Do Generation Y’s aspiring
entrepreneurs have what it
takes to create a successful
business?
In the freight industry,
entrepreneurship has
flourished – but those who
have achieved success are
unanimous that perseverance
and endurance are essential
ingredients in the mix.
SA’s young entrepreneurs
are handicapped in that they
‘don’t have the patience gene’,
says Tshepo Phakathi, Group
CEO of Phakathi Holdings,
whose KAELLO initiative
promotes entrepreneurship
and mentors thousands of
young aspirant entrepreneurs.
Phakathi says times have
changed. Where business
once took around 20 years to
achieve substantial success,
technology now makes it
possible to penetrate markets
faster. However, it still takes
years to achieve success, a fact
that escapes too many young
entrepreneurs.
Phakathi points out that
the people who tend to make
it in business in the long run
are those with endurance.
“What takes time in business
is building credibility and
contacts – there’s no substitute
for time,” he says, adding: “It
takes 20 years to get 20 years’
experience.”
Simon Mtsuki, motivational
speaker and MD of SGM
Motivations, says Generation
Y tends to expect instant
results and instant success in
their own businesses too. “Too
many young
entrepreneurs
go into business
with the
‘America dream’
approach – they
expect things
will happen
quickly, or
funders will step
in and make
it happen, like
it happens in
the movies. Of
course, this is
not the reality.
And when
entrepreneurs
are faced with
the harsh realities of starting
a business in the real world,
they might give up, or turn to
unethical practices.”
The freight industry
has over the years been a
fertile breeding ground for
entrepreneurship, with many
of the current majors having
started as one- or two-man
shows.
CargoCare CEO Roland
Raath fully agrees with the
assertions about Generation Y.
“They are generally under
35 and will give you great
work between 8am and 5pm,
but a minute past five they
have a life outside of your
company.”
He believes they sometimes
lack people-handling skills
because their medium of
communication is largely
by text. “If you’re driving a
business in the service arena
you need good business skills.
You need to be the thermostat
not the thermometer. A
thermostat
brings the
temperature
down and lifts
it up when it’s a
bit slack.”
It’s taken
15-18 years to
get CargoCare
to its current
status – and
that has
required
consistency at
every level, says
Raath – service
levels, handling
of staff and
sales – lessons
that the often impatient and
entitled Generation Y have
yet to learn. Integrity too
is a major factor with no
shortcuts.”
DSV CEO Warren
Erfmann adds endurance to
the essential qualities of the
successful entrepreneur.
“Entrepreneurs are by
nature looking for
opportunities to
do things better,
smarter and
faster without the
handcuffs of a
more structured
environment
where they’re
hamstrung
by rules and
regulations and
innovation isn’t
necessarily a part
of the DNA,” he told FTW.
“Endurance is a big part of
business success, and while
the internet with its access
to information means the
world is moving faster than
ever before, follow-through is
critical,” he said.
Erfmann, along with Peter
Schmidt-Löffler, launched
forwarding company ZA
Trans in 1994. Ten years later
it was sold to Barloworld.
“Although we were
profitable from day one,
it took two to three years
to achieve real success,”
said Erfmann. “Generally
speaking, ours is not an
industry where you can
achieve success from day
one. It’s a slog and
you’re often going
to make losses
before the
business turns,
hence the reason
it is imperative to
plan for the long
term as well as not
give up easily.”
For CompuClearing CEO
Arnold Garber who saw an
opportunity 30 years ago
and converted it into a multimillion
rand business, the
key to launching a successful
business is about identifying
gaps so that you can offer
products and services that
don’t already exist. It’s also
about identifying products
offered by other companies
that are not provided to a
standard.
“And then it’s about
bending over backwards for
the customer. Often it’s not
difficult to get a new customer,
however our emphasis is on
retaining them. Most of our
customers have been with us
for decades..”
And he has
identified several
Generation Y
CompuClearing
staffers with
the passion and
dedication to
make it happen.
INSERT & CAPTION 1
Generation Y
sometimes lacks
people-handling
skills because
their medium of
communication is
largely by text.
– Roland Raath
INSERT & CAPTION 2
Ours is not an
industry where you
can achieve success
from day one. It’s a
slog and you’re often
going to make losses
before the business
turns.
– Warren Erfmann
INSERT & CAPTION 3
It’s about identifying
gaps so that you can
offer products and
services that don’t
already exist.
– Arnold Garber
