Uganda is ranked the most entrepreneurial country in the world with an entrepreneurial rate of 27.3%. The more it is said the more it becomes puzzling how a country with the highest entrepreneurial rate in the world can have relatively high levels of unemployment, right? I believe that one of the ways to get to the bottom of this is to closely examine the health and life cycle of these enterprises that are mushrooming around us.
Don’t get me wrong, Initiative is good. However, Initiative without direction can only end one way. Premature death. One of the key contributors to the Enterprises’ premature death is the lack of mentor-ship and financial management. Over the next few weeks we will look at how we can get together and make our contribution to society on this front. Today we start at the foundation presupposing that you have a carefully laid out business plan.
Every enterprise needs a capital investment to get off the starting blocks, and the best source of capital for your business is your savings. Your savings are interest free which gives you room to make mistakes and improve without a bank manager breathing down your neck for a substantial repayment that you can’t raise yet. If you are in full employment you too can be an employer to someone in your homestead or back in your village. Your monthly paycheck can translate into savings that could be the source of your business capital.
Every start-up will have a potentially huge expenditure line and if not watched closely this can be your downfall. It is important to spend on basics to get your enterprise up and running. Invest only in Human and Marketing resources that will build on your Return on Investment in the short term and medium term. Use this time to study your industry and its related dynamics. This will guide your future investment decision when the opportunity to expand presents itself.
Find yourself a mentor in your chosen field of enterprise that will coach and mentor you. Your mentor will give you tips on how to grow your business steadily, advise you on what pitfalls to look out for and how to avoid them. Experience is priceless but there is no need for you to have to make your own mistakes to learn. You will save yourself time and money if you can study and learn from others’ experience.
If you are an already established Businessman or Businesswoman, I challenge you to pick up one or two young and upcoming entrepreneurs that you are going to mentor and coach to help them succeed.