It is so hard doing business here. The entry barriers to entrepreneurs who are not into trading are so high.
The requirement to
pay two-three years rent in advance; to spend an equivalent amount
renovating the high cost premises; to buy a generator, fuel and service
it; to secure and pay for your own source of water; to hire staff
simply to manage those services: plumbing, electrical,
air-conditioning, generator. All of this before you can focus on your
business and customers. It is too much!
A long established
and successful community for whom business is also hard, but not as
tough, is the Lebanese community. They have their own model of doing
business in Nigeria – the Lebo model – as it is fondly called, and it
supposedly works. It is profitable. Their set up and operating costs
are kept low. Members of the community are employed and engaged in the
success of the venture – be it food and beverages, hospitality,
manufacturing, construction and other sectors.
What is it that
makes Lebanese-owned ventures more sustainable? What do they know or do
that helps them weather the harsh business climate, after all they face
the same economic and HR issues.
They have similar
pressures to support extended family, to provide jobs and contacts, to
visit home during festivals and holidays.
Findings from anecdotal research are that, in general:
* The Lebanese set up businesses as their livelihood, not as business investment or future institutions
* Their businesses
are family businesses. There is an expectation of family members and
children to be loyal and to do their duty by serving in the business
and securing the livelihood of the larger family
*They are
integrated into their communities in whichever country they are settled
in. Their children go to local schools and the Lebanese school is open
to others
*They are religious and participate with Nigerians in the rituals of the two major faiths
*As individuals, they do not put on airs and graces, or ‘big-manism’ no matter how wealthy they are
*They rarely get bigger than their businesses or seek to be celebrities in their own right
*They get their
hands dirty in their businesses, so no aspect goes unnoticed by the
boss, and the staff know this. They are not too big to clear restaurant
tables, for example
* As contractors,
they expect to give and receive favours and yet, crucially, they
generally deliver the goods, though sometimes at minimum standard
*They are skilled at relationship management and make loyal and useful friends in business and politics
*They produce and
sell what they know well, and from competitive sources that they can
control, like other Lebanese businesses here or in Beirut.
The elements of
their model have principles that, when compared to our own businesses,
make it glaringly clear why they are able to sustain a business for
years rather than be serial entrepreneurs.
The Naija model
The Lebanese keep
it simple. Everyone reports to the head of the family, who has the
responsibility and ultimate authority. We make it complicated; delegate
responsibility but not authority. Some staff report to the owner, not
to their boss.
Their family
members contribute time, expertise, money, and most importantly,
loyalty. Our family members tax our time, expertise, money, and most
devastatingly, our trust.
They don’t over-spec even for a luxurious look. We make it grand. Compete with the best worldwide.
They seek volume, and the large medium-low end of the market. We seek exclusivity and the top end of the market.
They don’t
over-promise, except through exuberance. We promise the moon, and
expect our customer to understand that we tried very hard to get off
the earth.
They manage the
business themselves. We own it, get others to manage it, but make the
day-to-day decisions. The owner only brings in business. He does not DO
the business.
They have a back
office and someone whose only job is to handle money before passing it
on to the accountant. We leave our staff to handle cash as it comes in
without check and balances. When we are tired of money going missing,
we get an accountant and leave him/her to both approve AND make
payments!!
Both they and we
personally sign all cheques. Very important!!! But it does not leave
room for the business to grow exponentially – just to remain small and
profitable.
They bring in
relatives to manage branches. We employ strangers as a favour to
friends, family, and to the big wo/men who send CVs to us.
If a family member
disappoints, they discipline them, forgive them and try again, or
select another family member. We swear never to employ another family
member. It is better for strangers to cheat us! I know this is a very
broad generalisation. Actually, some Lebanese businesses do not fall
within this mould and many Nigerian businesses do make us proud. Yet,
there are clear and diametrical differences in how the two communities
approach business, especially where family members are involved.
There is a lot that
we can do as business owners to ease our lives; to manage our
businesses more cost-efficiently with greater benefit to our
communities; to motivate our staff to be more responsible; and to make
our decisions less sentimental, and less influenced by international
branding and personal status. We are the ones who will benefit. What
are we waiting for?
