The Big Lie of Small Business | Vusi Thembekwayo | TEDxUniversityofNamibia

Summary

This powerful speech challenges the status quo and calls for a radical shift in African entrepreneurship. It emphasizes the need to move beyond small businesses and embrace big business models, highlighting success stories like 'gutter' food stalls and stock fells. The speaker advocates for a new mindset, focusing on building legacy businesses and leveraging the African diaspora's knowledge. He stresses the importance of infrastructure, capital, and mentorship to foster growth and innovation, urging Africans to have faith in their ability to change the continent's narrative.

Takeaways

• 🌏 The speaker challenges the status quo, urging African people to break free from being passive recipients in a global system that has historically disadvantaged them.
• 💡 The importance of entrepreneurship is emphasized, with the speaker advocating for Africans to move beyond just starting small businesses and to aim for creating large, impactful institutions.
• 🍔 The 'Gutters' example illustrates the potential of local food culture to be a significant export, highlighting the need to capitalize on unique cultural elements.
• 📈 The comparison between 'GOD' and 'Quarter Joe' shows how local businesses can outperform franchises, suggesting that local innovation and entrepreneurship can be highly successful.
• 🏦 The concept of a bank is demystified, explaining it as a collective investment scheme, and the potential of communal financial models like 'stokvels' is recognized.
• 📊 The speaker points out the need for Africans to understand and engage with the ecosystem and life cycle of entrepreneurship to build sustainable and scalable businesses.
• 💼 The speaker's own experience in venture capital underscores the importance of access to patient capital and the role of venture capital in fostering entrepreneurship.
• 🚀 The importance of building businesses with a philosophy that aims to change the world and not just for personal gain or quick profit is highlighted.
• 🛣️ The need for infrastructure that facilitates trade and movement of goods within Africa is identified as a critical factor for business growth and continental integration.
• 🤝 The speaker calls for a change in mindset, a culture of delayed gratification, and the creation of a supportive ecosystem for entrepreneurs to thrive.
• 🌱 The final message is one of faith in the African continent's potential, urging the next generation to believe in the unseen opportunities and to trust in their ability to shape the future.

Q & A

What is the main concern expressed by the speaker regarding the status quo for African people over the past 100 years?

The speaker is concerned that the status quo has positioned African people as recipients of global forces, rather than active participants in shaping the world, and questions the lack of significant contributions by African people to global developments.

What is a 'Gutter' in the context of South Africa as mentioned by the speaker?

A 'Gutter' is a type of street food in South Africa, made by cutting a loaf of bread into quarters, removing the soft center, and filling it with ingredients like french fries or sausages with ketchup, then covered with a soft pot. It represents a cultural food experience that is deeply rooted in the local soul.

What is the example given by the speaker to illustrate the potential of small businesses in South Africa?

The speaker uses the example of 'Gutters' and the business 'T-Bolts Cortez' to show that even small businesses can grow significantly. T-Bolts started with a turnover of 53,000 rand and grew, while a franchise called 'Quarter Joe' that started later achieved a turnover of 20 million rand.

What is the concept of 'Stokvels' in South Africa, and how does the speaker relate it to banking?

Stokvels are collective investment schemes where members contribute money and use it for collective purchases or savings. The speaker relates it to banking by explaining that banks operate on a similar principle, pooling money and lending it to creditworthy individuals at a premium.

How does the speaker describe the growth of a business from a startup to a larger entity?

The speaker describes the growth as a progression from a startup, which is a one-person operation, to a success, which involves a team managing and delivering work, and finally to a growth level where the business is large and established, with the potential to own the entire supply chain of a product.

What are the six essential elements for entrepreneurs to succeed according to the speaker?

The speaker identifies infrastructure, capital (patient money), access to markets, strong administration, assets, and people as the six essential elements for entrepreneurs to succeed.

Why does the speaker believe that many African entrepreneurs fail to build large businesses?

The speaker believes that African entrepreneurs often lack a deep understanding of the ecosystem and life cycle of entrepreneurship, and they may not have access to the necessary venture capital, patient money, or supportive infrastructure that allows businesses to grow.

What is the speaker's view on the importance of building businesses for the right reasons?

The speaker emphasizes that businesses should be built with a philosophy that is greater than the individual, focused on changing the way the continent works, bettering other people's lives, and creating unique innovations that are only available in Africa.

What does the speaker suggest as a solution to the problem of top talent leaving Africa?

The speaker suggests reshaping the narrative to attract top talent back to Africa, leveraging the knowledge in the African diaspora, and creating a culture that values long-term growth and innovation over short-term gains.

How does the speaker define 'faith' in the context of entrepreneurship and the African continent?

The speaker defines 'faith' as the ability to see the invisible, believe in the impossible, and trust in the unknown, encouraging the next generation to have faith in their own continent and its potential for growth and innovation.