Technological innovation has triggered a new trend internationally – the need for large companies to become more “entrepreneurial”.
Dr Gorkan Ahmetoglu, co-founder of Meta Profiling and lecturer in business psychology at the University College of London, says although many companies talk about “incorporating new technologies”, they are in fact doing nothing at all. The reason is that people are not sure what to do or they are too comfortable. However, there will be an incremental move towards innovation and creating entrepreneurial ecosystems. “Companies no longer have an option. It is now the stick rather than the carrot,” he said at a breakfast hosted by JvR Africa Group in Johannesburg. Many companies are “almost panicking” about all the new technology needed to remain relevant and competitive. He refers to data which indicate that 50 years ago the average lifespan of a company in the S&P 500 Index was 60 years. Today it is 12 years. “In 10 years’ time most of the companies listed on the Index will be companies we have never heard of,” says Ahmetoglu. Disruptive technology Innovation has changed the way we do things. It has changed business models. The world now talks about the gig economy, the on-demand economy and the sharing economy. In the gig economy organizations often contract with independent workers on shorter term contracts. The on demand economy is enabled by the rating economy – everyone is rated like products – Uber drivers rate you and you rate them. We will have on-demand managers, lawyers and even doctors and they will be chosen because of their ratings – mainly by total strangers. In the US there is the concept of rating your professors on overall quality, helpfulness, clarity and “hotness”. The internet has made it easier for people who have usable assets such as cars (Uber) and property (Airbnb) and those who want to use it, to find each other. This economy is also referred to as collaborative consumption and collaborative economy. Entrepreneurial talent Ahmetoglu says for a company to become entrepreneurial it needs to identify the entrepreneurial talent within the organisation. Meta Profiling has done more than 100 empirical studies to identify the key characteristics of entrepreneurial talent. It includes:
Ahmetoglu says bureaucratic cultures in an organisation lead to the disengagement or loss of entrepreneurial individuals. Entrepreneurial ecosystem He warns against the “over romanticising” of entrepreneurship. He says when there is growth in the number of “start-ups” in a country, it is a sure sign there is something wrong with the economy. The key is to optimise entrepreneurship and innovation within companies. Leadership needs to promote an innovative culture, there has to be mechanisms to test ideas, decision-making cannot take forever, managers must be able to implement innovative ideas, and all good ideas must be rewarded, not only the ones that made the money, but also the ones that did not. Optimise entrepreneurship Ahmetoglu says the “rule of thumb” is to have people who will come up with good ideas. Their ability to use information to connect the dots will assist with predicting consumer demands. No matter how innovative people are, they still need the tools and encouragement to implement the ideas. “Innovation is also relative and contextual to a particular company – it is not general and absolute. The main factor is to analyse your competitors and recognise what it is, that you have to be a little better at.” Invaluable benefits Dr Jopie de Beer, CEO of the JvR Africa Group, says many large corporates employ entrepreneurial talent. The trick is to identify and nurture them. Having a mix of entrepreneurial talent in the organisation can provide invaluable benefits with regards to staying abreast with technological and other innovations. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za ABOUT JvR Africa Group: JvR Africa Group of companies consist of JvR Psychometrics, JvR Consulting Psychologists, JvR Academy, and JvR Safety. With it’s head office situated in Johannesburg; the group conducts business nationally and across Sub-Saharan Africa. They work with test developers, consultants and academic institutions all over the world and supports a range of development opportunities and hosts events around People Development in Africa, a cause they feel is extremely important to the future of our continent. For more information on JvR Africa Group please visit: Website: https://jvrafricagroup.co.za/ LinkedIn: JvR Africa Group Facebook: The JvR Africa Group - People Development in Africa Twitter: JvR Africa Group YouTube: The JvR Africa Group
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South Africa boasts some of the best-known entrepreneurs. However onerous compliance processes and rigid legislation tend to dampen the entrepreneurial spirit needed to get people employed and the economy growing.
Dr Jopie de Beer, CEO of the JvR Africa Group, says some societies are considered naturally entrepreneurial. The jury is however out on how many South Africans are entrepreneurs by nature or by choice. “As South Africans we have a reputation of being innovative, problem solving oriented and able to fend for ourselves. These attributes can sit well with entrepreneurship. I think it could be in our make-up to be entrepreneurs, but the environment needs to allow for that.” She refers to statistics which show that between 70% and 80% of all entrepreneurial businesses fail in the first five years. Why so many fail Dr de Beer says there may be many reasons why entrepreneurial businesses fail. It could be related to the very flat economy, difficulties to obtain funding-, mentoring and support, excessive red tape, turbulence in the exchange rate and/or slow payments from government and the private sector for products/services provided. It may also be that assumptions about entrepreneurs are “off the mark”. Some believe that having a good idea and adequate funding will guarantee entrepreneurial success. This assumption does not reflect in reality. Entrepreneurial businesses require knowledge and understanding of finances, business plans, marketing and networking initiatives, good products, innovative ideas, client management processes, technological savvy, compliance to legal requirements and more. Much of this, in the early stages of entrepreneurship is guided and managed by the entrepreneur. The hardwiring of the entrepreneur, and the people he/she surround them with is critically important in the growth- or demise of the business. “Entrepreneurship is probably the most stressful career option one could choose. Many people, if they have a choice between a stable, seemingly secure income, or the extreme hard work and risk that comes with establishing an entrepreneurial business, will go for the secure job,” Dr de Beer points out. Why we need more entrepreneurs The unemployment rate, especially under South Africa’s youth, is alarmingly high. One would think that entrepreneurship should be the answer to address this, and that more opportunities for more people are created to start a business. Establishing entrepreneurial businesses however require that the business environment is supportive and that the entrepreneur as a person has the knowledge, competence and resilience to make it work. “I can only hope that the massive issue of growing unemployment and the social evils associated with that, the personal issues in terms of self-regard and self-pride and the enormous negative implications of not being able to earn an income will bring insight and willingness to make South Africa an entrepreneur-friendly country,” Dr de Beer says. The making of an entrepreneur There are entrepreneurs by choice (the passionate and the serial entrepreneurs) and then there are those who have been pushed into it because there was no other choice (the survivalist). “It is essential to regard the entrepreneur as the golden thread in the business,” Dr de Beer notes. It is the entrepreneur that initially takes the decision to start a business, to identify/construct/innovate a product, to believe in it to such an extent that they work 24/7 to ensure its uptake in the market. The entrepreneur is also a leader, shows good/bad judgment in selecting products and partners, makes business decisions on spending, cashflow and expansion, employs staff and has to keep them engaged and motivated. Psychometric assessments are valuable tools to identify, support and develop entrepreneurs. The purpose of these assessments includes providing the entrepreneur with the required self-insight to constructively manage his/her role in the business. In addition, Dr de Beer says it is helpful to take a “helicopter view” of yourself. “Think about how you feel when you have to perform certain tasks. When do you procrastinate, on what do you spend a lot of time, and what do you enjoy doing”. Role of government Dr de Beer urges that government has to be more flexible on issues of governance and red tape for entrepreneurial businesses to survive those initial five years. Entrepreneurs need an environment where there is economic growth, political stability and the necessary infrastructure (such as affordable internet access) to thrive. It is essential for governments to nurture entrepreneurial activity as this is a source of employment and of generating income through taxes. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za ABOUT JvR Africa Group: JvR Africa Group of companies consists of JvR Psychometrics, JvR Consulting Psychologists, JvR Academy, and JvR Safety. With it’s head office is situated in Johannesburg; the group conducts business nationally and across Sub-Saharan Africa. They work with test developers, consultants and academic institutions all over the world and supports a range of development opportunities and hosts events around People Development in Africa, a cause they feel is extremely important to the future of our continent. For more information on JvR Africa Group please visit: Website: https://jvrafricagroup.co.za/ LinkedIn: JvR Africa Group Facebook: The JvR Africa Group - People Development in Africa Twitter: JvR Africa Group YouTube: The JvR Africa Grou |
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