As we observe World Entrepreneur Day on Wednesday — a day to celebrate the small and medium-sized enterprise (SME) visionaries driving innovation and economic growth — it’s all a little bittersweet. We have so many talented and enthusiastic entrepreneurs in South Africa, but there’s still a lot standing in the way of their success. Just this year, more than 600 businesses have shut their doors already.
And, according to the 2023 Global Entrepreneurship Monitor South Africa (Gemsa), entrepreneurial activity has dropped to below pre-pandemic levels.
After years of struggling in a limping economy, many entrepreneurs are feeling the effects of shrinking client budgets. This and other challenges — such as problems with infrastructure, electricity, regulation and compliance, skills shortages, and more — make the mountains to climb seem endless. It’s no big head-scratch, then, to see why small businesses are failing within the first three years of trading.
On a recent episode of the SAICA Biz Impact podcast, I spoke with business coach Pearl More, who stressed that “no man is an island”, which means we all need a little help from time to time. She spoke about business mentoring and coaching, as well as the role it can play in helping businesses navigate tough times, and stressed it was something more entrepreneurs should consider. It can be the lifeline you need to prevent you from giving up.
The barrier, I argued, is that there’s general fatigue and a mindset among small business owners that “we are over-coached and over-mentored, but under-funded”. With funding being one of the main obstacles small businesses face, it remains a critical problem in the SME ecosystem.
Coaches provide an outside perspective, helping you to see your business challenges from a different angle. This can lead to better decision-making
According to Pearl, there’s often a knowledge gap for entrepreneurs not only on their options for securing funding, but how to apply for it so that applications are successful. This is where business mentoring can help, because the role of the coach is to walk the journey with the entrepreneur and ensure that by the time he or she submits the funding application, all the boxes have been ticked.
The difference between business coaching and mentoring lies in the level of engagement. Mentors are individuals who have walked the entrepreneurial path and can share their experiences and insights. Coaches, on the other hand, are actively involved in guiding entrepreneurs through their business journey.
Is business coaching a silver bullet? Not by any stretch of the imagination. But I do believe it’s worth asking for help. We need small businesses and entrepreneurs to help get our economy back on its feet. With an unemployment rate of 32.9%, SMEs can be a driving force for economic growth and development, and they need to be nurtured. More importantly, to face adversity head-on and stay in the game, owners and managers of small businesses need the tools to be resilient.
Here's how business coaching and mentoring can help entrepreneurs keep focused and stay on course:
Adaptation to change: Whether it’s market shifts, economic changes or unexpected challenges, a coach can help you adapt and pivot your business strategy to navigate uncertainty.
Skills development: Coaches can help you develop key business skills such as in financial management, marketing, sales and operations. They can also help you to become a more effective leader, which is critical for managing teams and inspiring others.
Defining goals: Being able to define and articulate your business goals can keep you accountable and on track. Coaches can help you put a clear plan in place and ensure you prioritise tasks effectively.
Accountability: With regular check-ins, a coach holds you accountable for your actions and progress. This accountability ensures you stay the course and follow through on your commitments.
Improved decision-making: Coaches provide an outside perspective, helping you to see your business challenges from a different angle. This can lead to better decision-making by helping you to identify blind spots and consider new approaches.
It is a myth that business coaching is unaffordable. There are many corporate and social enterprises that offer free coaching services. Do some research and find out which networks to join so you can leverage these opportunities to gain valuable insights and support.
• Mtwentwe, an AGA(SA), is a director at Vantage Advisory, an associate of SAICA, and the host of the SAICA Biz Impact podcast. He has more than a decade of experience in accounting, finance and business advisory.
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