12 replies to this topic

[Mwando]

Whats up with black Zimbabweans who buy big well known Zimbabwean brands and run them to the ground? The list of leading brands that have been run to the ground is now endless and its a painful because it is the who is who of Zimbabwean brands. I was pained to read about the Govere guy and the list of brands that he runs which are in the process of failing. Having watched the Zimbabwean business scene, each time I read that this consortium of black Zimbabweans is buying this well known company I wince because I know thats the end of it. From Phillip Chiyangwa killing G&D shoes, the killing of Lobels, the murder of Jaggers, how many other brands have met their demise at the hands of black entrepreneurs? Strive Masiiwa gives me hope, because he has been one of the few to build his business from bottom up to its current global position. He did that because he is a professional who hires the best regardless of colour. As black people are we inherently incapable of running big businesses? Do we really understand the concept of empowerment? To a large extent, its a good thing that idiots are failing, it means there will always be opportunities for others to come in with better ideas. We have no history of running big businesses like Jews for example who have done this for hundreds of years. Its only in the past 20 years that we have tried our hand at this. We buy companies because we admire what they were, not what they are now and we do not hand over to best candidates to run them. Themba Mliswa, Super Mandiwanzira are well known for making political noise, not for their business acumen. Its no secret that any business these guys take over will die an unnatural death. Ko kutanga zvenyu and make them grow kunei?

[Snowbank]

No, it's not because they are black that they fail. It's who has access to these brands. Access is determined by networks etc not necessarily by business acumen. A lot of the successful businessmen and women I know run small to medium operations 'under the radar'. Getting into the 'big scene' depends a lot on who you know. Ask Strive. Unless you are well connected or have the energy and patience to fight it out, you're better off running a SME that doesn't attract attention.

[Iyazve?]

Put it this way/
If you take the Senior Management of Delta///!Give them the company, the market is still the same,infact nothing changes apart from ownership.

Do u know how long the company will last?Do you think they will last more than 5 years?

[sara ugarike]

steady mudhara. unofa neBP ukanyanyo funga nyaya iyi.

this is a complex issue with many different factors at play and the sad truth is we do avoid the hard facts that influence our failures.

The biggest problem is not understanding the difference between income and profit.
a bussiness can be making an annual income of a $1b but it's profit could be $10k and if you live a million dollar lifestyle you will go broke very fast.
The other thing is we haven't quite grasped the idea of creating wealth. we can "make money" but we seldom create wealth. Short term gains are all we look for and seek.

[zwe]

Interesting thread.... Please don't take offence to my opinion on the following, it is just an observation of mine that follows trends, but is by no means "the rule" for black owned businesses in Zim. I know many very successful 21st Century black owned businesses in Zim, but they are in the minority and don't make the headlines. They are also the ones that have been started up from scratch by these guys and so the owners know the business from the ground up. Also lets make a distinction between Family owned businesses and larger corporations.

To me, it is basically a matter of short termism, status display and Patronage through extended family employment.

Short termism - My theory is that this is an African thing where all the environmental dangers have bred into people a propensity to take what they can NOW, and bugger the consequences. A bird in the hand is worth two in the bush. This invalidates any long term planning that might otherwise create sustainable growth in a company. There is no serious re-investment and any "Cash at hand" at the end of the week is treated as expendable and for personal use.

Status Display - I have noticed that in a lot of black owned businesses, the appearance of success far outweighs the importance of actual bottom line balance sheet performance. When guys get into a big office, with a company car, new suit and shoes with a regular salary, they think they have made it in life. This is where the concentration slips, the drive fizzles out and liquid lunches take precedence over late nights on the shop or factory floor. I am guessing this is just a cultural thing that it is really important to show your family, village, tribe etc that you have made a success of it. Check the number of Benzes and Hummers etc on the streets of Harare and you will see what I mean.

Patronage through Extended Family Employment in a corporate environment - I think this is a really big one and it is found in the political sphere as well as the corporate world. In black owned businesses I often see extended family members employed regardless of qualifications or performance, and they are never fired no matter how little work they do. This is so that a web of "Support" is built up where all these family members are employed more for their "loyalty" than their ability so that the main man can feel secure in his position with the knowledge that so many people owe him a favour. As a result the business (or government) is filled with useless, non performing individuals and the business (or country) dies a natural death when it can no longer survive economically due to these people's non performance.

[John Kachere]

 zwe, on 04 July 2011 - 09:42 PM, said:

Interesting thread.... Please don't take offence to my opinion on the following, it is just an observation of mine that follows trends, but is by no means "the rule" for black owned businesses in Zim. I know many very successful 21st Century black owned businesses in Zim, but they are in the minority and don't make the headlines. They are also the ones that have been started up from scratch by these guys and so the owners know the business from the ground up. Also lets make a distinction between Family owned businesses and larger corporations.

To me, it is basically a matter of short termism, status display and Patronage through extended family employment.

Short termism - My theory is that this is an African thing where all the environmental dangers have bred into people a propensity to take what they can NOW, and bugger the consequences. A bird in the hand is worth two in the bush. This invalidates any long term planning that might otherwise create sustainable growth in a company. There is no serious re-investment and any "Cash at hand" at the end of the week is treated as expendable and for personal use.

Status Display - I have noticed that in a lot of black owned businesses, the appearance of success far outweighs the importance of actual bottom line balance sheet performance. When guys get into a big office, with a company car, new suit and shoes with a regular salary, they think they have made it in life. This is where the concentration slips, the drive fizzles out and liquid lunches take precedence over late nights on the shop or factory floor. I am guessing this is just a cultural thing that it is really important to show your family, village, tribe etc that you have made a success of it. Check the number of Benzes and Hummers etc on the streets of Harare and you will see what I mean.

Patronage through Extended Family Employment in a corporate environment - I think this is a really big one and it is found in the political sphere as well as the corporate world. In black owned businesses I often see extended family members employed regardless of qualifications or performance, and they are never fired no matter how little work they do. This is so that a web of "Support" is built up where all these family members are employed more for their "loyalty" than their ability so that the main man can feel secure in his position with the knowledge that so many people owe him a favour. As a result the business (or government) is filled with useless, non performing individuals and the business (or country) dies a natural death when it can no longer survive economically due to these people's non performance.

Also very true.

[2Shotz]

lets not forget Mutumwa Mawere

the other thing is that people wana venture into a bizz yavanenge vasina idea, experience or passionate about and with the case of G&D shoes vana Chiyangwa it was all about him runing the biggest shoe manufacturing company in Zim

[Grand Ayatollah Dismantler]

Well

I have worked with some brilliant black managers. And I have worked with some incompetent black managers.

I have worked with whites whose incompetence and stupidity will astound you (It can be quite revealing particularly in a Southern African context where blacks tend to have been indoctrinated that whites are infallible). But I have also had the benefit of working with many many inspirational, brilliant white managers and business leaders.

So there are good and bad individuals on both sides

But the truth is in general I have found whites to be better managers. I dont think its due to superior basic intelligence. After all we sit for and pass the same exams that whites also sit for. I think its something cultural. They way they are brought up.

Firstly whites are better at what I call organisational awareness. A white man who is part of something, tends to be better aware of his responsibility towards that organisation, whether its a company, a sports club or a public library. He knows that however big and important he becomes, he can never be bigger than the collective, he is just a part in it. He always puts the organisation first, himself second

Secondly to whites, legacy is important. A typical white man wants to remembered for what he leaves behind, for making a difference. As black people we typically care less about what happens to something when we are no longer associated with it. A white man will look back with pride that something he started still endures years after he has moved on. With black people you get the sense that legacy is not so important. I am here today. I take what I can, earn the plaudits and the wealth I can. What happens tommorow is someone elses business

Thirdly its the question of vision. Your average white manager of a business is thinking 5, 10 years into the future, maybe beyond. The average black manager its very difficult to get him to think beyond the current financial year. White managers on average are better planners

All these three attributes I have listed above make for whites being better managers. A lot of people will be offended by what I say. Its probably not very "revolutionary" or "nationalistic" or "patriotic". But sometimes its only by confronting these home truths that we can progress as a nation and as a people

[sara ugarike]

 Grand Ayatollah Dismantler, on 10 July 2011 - 07:38 PM, said:

Well

I have worked with some brilliant black managers. And I have worked with some incompetent black managers.

I have worked with whites whose incompetence and stupidity will astound you (It can be quite revealing particularly in a Southern African context where blacks tend to have been indoctrinated that whites are infallible). But I have also had the benefit of working with many many inspirational, brilliant white managers and business leaders.

So there are good and bad individuals on both sides

But the truth is in general I have found whites to be better managers. I dont think its due to superior basic intelligence. After all we sit for and pass the same exams that whites also sit for. I think its something cultural. They way they are brought up.

Firstly whites are better at what I call organisational awareness. A white man who is part of something, tends to be better aware of his responsibility towards that organisation, whether its a company, a sports club or a public library. He knows that however big and important he becomes, he can never be bigger than the collective, he is just a part in it. He always puts the organisation first, himself second

Secondly to whites, legacy is important. A typical white man wants to remembered for what he leaves behind, for making a difference. As black people we typically care less about what happens to something when we are no longer associated with it. A white man will look back with pride that something he started still endures years after he has moved on. With black people you get the sense that legacy is not so important. I am here today. I take what I can, earn the plaudits and the wealth I can. What happens tommorow is someone elses business

Thirdly its the question of vision. Your average white manager of a business is thinking 5, 10 years into the future, maybe beyond. The average black manager its very difficult to get him to think beyond the current financial year. White managers on average are better planners

All these three attributes I have listed above make for whites being better managers. A lot of people will be offended by what I say. Its probably not very "revolutionary" or "nationalistic" or "patriotic". But sometimes its only by confronting these home truths that we can progress as a nation and as a people

The ugly truth.

[Entener]

Zvemabhoyi zvinnetsa, kuba, kunyepa jealous. vanobudirira vanenge variko kwete kutumira munhu.

[Mahwan]

Mahwan, kuroyana too much, ukaisa fence kumusha kwako, unogona kuifira iyoyo

[Mujambajecha]

Give us time we will get there. Even the whites it took them hundreds of years as a people to develop this business savvy. That is not to excuse incompetence though. Its a cultural thing and culture evolves to meet the new challenges

[John Kachere]

 Mujambajecha, on 30 January 2012 - 12:54 AM, said:

Give us time we will get there. Even the whites it took them hundreds of years as a people to develop this business savvy. That is not to excuse incompetence though. Its a cultural thing and culture evolves to meet the new challenges

Thats more an excuse and a lame one at that...