A recent Ewing Marion Kauffman Foundationstudy revived the term “gazelle companies” to describe the young, rapidly-growing U.S. firms that are producing the majority of new jobs in the U.S. The report recommends that policy-makers nurture Gazelles to stimulate job growth at a time when unemployment is high.
I’m interested in another class of companies—young, well-run firms in emerging regions like the sub-Sahara. Like their Western counterparts, they’re creating a disproportionate number of jobs. But these young African companies are playing a more crucial role than gazelles do in driving market growth.
To belabor the metaphor, I call them Impalas, after the lean, swift gazelles indigenous to Africa. Impalas provide technology-enabled and outsourcing services to a growing number of multinational (MNC) service providers – mobiles, airlines and banks – in Johannesburg, Accra, and Nairobi, etc. They share many of the characteristics of gazelles, but there are some notable differences.
As the World Cup gets underway this week in South Africa—the first ever to be held on the African continent—the world media is turning its attention there.
Typically, coverage of Africa by the international media is limited to stories about intractable problems—disease, war, famine, and corruption. Many of the World Cup stories are taking a similar tact. Stories about the South Africa’s five new stadiums underscore the nation’s mounting debt while other pieces highlight its security concerns.
A lot of the coverage reflects the world media’s skewed view of Africa as a monolithic place that’s plagued with tragedy. Severe challenges do exist, but many African societies are quietly building their institutions and infrastructures. It’s time the outside world views Africa through a broader, more accurate lens. (more…)
Invest time in languages and intercultural awareness. Focus on becoming part of global citizenry. In exchange for the opportunity to participate everywhere/anywhere in the world you have the obligation to do something productive, which will improve the world. ~C.K. Prahalad
Distinguished scholar and visionary
The distinguished business scholar, C. K. Prahalad, died unexpectedly last week of a lung ailment at the age of 69. His contributions to the pursuit of business strategy and innovation are unparalleled. He’s had an enormous influence on my work and that of my peers.
Dr. Prahalad was more than a celebrated management guru, he was a visionary. He redefined the way that a growing number of global businesses deal with developing markets, and he helped to shape a new economic paradigm.
I spent the last couple weeks on assignment in Accra, Ghana. On this trip, I’ve seen more growth than any time since my company started working there in ‘07. This is a period of unprecedented business activity and promising new projects within and beyond the mobile sector. Meanwhile, new competitors from around the world are streaming in. This corner of Africa’s business scene is pulsating.
Astute businesses here are taking steps to preserve their client base and deepen relationships with their customers. We’re privileged to work with a new generation of African business leaders with the courage and determination to transform their offerings to meet the needs of an emerging class of consumers.
While the business world is preoccupied with the global economic recovery, a mobile revolution is quietly reshaping the marketplace in the developing world. In Africa, mobile phones are providing access to communications for millions of people who’ve never had fixed communications let alone cell phones. I’ve written before about the impact that such ‘leapfrogging’ is having on African business. Now, we’re beginning to see exciting and substantial commercial projects taking shape, particularly in the service sector.
It’s been a week since the Port-au-Prince earthquake and images streaming in are helping us to grasp the region’s boundless misery and desperation. Hundreds of thousands have perished, and despite our best efforts, more will die and suffer for myriad reasons including the inability to deliver relief where it’s needed.
Despite the gut-wrenching news, it’s heartening to learn that determined, inventive people are finding ways to alleviate the suffering and, in some cases, save lives.
One of the more interesting stories is about an open-source project called Ushahidi which takes its name from the Swahili word for “testimony”. The software, developed during the post-election violence in Kenya in 2008, enables text messages to be mapped by time and location. Anyone with an internet connection, regardless of the device they use to access it, can send a text message, an image or an email. Ushahidi can also store data offline for later synchronization.
The Wall Street Journal/MIT Sloan Management Review published a disturbing paper on why Western companies are failing to transform the Bottom of the Pyramid into a booming consumer market. The author argues that the base of the world’s economic pyramid – where people live on $2 a day or less – isn’t panning out as a market because potential consumers “haven’t been conditioned to think that the products being offered are something one would even buy.”
To support his argument, he cites the case of PUR, a low-cost water purification system developed by Procter & Gamble. The product provides the obvious benefit of affordable clean water where the risks of drinking contaminated water are high. But curiously, PUR* achieved low market penetration rates in test markets.
Why would consumers reject a product as salient as PUR? The author contends that Western companies simply haven’t created demand among low income consumers. “Companies must create markets—new lifestyles—among poor consumers,” he insists. His prescription is that Western businesses need to do a better job “conditioning” low-income people to be better consumers. Really?
Information’s pretty thin stuff unless mixed with experience. ~Clarence Day
Nearly every day, I work with colleagues who are eight or more time zones away. I’ve been doing this, with few interruptions, since the ‘80s. Back then, “geographically distributed” projects were run only by multinational corporations. Times have changed.
Global markets have become more interdependent, and collaboration across borders is now commonplace, even at smaller companies. Businesses know that they have to team up with companies in other regions to compete in the global “value creation” race*.
But a lot of companies struggle with this. In a June, 2009 survey by TMA World, 82% of respondents rated the performance of their company’s “global, virtual” teams as either ‘moderate’ or ‘poor’. Yet nearly all of those surveyed said that global teams were ‘very important’ to their organizations.
A recent Ewing Marion Kauffman Foundation study revived the term “gazelle companies” to describe the young, rapidly-growing U.S. firms that are producing the majority of new jobs in the U.S. The report recommends that policy-makers nurture Gazelles to stimulate job growth at a time when unemployment is high.
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