What does it take to become a successful entrepreneur?

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