It is Business Stupid: The Theory of Business.

Society has evolved from the agrarian feudal society to a modern society driven by business through technology, motivation and competition. The business unit has been the driving force of this change and the pursuit of the creation of the customer and the pursuit of profit have been at the forefront of business. In the recent years, the issues of keeping in mind different stakeholders has come to the forefront. Unfortunately, the developing countries have not yet grasped the concept of business.

A few entrepreneurs have emerged and the multi-nationals have come to fill the void. The poor people in these countries have then been blamed for being poor rather than enabling them understand what business is. There is so much effort in developing entrepreneurship and possibly very little effort in helping the people understand what business is.

The need to integrate the poor people into business needs not to be re-emphasized but many cures for startup and successful business have been provided without providing the understanding the very concept of what business is.

To understand the business, we need to understand the theory behind it hence this proposition. The theory of the business is constituted by the mission of the business, the productivity challenge and empowering the people that manage the business. In religious literature, Jesus’ mission on earth has been most enduring and most visible. This Easter weekend, Jesus’ mission on earth is being remembered. No individual, no organization without a mission can claim to exisit because it is the reason why that individual or that organization exists. Those that are unable to articulate their missions drift hopelessly. From the business perceptive must be very clear on why they are starting a business not simply do something because another person is doing it. Business is anchored in a mission.

It is Peter Drucker who talked about the essence of business as creating a customer. The customer will be the person to buy the products that you intend to produce. Before ideas go onto paper, there must be visualization of who the customer will be, who is going to buy, how does he buy, where does he buy from, why does he buy among others. looking at the folks in the current side, without the exposure of the dynamics of production, competition, demanding consumers, there is no way  the person in the current side will figure out customers on a large scale. Without customers, there is no business.

The productivity challenge is the other determinant of the business. Productivity is an expression of the efficiency of the organization. The input output relationship. It is driven by technology and the quality of the workforce. It is only when you are able to produce efficiently that you can sell your products in the market competitively. Every business must therefore be highly competitive.

While the productivity challenge involves the effective utilization of resources, the people who will do this are the fuel for the success of the business. Without motivated people, without knowledgeable people, without skilled people, no business can survive competition.

What Africa needs is educating people about what business and bringing them in on the theory of business.