Uzoma Dozie, the Founder and Chief Executive Officer of Sparkle Nigeria, has been in businesses long enough to know what works. That is why when he recently published a lengthy Op-Ed on what influenced businesses in 2020 and what to expect this new year, we paid close attention and read every detail.
According to him, the availability of financial capital is the one factor that determined which businesses thrived or failed in 2020. And that same factor is going to determine which businesses will thrive or fail in 2021.
Why is this the case?
Mr Dozie’s explanation is as simple as it is plausible – businesses that had financial capital to fall back on amid the pandemic, were the ones who were able to continue running their daily business activities such as paying bills and salaries. In other words, businesses who didn’t have accrued financial capital to rely on struggled to raise some. Unfortunately, capital was quite scarce during the period.
“From a business perspective — those who had accrued financial capital to fall back on during the toughest times, were able to continue to do business — paying bills, paying staff. That in itself — ensuring timely payments of salaries, is a social bond, and part of an employer’s social [and professional] capital. Furthermore, from my own observations and interactions, I also noted that much of the social capital accrued between individuals and businesses during this time, came to fruition; those who did need support, or an extension for payment of invoices, supplier credit or an extension of delivery times, were able to pool the social and professional capital they had with their counterparts, so they could still function, in some form. Or perhaps even to grow. Those who had earned or indeed lost professional capital in pre-COVID times, were unlikely to have any reserves to call upon during COVID.”
You may read the rest of Uzoma Dozie’s Op-Ed by clicking here.
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