Nkosinathi Mahlangu | Head | Youth Employment Portfolio | Momentum Metropolitan Foundation | mail me |
Ask any budding young entrepreneur in South Africa what they need most, and they will probably rattle off a list as long as your arm: Some moola to invest in their business. A stable electricity supply. The eradication of crime that destroys businesses and results in financial loss. Lower borrowing costs. Reasonable interest rates. And the list goes on.
In fact, these are among the most common challenges listed by entrepreneurs, as revealed in the Business Partners Limited SME Confidence Index released at the end of last year. And while there’s sadly not all that much that entrepreneurs can do about any of these, the good news is that there are proactive steps that they can take that will help them develop the “mental toolbox” they need to succeed.
A strong support system
A strong support system creates an enabling, empowering environment, which is very important for entrepreneurs. This could be through a form of mentorship or peer-to-peer learning, or involve mixing with like-minded individuals, like a networking session and workshop we recently facilitated together with My Dough for young entrepreneurs.
Those born into wealth often have the benefit of having a network of successful people around them, which creates more opportunities. If you are not born into riches, you will need to work even harder to create your own network, which you can do by being proactive and by leaning on your community.
Having a strong community around you acts as a sounding board, allowing learning to happen, creativity to flourish, and ideas to incubate through the richness that diversity of perspectives brings. This is where the magic happens!
Financial literacy
You don’t need to be a maths whiz to run a business, but you do need to understand the basics, such as how to draw up a business budget and manage cashflow, as well as terms like income and expenses, assets and liabilities, and debit and credit.
The good news is that there are many great resources out there, many of which are free and can help you get up to speed quickly, such as Making it with the Majolas – a free online course that teaches financial concepts for entrepreneurs through storytelling.
Which brings us to…
Resourcefulness
Successful entrepreneurs are usually those who are resourceful. To be resourceful means being able to find new opportunities in your environment or clever ways to solve problems that might arise. In other words, you can use what you have to succeed, rather than focus on what you don’t have.
Firstly, you will need to refocus your mindset. Never mind a mindset of “can do”, yours should be “will do”, meaning you will find a way to make something happen. Be creative and curious, constantly seeking new ways to realise your goals.
Self-belief is powerful. You will be surprised how many opportunities present themselves when you refuse to take no for an answer.
Mental resilience
Being an entrepreneur is tough, but being one in South Africa – with our challenging economic landscape – is even tougher. This is where mental resilience, or the ability to cope with or adapt to difficulty and uncertainty, is so critical.
But how to do this? Keep your circle close around you – people you can rely on not only to support you but who will tell you when you’re not on the right track. That kind of honesty is invaluable.
Also, find time to yourself and prioritise your health and rest. This can be difficult, especially when you’re driven to succeed, but these periods to recharge will give you a better perspective and help support a healthy state of mind.
The above tools cut across economic activity spheres, and are also important for those who are employed or seeking employment, as those who are journeying towards entrepreneurship. We need young people to be resilient and innovative in their quest to unlock economic opportunities.
