Crisis Builds Courage and Resilience

It appears that we are now living in a chaotic world due to the global crisis.

On a daily basis, we are exposed to reports of political leaders pointing fingers, blaming each other and bickering – to say nothing of the failures to find solutions to stopping wars.

Threats of the unilateral alteration – and even removal – of trade agreements, increasing tariffs and the imposition of sanctions are now commonplace.

In other words, the world is chaotic and filled with uncertainty and even panic. Most countries in the developing world seem confined to limiting options, but are yet to accept what is left behind.

However, being hit by an unexpected calamity usually results in intelligent thinking and enhances alternative solution discovery.

When faced with a crisis, one’s thinking becomes sharper. The initial response and subsequent follow-through will determine your success in navigating the path to eventually overcome the challenge.

Most entrepreneurs will become aware after a few years of doing business that courage and resilience are essential factors when dealing with crises. Highly unpredictable situations are not surprising to entrepreneurs, who are often exposed to imponderable circumstances during the business process.

Some of the daily challenges that are part and parcel of managing an enterprise include securing funding, managing cash flow optimally, decisively dealing with bureaucracy, and coping with unpredictable and self-centered staff, suppliers and customers.

They are tough but can be dealt with by utilising the expertise gained over time.

However, the challenges encountered nowadays in the business sector in Namibia – a sparsely populated country with many friends and no enemies – will be more difficult for its entrepreneurs to cope with.

They are the broader economic, talent-related and geopolitical issues brought about by global uncertainty, and entrepreneurs will need to discover and prepare for them accordingly.

Economic disruptions include supply chain uncertainty, escalating input costs caused by oil and energy prices, currency fluctuations and interest rates.

The talent-related challenges include the lack of skilled personnel, productivity levels, escalating remuneration demands and skewed labour laws.

Geopolitical issues that will impact business are the greatest unknowns. Geopolitical disruptions include unresolved distant conflicts and international changes in trade and tariff policies.

All these challenges could rapidly evolve into crises, resulting in local supply shortages and increased input costs, followed by lower customer demand.

Crisis situations are unpredictable, complex and dynamic, necessitating swift adaptation to changing circumstances. This requires the entrepreneur to demonstrate confidence and be able to guide their employees through the turbulence.

Do you possess the courage necessary to deal with emerging issues? Having courage does not mean that you are not afraid of what lies ahead – but it does mean that you will not let the fear hold you back.

For an entrepreneur who identifies a crisis, it is best to accept the responsibility to resolve it and in doing so, build your resilience to cope with the inevitability of the next one.

• Danny Meyer is reachable at danny@smecompete.com.