• About Us
  • Write for Us
  • Paid Content Solutions
  • Contact Us
ExpertHub
  • HOME
  • LAUNCH
  • BUSINESS
  • LEADERSHIP
  • MONEY
  • SUCCESS
  • NEWS
    • All
    • Company Posts
    • ExpertHub Today
    Transunion Global Capability Centres Boom

    Global Capability Centres Boom As They Move Up The Value Chain

    Global Tech companies

    Global Tech Companies Are Turning To South Africa For Media And Marketing Expertise

    Innovation Summit

    Innovation Summit 2021 Showcases SA’s Top Tech Entrepreneurs

    Three customer experience strategies you’re missing-23Sep21

    Three Customer Experience Strategies You’re Missing

    Embracing digital 1st world, SMBs confid. to thrive-23Sep21

    Embracing A Digital-First World, SMBs Can Have The Confidence To Thrive

    SAB Foundation Calling All Entrepreneurs Tholoana Entps. Prog.

    Applications for SAB Foundation Are Now Open

    Trending Tags

    • About Us
      • Write for Us
      • Paid Content Services
      • Contact Us
    No Result
    View All Result
    • HOME
    • LAUNCH
    • BUSINESS
    • LEADERSHIP
    • MONEY
    • SUCCESS
    • NEWS
      • All
      • Company Posts
      • ExpertHub Today
      Transunion Global Capability Centres Boom

      Global Capability Centres Boom As They Move Up The Value Chain

      Global Tech companies

      Global Tech Companies Are Turning To South Africa For Media And Marketing Expertise

      Innovation Summit

      Innovation Summit 2021 Showcases SA’s Top Tech Entrepreneurs

      Three customer experience strategies you’re missing-23Sep21

      Three Customer Experience Strategies You’re Missing

      Embracing digital 1st world, SMBs confid. to thrive-23Sep21

      Embracing A Digital-First World, SMBs Can Have The Confidence To Thrive

      SAB Foundation Calling All Entrepreneurs Tholoana Entps. Prog.

      Applications for SAB Foundation Are Now Open

      Trending Tags

      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us
      No Result
      View All Result
      ExpertHub
      No Result
      View All Result
      Home BUSINESS Doing Business in SA Business Landscape

      Micro-Entrepreneurs Making An Impact in Less Developed Communities

      The study reinforces the fact that we are living in a global world where the power of management technology can be used across the world for the betterment of mankind.

      John Roberts by John Roberts
      Jan 23, 2019
      in Business Landscape
      59
      south-africa-micro-business
      Share on FacebookShare on TwitterShare on LinkedIn

      RelatedTopics

      This Is The Future Of Logistics – Are You Ready?

      5 Emerging Vital Trends In The Logistics And Shipping Industry

      2019: The Year For Composure In The Construction Sector

      One might well ask, “What do micro-entrepreneurs in urban and slum neighborhoods across Cape Town, South Africa have to learn from the elite business schools of the world? It turns out that the answer to this question is: “Plenty.”

      I recently had the honour of being Chairman of Judges of the prestigious Gary Lilien Practice Prize given by the INFORMS Society for Marketing Science, in conjunction with the Marketing Science Institute and the European Marketing Academy. The award winning study proves that the tools of marketing science can make a major positive impact in helping to grow disadvantaged economies like the ones in Cape Town.

      The award winner was a 2016 study of 850 Cape Town entrepreneurs led by Stephen Anderson-Macdonald of Stanford University, Rajesh Chandy of the London Business School and Bilal Zia of the World Bank. They tested three interventions when trying to gauge the best way to help small retailers in the slums of South Africa grow their business: The first group was given training in marketing and sales, the second group was given training in finance and accounting, and the third control group was given no assistance, being told that they would receive training on the next round.

      The researchers found significant improvements in profitability from both types of business skills training, relative to the control. Monthly profits increased by 30-40% on average for both. However, more interestingly, the way these gains were achieved differed substantially between the two groups.

      The small business owners who received marketing training tended to improve and become more profitable through a focus on growth. They increased sales, purchased extra stock and materials, and added more part-time sales staff. These entrepreneurs also implemented more marketing related business practices (e.g., market research, marketing tactics, sales tactics). By contrast, the finance group achieved similar profit gains but through an “efficiency focus” on lower costs and the use of more finance and accounting practices. While both led to more viable businesses, in terms of employment and business activity, it was marketing that grew the pie.

      The study shows that powerful 21st century tools are being used in the townships in South Africa and that they can be extremely effective.Anderson-MacDonald and Chandy’s suggested tools include:

      • Take time out from your day to day activities to think about your business. Don’t let your business be busyness.
      • Look at your business from the point of view of your customers and potential customers. Put yourself in their shoes so that you can feel the reaction that they have to your products and services. That will help identify where you can meet their needs better and any unmet needs that they might have.
      • Look for leverage points in your business. That is, where are the points where you can make the greatest change for the least amount of effort?
      • Think of the criteria of success for your business. For any initiative to succeed, it has to satisfy four criteria.
        • Can I do this? Understand your capabilities and how you are going to develop them.
        • Do I want to do this? Make sure you think about what you want to achieve and do those things which will get you to where you want to go.
        • Will customers value this? An analysis of the things that your customers value, need, want (such as consistency) and the things that they don’t (such as gold-plating) will help you.
        • Will the market let you do this? Have a good feel for the size of the market, the competition, your supply and collaborators, the economic climate and other environmental factors.
      • Generate options creatively. Take time to brain storm with your friends and family around new products and services, new customers and markets, opportunities to grow the value and frequency of purchase of your existing products, etc. Successful businesses recognise opportunities that others fail to see.
      • When you have done your analysis, generated your options for growth, work out a migration path. You have your vision, now you need that first step on the path to achieving it. Undertake little pilot projects, start by picking the low hanging fruit (the easiest opportunity), and don’t be discouraged by early failures but learn from them as much as you can.

      The study reinforces the fact that we are living in a global world where the power of management technology can be used across the world for the betterment of mankind.

      John Roberts

      John Roberts

      Quick Links

      • Business Plan Advice
      • Business Plan Format Guide
      • Business Plan Format
      • Sample Business Plans

      NEWSLETTER SIGN-UP

      Sign-up for Weekly ExpertHub Updates

      * indicates required




      EXPERT INSIGHTS

      Startup Content Marketing: 3 Things To Do Right Now

      Startup Content Marketing: 3 Things To Do Right Now

      by Frank Hamilton

      Content marketing has become so popular that brands both big and small eagerly use it in almost every marketing campaign....

      Work Life Balance - Morning Mindset Practices

      Morning Mindset Practices Are Key To Maintaining Balance

      by Sheila Vaske

      Work / Life balance is a huge topic these days, and one that really needs some attention. I hear it...

      Must-Have Mindset for Business and Leadership Success

      Must-Have Mindset For Business and Leadership Success

      by Laura Di Franco

      Business and leadership success start with a discipline of mindset moves, including having fun with your fear.

      Improve Customer experience

      7 Methods Merchants Can Use To Transform the Customer Experience

      by Frank Hamilton

      How You Can Transform Your Customer Experience And Why It Is Important

      • HOME
      • LAUNCH
      • BUSINESS
      • LEADERSHIP
      • MONEY
      • SUCCESS
      • NEWS
      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us
      • About Us
      • Write for Us
      • Paid Content Services
      • Contact Us
      • Terms & Conditions
      • Data Privacy Policy
      • Privacy Policy
      • Sitemap

      Copyright © 2022 ExpertHub.info
      Revenue Growth Experts

      No Result
      View All Result
      • HOME
      • LAUNCH
      • BUSINESS
      • LEADERSHIP
      • MONEY
      • SUCCESS
      • NEWS
      • About Us
        • Write for Us
        • Paid Content Services
        • Contact Us

      Copyright © 2022 ExpertHub.info
      Revenue Growth Experts

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In