SME Failure due to lack of purpose: Lessons from # Red alert

The recent expose by NTV on the excessive use of preservative on meat to increase shelf life hence make more profits by some retail chains was a reflection point for Kenyan entrepreneurs.

Whist the practice by select retailers is wrong and was rightly condemned; the incidence is a pointer to the current approach to entrepreneurship in Kenya where the focus is growth and scale at all cost.

There are many other examples that I have come across such as entrepreneurs planting arrow roots in sewage waters, harvesting then smearing them with red soil to give an impression that they hail from lush green highlands of central Kenya, Farmers spraying pesticides and selling almost immediately due to demand exposing consumers to toxic chemicals, car dealers rewinding car mileage to give an impression of a low mileage vehicle hence sell at a higher price, brokers buying leather shoes cheaply at Kariokor market and selling them at much higher prices disguised at imported designer shoes and fast food restaurants using ‘transformer oil’ for cooking French fries among many other examples.

Other than the traditional causes of SME failure at 75% within three years, the lack of purpose among not only SMEs but legacy companies is standing out as their Achilles heels.

Purpose has to do with founders or managers personal values and ethics than business plans, corporate social responsibilities or marketing strategies

Whilst companies such as Nakumatt, Kenya Airways, mumias sugar,Uchumi among many others have clear and detailed vision, mission statement as well as inspiring core values all of them have suffered failure due to lack of adherence to the same values they claimed to be following which begs the question of if we as a society really value purpose. The problem is further validated by the fact that few family businesses in Kenya go beyond second or third generation.

The lack of purpose keeps the business focused on short term gains fueled by growing at all cost rather than long term sustainability underpinned on shared value with customers.

Kenyan entrepreneurs must take a paradigm shift in terms of the purpose of their businesses. Gone must be the days where entrepreneurs copy vision, mission and values from the internet because they sound cool and hip to deep reflection on morality, ethics and personal values.

If your business is aligned with your purpose you as the founder will be motivated to work on your business even during tough economic times, employees attrition will be less since they subscribe to a vision and a set of values that are being lived out on a day to day at work and customers will remain loyal.

https://viffaconsult.co.ke/sme-failure-due-to-lack-of-purpose-lessons-from-red-alert/