Globalization of the economy, the breaking down of national boundaries and the organization of nations into regional economic blocs have made the business environment complex and continues to threaten the survival of many Kenyan businesses, according to a Nairobi-based Knowledge Centre.
Sustainable Inclusive Business (SIB) – a partnership between the Kenya Private Sector Alliance and MVO Nederland with the support of the Embassy of The Netherlands – says whereas these developments have come with incredible benefits, the immense challenges for big and small business cannot be understated. “Markets have expanded, information has moved from the physical library to the tip of our fingers and opportunities for affordable marketing have literally flooded the market,” said SIB’s Karin Boomsma.
However, she added, this means the competition is no longer the company next door but likely an India or China based manufacturer operating with better technology, cheaper electricity and labour, better infrastructure and possibly, government subsidies. The fisherman in Lake Victoria, for instance, has to compete for the local market with the Chinese large scale fishing concern employing advanced trawlers, highly trained manpower and computer software in the background.
To survive in this increasingly complex environment, Ms Boomsma proposes five fundamental factors which every business must keep in their radar or risk losing out altogether. “Smart businesses take care of the little things,” said Boomsma.
Businesses grow big. Sometimes they become so big that the little things that made them great in the first place are forgotten. You know things like personal touch, the local community, the junior employees or the customers that don’t buy much. Success begins to look so natural, only it is not.
Little things matter: Smart businesses, according to Boomsma, are different. Here, the little things matter. To them, success is the reward of consistently providing superior service with pride and a professional flair. The customer, however insignificant, remains king both in word and deed. As a result, they are able to read the customers’ needs and avoid the pitfalls that come with being flippant.
Integrity: Ms Boomsma’s second take away may seem natural but recent events show it is always the first casualty when greed enters the equation. “Integrity in business is so important that it should be written in the hearts and faces of all employees,” she says. The very nature of the business should exude integrity. Yet in an increasingly competitive world, it is easy for directors and shareholders to make decisions that could get the business in trouble with the law, leading to costly penalties and loss of face in the eyes of customers, suppliers and investors.
Go green: Ms Boomsma advises businesses to think about water, electricity and people in the neighbourhood, particularly during the good times. Smart businesses, she states, always go ‘green’ in every aspect. They tap into solar energy, their offices are built with conservation in mind, they are never extravagant and what is considered ‘waste’ by others is converted into something useful for the low end market.
Innovation: Did you see how Uber disrupted the local transport business? Does anyone reading this piece remember the once ubiquitous brand, Nokia? Do we remember how cyber cafes once dotted every street corner in downtown Nairobi? “Cash flow may be the life blood of any business but innovation is the heart beat that pumps blood to all parts of the body. When it stops, the business degenerates into a vegetative state,” asserts Boomsma.
Care to be inclusive?
What does it mean for a business to be inclusive? Think about profits. Think about the earth. Also think about the people. An inclusive business does not compromise on its profit nature. For without profits there will be no business. But it goes another level beyond profits. It strives to ensure that some or all of its products and services are designed to empower the people.
The people see their lives as intricately intertwined with that of the business. They become genuine stakeholders rather than recipients of occasional generosity from the company. The smart business also ensures that its operations or the byproducts of its operations contribute to making the earth a better place not destroying it. People may not say it, but they appreciate inclusive businesses.
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