Siphakeme .Mnindwa
Innocent Hadebe
ZIMBABWE is a country known for its resilience and entrepreneurial spirit. It has seen a significant number of start-ups and businesses emerging over the years with some succeeding while others continue to face numerous challenges even after injecting a lot of capital into the business.
This is also despite the Government’s efforts to create a conducive business environment for entrepreneurs to thrive.
Most entrepreneurs assume that workers are motivated by money only and they set targets that are difficult to achieve through employees who are mostly not skilled and the reason is that they don’t conduct an evaluation analysis of their internal factors and external factors.
Most business owners are slow to upgrade their machines or send their workers for refresher courses. Even though in most cases the worker would be motivated by money, the same worker would be demotivated by a poorly functioning machine or a computer.
In this article, we will explore some of the reasons behind the high rate of entrepreneurial failures in Zimbabwe, with a particular focus on the lack of knowledge on SWOT analysis and other management tools.
Lack of knowledge on SWOT analysis
The acronym SWOT is a vital business tool that every serious manager or business owner should be well-versed with and consider in the running of their business. SWOT helps entrepreneurs identify their strengths, weaknesses, opportunities and threats. This tool is essential for developing effective business strategies and making informed decisions.
Strengths are internal factors that take place inside the company. They include factors such as highly skilled employees, good reputation of the company and motivated employees. Weaknesses are internal factors that render an organisation weak such that they can be taken advantage of by competitors to upstage the business.
These are factors such as the poor reputation of the organisation and poor quality materials among other factors.
Opportunities are external factors such as market partnerships technological advancements and new market segments. Threats are external factors which include new regulations, a new competitor entering the market or economic changes.
However, many entrepreneurs in Zimbabwe lack a basic understanding of SWOT analysis, which puts them at a disadvantage.
This lack of knowledge can lead to poor decision-making, inadequate risk assessment and failure to capitalise on opportunities.
As a result, many businesses in Zimbabwe struggle to stay competitive and their owners are often left wondering what went wrong.
Other knowledge gaps
In addition to the lack of knowledge about SWOT analysis, entrepreneurs in Zimbabwe also struggle with other important management tools, such as:
Cash flow management: Many entrepreneurs in Zimbabwe have little understanding of how to manage their cash flows, which can lead to financial crises and business failure.
Marketing strategy: Without a well-defined marketing strategy, entrepreneurs in Zimbabwe struggle to reach their target audiences and compete effectively in the market.
Risk management: A lack of knowledge on risk management can lead to entrepreneurs taking unnecessary risks, which can have disastrous consequences for their businesses.
Financial planning: Many entrepreneurs in Zimbabwe have not developed a comprehensive financial plan, which can make it difficult for them to secure funding or manage their finances effectively.
There are several reasons why entrepreneurs in Zimbabwe lack knowledge on management tools, including limited access to training where many entrepreneurs in Zimbabwe lack access to formal education and training programmes, which can provide them with the necessary knowledge and skills to succeed in business.
Some also lack the necessary resources with many entrepreneurs struggling to access the resources they need to succeed, including funding, mentorship and training.
Cultural and social factors also play into business failure where in some cases there is a lack of knowledge on management tools among entrepreneurs in Zimbabwe with some entrepreneurs viewing management as a Western concept that is not relevant to their business.
The high rate of entrepreneurial failures in Zimbabwe is a cause for concern. By recognising the knowledge gaps that exist among entrepreneurs in the country, we can begin to address these gaps and provide the necessary support to help them succeed.
This includes providing access to education and training programmes, as well as resources and mentorship. In particular, it is essential to promote the use of management tools, such as SWOT analysis, cash flow management, and risk management among entrepreneurs in Zimbabwe.
By doing so, we can help them develop the skills and knowledge they need to succeed in business and contribute to the growth and development of the Zimbabwean economy.
Innocent Hadebe is a United States of America-based certified John Maxwell Leadership business coach and mentor. Through his organisation- the Innocent Leadership Group (ILG), he is capacitating upcoming entrepreneurs with the requisite skills to effectively run their businesses.
