukoya
Presentation Objective Share a few perspectives on starting-up and running a sustainable business enterprise
One Hundred Year Old Institutions How many NIGERIAN institutions can you identify that are over a hundred years old?
Success Rate of New Businesses % of businesses surviving No of Years Half of new businesses are gone within six years of starting Nearly two-thirds are gone within a decade.
Do you think this is a true reflection of the situation in Nigeria/Africa?
Source United States Bureau of Labor Statistics (BLS)
A few reasons why businesses fail Wrong Understanding of the Market - Viability (Relative to business scale) or Picking a Niche That is too Small (relative to the product/margins) Research and validate the market THOROUGHLY before you launch your business Talk to prospective customers and find out what they really need (Understand your customer) Understand the market dynamics Insufficient Capital (Start Small or Start Well) Be conservative with financial projections Staged investments - Plan on having adequate funds to cover costs (including startup losses) until your company becomes cash flow positive Explore availability of supplier financing Lack of Competitive Advantage(s) Herd mentality Identify what can insulate you from competition location, brand, technology , service
A few reasons why businesses fail Skill set mismatch Get the needed expertise (Yourself or a professional) Poor Pricing Strategy Cost + Margin Vs Value customers are ready to pay Growing too Fast Focus on cashflow always Poor accounting - flying blind Infrastructure????, Government Policy, etc, etc, etc
Step back and think, does any of this apply to you today? How have you dealt with it?
Going Forward Understand the problem Financial, Operational, Market, etc Seek Help in defining a solution Mentors Industry Leaders Experienced Consultants Execute, Execute, Execute Success is 20% inspiration and 80% perspiration
Failure is success if we learn from it - Malcom Forbes
Are you building your business to last for One Hundred years?
Corporate Governance A business is a distinct entity from an individual Instilling an appropriate framework for managing the rights and responsibilities of various stakeholders helps maintain that distinction Stakeholders in a business majority shareholders minority shareholders management, board of directors other stakeholders
A key Principle Agency the principle of transfer of capital from the shareholders to the control of managers. Stewardship the role of directors role as guardians of the company s assets.
Corporate Governance The average entrepreneur wears three hats SHAREHOLDERS Regularly reports MANAGERS DIRECTORS Oversee Each hat has a different objective, hence leading to potential tension
Tensions Dividend available to be paid vs. director remuneration Vs Executive Remuneration Management benefits vs. dividend Merger and acquisition vs. director entrenchment How you balance the tension is critical
Why? Good corporate governance contributes to business sustainability Better access to capital Command a premium from potential investors Improve oversight, monitoring Perform better operationally/financially Ensure effective decision- making
Steve Jobs Sometimes life hits you in the head with a brick. Don't lose faith. I'm convinced that the only thing that kept me going was that I loved what I did. You've got to find what you love. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. . So keep looking until you find it. Don't settle
The Successful Entrepreneur Passion for the Business Product/customer focus The Successful Entrepreneur Tenacity Despite Failure Execution Intelligence
